UAE and China Sign Investment Pact as Luckin Coffee Eyes Gulf Expansion

The governments of the United Arab Emirates and China formalized a bilateral memorandum of understanding to accelerate two-way investment flows, according to the UAE-China Chamber of Commerce. The signing was attended by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Chinese Premier Li Qiang, with the agreement executed by UAE Minister of Investment Mohamed Hassan Alsuwaidi and Liu Sushe, Vice-Chairman of China's National Development and Reform Commission. Under the pact, both nations plan to explore joint investment platforms, dedicated funds, and cross-border commercial vehicles targeting domestic and third-party markets. Minister Alsuwaidi stated that China remains the UAE's primary trade partner and fourth-largest source of foreign direct investment, with more than 16,000 Chinese enterprises registered in the country.

In tandem with bilateral investment initiatives, Chinese coffee chain Luckin Coffee is weighing an expansion into Persian Gulf markets after securing backing from Abu Dhabi sovereign wealth fund Mubadala. Luckin Chairman David Li, who also serves as co-founder and CEO of controlling shareholder Centurium Capital, told CNBC that the chain is actively considering entering regions such as Gulf countries.

Mubadala became a direct investor in Luckin Coffee following a $1 billion joint investment with Centurium in early September, though neither party disclosed the size of their respective equity stakes. The $385 billion sovereign wealth fund has deployed more than $20 billion into Chinese ventures, including investments in e-commerce company Shein and commercial property developer Dalian Wanda's shopping malls business.

Luckin CEO Jinyi Guo told CNBC that the primary rationale for targeting the Gulf market is stable, high-frequency coffee demand alongside consumer interest in low-sugar, health-oriented beverages. With backing from Centurium, Luckin has surpassed Starbucks as China's largest coffee chain by sales volume.