Middle East funds ride China AI euphoria to world-beating IPO gains

Published Tue, Mar 24, 2026 · 08:42 PM

[HONG KONG] Middle Eastern funds have racked up outsize gains from bets on newly-listed Chinese artificial intelligence companies, bucking a broader sell-off in equity markets caused by the ongoing conflict in the Gulf.

Abu Dhabi Investment Authority’s (Adia) US$65 million cornerstone investment in MiniMax Group has risen more than sixfold as of Tuesday’s (Mar 24) close to over US$400 million since the firm listed in Hong Kong in January. Aramco Ventures’ roughly US$30 million pre-IPO investment in Knowledge Atlas Technology, known as Zhipu, has meanwhile climbed to about US$415 million since its debut at the start of the year.

The Chinese firms rank as the best-performing listings of the year for deals that raised more than US$500 million. MiniMax and Zhipu were among the first post-ChatGPT generative AI firms to go public in January, contributing to a strong month for listings in Hong Kong.

The surge in their shares since has underscored strong appetite for Chinese firms in the sector and contrasts with a sell-off globally. Attacks on energy and infrastructure targets across the Middle East over the past month have shaken oil markets and weighed on equities, while raising concerns about potential disruption to critical assets such as Gulf data centres.

The US$1 trillion Adia is one of the world’s largest wealth funds and Aramco Ventures oversees assets of close to US$7 billion. While the investments into the AI firms represent a tiny proportion of overall outlays, they come at a time when Middle Eastern investors are having to navigate a delicate balancing act between their biggest markets – America and China.

Many Gulf entities have attempted to pare back ties to China and pledged investments in key Western markets. Others have said they continue to look at investments in Beijing, while steering clear of deals that could raise concerns in Washington.

A unit of Saudi Arabia’s Public Investment Fund agreed to buy gaming studio Moonton from China’s ByteDance for US$6 billion earlier this month. Adia has previously invested in appliance maker Midea Group’s US$4 billion listing in Hong Kong, and was involved in an US$8.3 billion deal for Dalian Wanda Group’s shopping mall management unit alongside the emirate’s Mubadala Investment.

Middle Eastern wealth funds have emerged as prolific dealmakers in recent years, splashing out hundreds of billions of US dollars around the world across sectors ranging from finance and technology to sports. Even amid the recent conflict, funds including Adia have continued to pursue global deals.

The United Arab Emirates (UAE), Saudi Arabia and Qatar pledged to invest trillions of US dollars into the US when President Donald Trump visited last year. Last week, the UAE’s ambassador to America threw his weight behind his country’s commitments to the US, despite concerns that a prolonged war with Iran could strain government finances across the Persian Gulf. BLOOMBERG