Abu Dhabi is considering combining China-related holdings from L’imad Holding and Mubadala Investment into a jointly owned investment vehicle, Bloomberg reported, citing sources.
The plan is intended to simplify the emirate’s approach to investing in China by reducing the risk of separate Abu Dhabi-backed entities pursuing the same transactions.
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L’Imad Holding Company was formally established less than a year ago. It made headlines in late 2025 for being among several Gulf state funds backing Paramount Skydance’s bid to take over Warner Bros. Discovery. It was seen as a reshuffling of the country’s sovereign wealth funds, as it took over the assets of peer ADQ.
Mubadala has long been a key UAE investment fund with a portfolio value of $385bn, according to its website.
If pursued, the arrangement would form part of a broader effort by Abu Dhabi to coordinate how capital is deployed and to reinforce its investment presence in China.
Talks over the vehicle’s structure and investment approach are still under way, and no final decision has been reached.
The proposed setup would place oversight of the economic relationship under two senior figures: Abu Dhabi Crown Prince Sheikh Khaled bin Mohammed, who oversees L’imad, and Khaldoon Al Mubarak, who heads Mubadala and has long managed ties with China.
L’imad’s China exposure includes assets linked to sovereign investor ADQ, which it absorbed this year.
Mubadala, meanwhile, has put more than $20bn into more than 100 investments in China since 2015.
The two organisations already have close connections, with Mubadala executives represented on L’imad’s board.
Abu Dhabi, which oversees about $1.8tn in sovereign wealth, has historically directed much of its investment activity towards the US and Europe, but is now increasing allocations to Asia.
Non-oil trade between the UAE and China passed $100bn for the first time in 2025.
Earlier this year, Mubadala said it was broadening its footprint in Asia, with a goal of reaching roughly 25% exposure by the end of the decade under its 2024 strategy.
The report said Abu Dhabi has maintained investment in alternative assets, private credit, technology and hospitality despite ongoing geopolitical tensions in the region.
L’Imad recently completed a $2.3bn transaction in Jordan. It holds assets including McLaren Automotive and a stake in Nio.
Mubadala declined to comment, while Abu Dhabi’s Ministry of Foreign Affairs and media office did not respond to requests for comment.
