Abu Dhabi may merge China assets of L’imad and Mubadala

• Scheme to stop funds competing
• New entity to be jointly owned
• Expansion in Asia a priority

Abu Dhabi is reportedly mulling merging the assets of two of its sovereign funds in China into a new entity to prevent competition between them.

The planned venture will be jointly owned by L’imad Holding Company and Mubadala Investment Company, Bloomberg reported, quoting unidentified sources.

The move will stop Abu Dhabi wealth funds from competing for the same deals as the emirate seeks to expand across China.

Details on the new entity’s holding and plan are still under discussion, the report said.

L’imad is chaired by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the eldest son of UAE president Sheikh Mohammed. The fund manages assets in the UAE and internationally in sectors such as infrastructure and real estate, financial services, technology, urban mobility and smart cities.

L’imad has exposure to China through Abu Dhabi Development Holding Group (ADQ), which it absorbed in January.

Mubadala has been led by Khaldoon Al Mubarak since 2022, according to the company’s website. He is the chairman of technology investor MGX and serves on the boards of oil major Adnoc, L’imad and technology group G42.

• L’imad absorbs ADQ to create ‘investment powerhouse’
• Mubadala maps out infrastructure and Asia plan
• L’imad marks rise of new generation in Abu Dhabi

The fund has deployed $20 billion across 100 investments in China since 2015, Bloomberg said. 

Mubadala aims to raise Asia’s share to 25 percent over the next five to 10 years, its Asia head Mohamed Albadr told Abu Dhabi Finance Week in December 2025.

The sovereign fund’s assets under management rose by nearly one-fifth to $385 billion in 2025. It invested $39 billion last year, up from $32 billion in 2024 and its biggest annual deployment since at least 2018.