Middle East Funds Score Massive Gains from Chinese AI Bets Despite Global Market Turmoil
Middle Eastern sovereign and investment funds have recorded exceptional gains from early bets on newly listed Chinese artificial intelligence companies, defying a broader global equity sell-off triggered by escalating geopolitical tensions in the Gulf.
An investment of $65 million by Abu Dhabi Investment Authority (ADIA) as a cornerstone investor in MiniMax Group has surged more than sixfold, exceeding $400 million as of Tuesday’s close, following the company’s Hong Kong listing in January.
Similarly, a pre-IPO investment of around $30 million by Aramco Ventures in Knowledge Atlas Technology, also known as Zhipu, has climbed to approximately $415 million since its debut earlier this year.
Both companies rank among the top-performing IPOs of 2026, part of deals that collectively raised over $500 million. Their listings marked one of the first waves of generative AI companies to go public following the global surge in interest sparked by ChatGPT, contributing to a strong start for Hong Kong’s IPO market.
The sharp rise in these stocks highlights robust investor appetite for Chinese AI firms, even as global markets face pressure from ongoing geopolitical tensions. Recent attacks on energy infrastructure across the Middle East have disrupted oil markets and weighed on equities, raising concerns over potential risks to critical assets such as data centers in the region.
ADIA, managing assets estimated at around $1 trillion, remains one of the world’s largest sovereign wealth funds, while Aramco Ventures oversees approximately $7 billion in assets.
Although AI investments represent a relatively small portion of total allocations, they come at a time when Middle Eastern investors face a delicate balancing act between their largest markets—the United States and China.
While some Gulf entities have moved to scale back ties with China and increase investments in Western markets, others continue to pursue opportunities in Beijing, carefully avoiding deals that could raise regulatory concerns in Washington.
Despite ongoing regional tensions, sovereign funds have remained active globally. A subsidiary of Saudi Arabia’s Public Investment Fund recently agreed to acquire gaming company Moonton from ByteDance for $6 billion, underscoring continued deal-making momentum.