In Depth: Why Chinese PE and VC Firms Are Chasing Middle East Money

Chinese venture capital (VC) and private equity (PE) firms are targeting deep-pocketed Middle Eastern investors, as funding from their traditional backers dwindles amid growing geopolitical tensions and shrinking opportunities for investment partners to sell their stakes through IPOs.

At least 200 Chinese VC and PE firms visited the Middle East last year to drum up business, according to data compiled by an agency that tracks interaction between financial institutions in China and investors in the region. PE firm CMC Capital Partners and VC firm Joy Capital are among those who have set up offices in Abu Dhabi.