Middle East Petrodollars Shift Toward Asia: Bluefive and Fang Fanglei Seek Chinese Assets (AI Translation)
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文｜财新 丁锋
By Ding Feng, Caixin
【金融我闻/丁锋】数十年来，沙特阿拉伯、阿联酋、科威特等海湾国家的石油财富，一直多投向北美和欧洲市场。然而，近几年地缘政治变迁，加之以沙特、阿联酋为代表的中东国家正在积极布局“后石油时代”的经济转型，包括印度、中国等在内的亚洲国家，都成为新的选择。
[Finance Review/Ding Feng] For decades, the oil wealth of Gulf nations such as Saudi Arabia, the United Arab Emirates, and Kuwait has primarily flowed into North American and European markets. However, in recent years, shifts in geopolitics—alongside proactive strategies by Middle Eastern states like Saudi Arabia and the UAE to transition their economies for a “post-oil era”—have positioned Asian countries, including India and China, as attractive new destinations for investment.
大约从2022年起，中国企业和投资机构访问中东、中东的投资机构来中国这样的互动逐渐升温，双向投资日益增多。但整体而言，中东机构对中国市场的认知仍显不足，目前在中东的投资机构中，真正具备中国视角的可谓凤毛麟角。“中东投资者对中国乃至亚洲市场展现出了非同寻常的好奇心。通过持续的知识积累，必将转化为实际投资意愿。”一位具有中东背景的投资者这样告诉财新。
Since around 2022, interactions between Chinese companies and investment institutions and their Middle Eastern counterparts have steadily increased, with growing two-way investment flows. However, overall knowledge of the Chinese market among Middle Eastern institutions remains limited. Among the investment entities in the region, those with a genuine China-centric perspective are extremely rare. “Middle Eastern investors have shown an extraordinary curiosity about China, and even Asia as a whole. With sustained knowledge accumulation, this interest will certainly translate into real investment willingness,” a Middle Eastern investor told Caixin.
在这样的背景下，BlueFive Capital将自己定位于帮助中东资金搭建了解亚洲市场的平台。这家成立于2024年底的私募股权基金，核心管理团队主要来自Investcorp的中东非主权财富基金，将中国及“全球南方”的其他一些新兴经济体作为其重要布局方向。
Against this backdrop, BlueFive Capital has positioned itself as a platform to help Middle Eastern capital gain insight into Asian markets. Established at the end of 2024, this private equity firm’s core management team consists mainly of executives from Investcorp’s Middle Eastern non-sovereign wealth fund division. The firm regards China and other emerging economies in the "Global South" as key areas for development.
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- Middle East investment in Asia, especially China, has surged since 2022, driven by economic diversification beyond oil and increased geopolitical shifts.
- BlueFive Capital, founded in late 2024 by Hazem Ben-Gacem with strong Gulf-royal and Chinese ties, focuses on large-scale PE investments across the "Global South," targeting sectors like real estate, finance, and technology.
- Gulf sovereign funds (e.g., PIF invested $6.6B in Asia from 2022–2024) are shifting from the West to China, seeking long-term technology and innovation partnerships.
Over recent decades, oil-rich Gulf countries, such as Saudi Arabia, the United Arab Emirates (UAE), and Kuwait, have traditionally directed their investment focus toward North America and European markets. However, changing geopolitics and an increasing drive towards post-oil economic diversification, especially by Saudi Arabia and the UAE, are redirecting attention to new markets, with Asia—particularly China and India—emerging as significant alternatives. Since around 2022, there has been a marked surge in mutual visits and investments between Chinese firms/investors and those in the Middle East. Although most Middle Eastern institutions still lack deep understanding of China, there is evident and growing curiosity, which is expected to translate into further real investment [para. 1].
BlueFive Capital exemplifies this shifting trend. Founded at the end of 2024 by a team largely from Investcorp—a leading alternative asset manager in the Middle East with $55 billion in assets under management—BlueFive Capital positions itself as a platform to connect Middle Eastern capital with Asian markets, particularly China and other “Global South” economies [para. 1]. BlueFive Capital recently made its first strategic acquisition, purchasing Neo Capital, a Dubai-based real estate investment platform with assets now totaling $650 million under management [para. 1].
A distinctive feature of BlueFive Capital is its backing by powerful Middle Eastern royal families and leading institutional investors, such as Bahrain’s Mumtalakat sovereign wealth fund, alongside prominent figures from China and Europe. The founding team includes Hazem Ben-Gacem, former co-CEO of Investcorp, who was instrumental in shaping Investcorp’s China strategy and expanding its AUM from $10 billion to $55 billion over 30 years [para. 1]. Ben-Gacem’s collaboration with Chinese financiers—especially Fang Fenglei, founder of China’s Hopu Investment—highlights the fund’s strong China orientation. Hopu’s Fang has an illustrious track record in China’s capital market, having contributed to landmark deals and market creations since the early 1990s [para. 1].
BlueFive Capital’s investment approach centers on building a bridgehead in the Middle East to access “Global South” markets, including Asia, Africa, and Latin America. The firm mainly targets large, mature projects—from cutting-edge fields like new energy and materials to sectors favored by Gulf investors such as commercial real estate, consumer goods, and high-yield infrastructure (e.g., oil and gas pipelines). Its acquisition of Neo Capital marks the first step, with further plans to acquire an Islamic finance company and pursue landmark real estate and consumer asset deals in China. BlueFive Capital is also collaborating with Chinese partners to bid for major acquisitions, such as Starbucks China, and aims to help Chinese companies use the Middle East as a springboard for global expansion—evidenced by their involvement in a high-profile industrial project backed by the Saudi Public Investment Fund (PIF) [para. 2].
This strategic realignment by Gulf countries toward Asia is partly a response to tightening Western regulations and political challenges, which have prompted sovereign wealth funds to reassess and diversify. The shift is underpinned by the need to invest in high-growth sectors, such as battery technology and artificial intelligence, where China is currently a global leader. From 2022 to 2024 alone, Gulf investments in Asia more than doubled, with PIF allocating $6.6 billion in that period [para. 3].
Middle Eastern capital is characterized by a long-term orientation, prioritizing new technology and sustained growth over short-term returns, while also maintaining resilience to geopolitical risks. Increasingly, Gulf investors are co-investing with Chinese private equity firms and supporting Chinese companies’ overseas expansion, especially using hubs like Dubai and Abu Dhabi as platforms to reach Central Asia, South Asia, and Africa. In this context, China’s achievements in innovative technologies and pharmaceuticals continue to attract Gulf capital, reflecting the deepening of economic ties between the two regions and a significant change in the global investment landscape [para. 3].
- Credit Suisse
- Credit Suisse is mentioned as the company where Hazem Ben-Gacem worked for two years, engaging in merger and acquisition activities after graduating from Harvard. Ben-Gacem later joined Investcorp and eventually co-led it, expanding its assets under management significantly. He is now the founder of BlueFive Capital.
- Hopu Investments
- Hopu Investments is a Chinese private equity firm. Its founder and chairman, Fang Fenglei, is a founding shareholder and board member of BlueFive Capital, a new private equity fund. Fang Fenglei and BlueFive Capital's CEO, Hazem Ben-Gacem, have a long-standing professional relationship. Hopu Investments is also reportedly collaborating with BlueFive Capital in bidding for Starbucks China.
- China International Capital Corporation
- Fang Fenglei, founder of Hopu Investment, who helped establish China International Capital Corporation (CICC) in 1993, is noted as one of the Chinese founding shareholders of BlueFive Capital. BlueFive Capital is a private equity fund founded in late 2024 that aims to bridge Middle Eastern capital with Asian markets.
- BOC International Holdings
- Fang Fenglei, founder of Hopu Investment, previously served as an executive at BOC International Holdings.
- Industrial and Commercial Bank of China (Asia) Financial Holdings Limited
- Fang Fenglei, a prominent figure in Chinese investment banking, served as the Executive President of Industrial and Commercial Bank of China (Asia) Financial Holdings Limited. His career includes leadership roles at notable financial institutions like China International Capital Corporation and BOC International Holdings.
- Goldman Sachs Gaohua Securities
- Goldman Sachs Gaohua Securities is a company where Fang Fenglei, founder and chairman of Hopu Investment, previously served as chairman. Fang Fenglei is also a founding shareholder and board member of BlueFive Capital, a private equity fund focused on investments in the "Global South," including China.
- Temasek
- Temasek is an international investment company headquartered in Singapore. It is mentioned as one of the initial major investors in Hopu Fund Management Company, founded by Fang Fenglei. Hopu Fund, with an initial size of $2.5 billion, attracted significant international institutions like Temasek, Goldman Sachs, and PSA.
- Goldman Sachs
- Goldman Sachs is mentioned as a firm where one of BlueFive Capital's founding shareholders, Fang Fenglei, previously served as Chairman of Goldman Sachs Gao Hua Securities. Fang Fenglei co-founded Hopu Fund Management Company.
- KPMG Greater China
- KPMG Greater China is mentioned in relation to its former chairman, who co-founded Hopu Fund Management. This company initiated with $2.5 billion, attracting investors like Temasek and Goldman Sachs.
- China Telecom
- The provided article does not mention China Telecom (中国电信). Therefore, I cannot furnish information about it based on the given content.
- Hong Kong Telecom
- Hong Kong Telecom was mentioned in the article as one of the large capital market projects that Fang Fenglei, founder of Hopu Investment, led or participated in during his investment banking career. The article does not provide further details about Hong Kong Telecom.
- China Mobile
- I am sorry, but the provided article content does not contain any information about "China Mobile" (中国移动). Therefore, I cannot answer your question.
- PetroChina
- The provided article does not mention PetroChina (中国石油). Therefore, I cannot provide information about it based on the given content.
- China Unicom
- China Unicom was mentioned in the article as one of the companies involved in major capital market projects led by Fang Fenglei, one of the founding shareholders of BlueFive Capital. Fang Fenglei was involved in China Unicom's restructuring and listing, among other significant projects.
- Sinopec
- Sinopec (中石化) is a Chinese state-owned energy and chemical company. The article mentions that its restructuring and listing were led by Fang Fenglei, a prominent Chinese investment banker and founder of Hopu Investment. This indicates Sinopec's significant presence in the global market and its involvement in major capital market projects.
- Baosteel
- Baosteel is a Chinese company that was part of a major capital market project. This project involved its restructuring and listing. It was overseen by Fang Fenglei, a prominent figure in China's investment banking sector, during his career.
- China National Offshore Oil Corporation
- The provided article does not contain information about China National Offshore Oil Corporation. Therefore, I cannot provide details about this entity based on the given content.
- Mumtalakat Holding Company
- Mumtalakat Holding Company is a Bahraini sovereign wealth fund and an institutional investor in BlueFive Capital. It is one of the key shareholders of BlueFive Capital, holding a 40% stake along with other Gulf royal family representatives and three notable European and Chinese individuals.
- Barclays Bank
- The article mentions Lord Gerry Grimstone, former chairman of Barclays Bank and Standard Life Aberdeen Group, as a board member of BlueFive Capital.
- Standard Life Aberdeen
- Standard Life Aberdeen (now Abrdn) was mentioned in the article as Lord Gerry Grimstone, former chairman of Barclays Bank and Standard Life Aberdeen, is a board member of BlueFive Capital. BlueFive Capital is a private equity fund founded in late 2024 by Hazem Ben-Gacem, the former co-CEO of Investcorp.
- Action Group Holdings
- Action Group Holdings is based in Kuwait. Its Vice Chairman, Sheikh Mubarak Abdulla Al-Mubarak Al-Sabah, is a board member of BlueFive Capital, a private equity fund founded in late 2024. BlueFive Capital aims to bridge the gap between Middle Eastern capital and Asian markets.
- Rakhaa Investment
- Rakhaa Investment, founded by Prince Turki Bin Abdulaziz Bin Farhan Al Saud, is listed as a significant stakeholder in BlueFive Capital, a new private equity fund. Prince Turki is also a board member of BlueFive Capital, underscoring Rakhaa Investment's connection to this new investment vehicle focused on Asia and the "Global South."
- Al Zaman Group
- Al Zaman Group, based in the Sultanate of Oman, is represented on the board of BlueFive Capital by its Managing Director, Khalid Mohamed Zaman. BlueFive Capital is a private equity fund founded in late 2024, focusing investments in "Global South" markets, including China.
- BlueFive Capital
- BlueFive Capital is a private equity fund established in late 2024, founded by Hazem Ben-Gacem, former co-CEO of Investcorp. It focuses on investments in China and other "Global South" emerging economies, leveraging its strong ties with Middle Eastern royalty and prominent international investors like Hopu Investment. The firm recently acquired Neo Capital, boosting its AUM to $650 million.
- Investcorp
- Investcorp is the largest alternative asset management institution in the Middle East, managing $55 billion in assets. It was an early entrant into the Chinese market, starting its investments in 2018 with a focus on technology and consumer sectors. Investcorp has expanded its China strategy from financial investments to controlling acquisitions.
- Neo Capital
- Neo Capital is a real estate investment platform registered in the Dubai International Financial Centre (DIFC), with offices in Riyadh, Jeddah, and Dubai. BlueFive Capital recently completed its first strategic acquisition of Neo Capital, increasing BlueFive Capital's assets under management to $650 million.
- Everbright Group
- The information about Everbright Group is not available in the given article content.
- Meituan-Dianping
- The article mentions Meituan-Dianping as one of the leading technology companies that benefited from an investment by Investcorp. This occurred through a **$483 million fund** co-launched by Investcorp and China Everbright Limited, specifically targeting growth-stage technology companies in China.
- SenseTime
- SenseTime is a leading Chinese AI company. It was part of a landmark fund invested in by Investcorp, a major alternative asset manager from the Middle East. This fund, established in 2018, focused on growth-stage tech companies in China, including SenseTime, demonstrating early Middle Eastern investment interest in Chinese technology.
- iQiyi
- iQiyi is a Chinese technology company that was included in an investment portfolio by Investcorp, one of the largest alternative asset managers in the Middle East. Investcorp launched its first China-focused US dollar fund in 2018, allocating $483 million to invest in growth-stage technology companies in China, including iQiyi.
- NetEase Cloud Music
- NetEase Cloud Music is a Chinese music streaming platform. Investcorp, a Middle Eastern alternative asset manager, invested in NetEase Cloud Music through its first China-focused dollar fund, launched in partnership with Everbright Securities. This investment reflects Investcorp's strategic focus on leading technology companies in the Chinese market.
- China Resources Capital
- China Resources Capital partnered with Investcorp and Fung Group in November 2019 to establish a $500 million Asian food fund. This fund focuses on premium brands in flavorings, packaged foods, and healthy snacks, and has invested in consumer businesses like Mo Xiaoxian.
- Fung Group
- The Fung Group collaborated with Investcorp and China Resources Capital in November 2019 to establish a $500 million Asian food fund focusing on premium brands in the seasoning, packaged food, and healthy snack sectors. In 2022, the Fung Group's private investment platform in Hong Kong also partnered with Investcorp to form a $500 million fund targeting growth-stage enterprises in the Greater Bay Area.
- MoxiaoXian
- MoxiaoXian (莫小仙) is a consumer enterprise that received investment from the Asian Food Fund, established by Investcorp in partnership with China Resources Capital and Fung Group. This fund, launched in 2019 with a size of $500 million, focuses on high-end brands in sectors such as seasonings, packaged foods, and healthy snacks.
- Ligia Foods
- Ligia Foods is a consumer enterprise that received investment from the Asia Food Fund, co-founded by Investcorp, a major alternative asset manager in the Middle East. The fund, established in 2019 with a focus on premium brands in condiments, packaged foods, and healthy snacks, exemplifies Investcorp's growing interest in the Chinese consumer market.
- Weichi Pinshi Group
- Weichi Pinshi Group is a consumer enterprise that received investment from the Asia Food Fund. This fund, established in 2019 with a size of 500 million USD, is a collaboration between Investcorp, China Resources Capital, and Fung Group, focusing on high-end brands in areas such as condiments, packaged foods, and healthy snacks.
- Hao Yue Capital
- Hao Yue Capital (浩悦资本) is a Chinese healthcare-focused investment fund. Investcorp, a major alternative asset manager from the Middle East, is a limited partner (LP) in Hao Yue Capital.
- LinkDoc
- LinkDoc (领健) is a healthcare project that Investcorp, one of the largest alternative asset managers in the Middle East, directly invested in as a General Partner (GP). This investment highlights Investcorp's significant focus on the healthcare sector within the Chinese market.
- Kindstar Global
- Kindstar Global is one of the leading projects in which Investcorp has directly invested in the healthcare field.
- WeDoctor
- The provided article does not contain information about WeDoctor. Therefore, I cannot provide an 80-word summary of WeDoctor based on the given text.
- Lu Daopei Medical Group
- Lu Daopei Medical Group is a leading Chinese healthcare firm that has received direct investment from Investcorp, one of the Middle East's largest alternative asset managers. Investcorp has strategically invested in influential healthcare projects in China, including Lu Daopei Medical Group, reflecting a growing interest from Middle Eastern capital in China's rapidly developing healthcare sector.
- Shandong Jiano Electronics
- Shandong Jiano Electronics is a Chinese new energy vehicle power management system supplier. In May 2023, Investcorp, a major alternative asset manager in the Middle East, acquired Shandong Jiano Electronics for approximately $100 million. This marked Investcorp's first buyout transaction in China, signifying a shift in its China strategy from financial investments to controlling acquisitions.
- Starbucks China
- Multiple major private equity firms have expressed interest in acquiring Starbucks China. BlueFive Capital, in collaboration with HOPU Investments, has submitted a proposal for the acquisition. This information circulated in late February 2025. Other interested parties include Hillhouse Capital, FountainVest Partners, China Resources Capital, and KKR.
- Hillhouse Capital
- Hillhouse Capital is among the top private equity firms interested in acquiring Starbucks China. The firm, along with others like FountainVest Capital and KKR, has reportedly submitted acquisition proposals to Starbucks China. This indicates Hillhouse Capital's interest in the Chinese consumer market, alongside other prominent investment firms.
- FountainVest Partners
- FountainVest Partners is a prominent private equity firm in China. They are among several leading private equity institutions, including Hillhouse Capital and KKR, that have shown strong interest in acquiring Starbucks China. This indicates their active involvement in significant investment opportunities within the Chinese market.
- China Resources Holdings
- China Resources Holdings is reportedly among the major private equity firms interested in submitting an acquisition proposal for Starbucks China. This indicates their active involvement and interest in significant investment opportunities within the Chinese market, aligning with the broader trend of increased capital flow and strategic partnerships.
- KKR
- KKR is among several top private equity firms, including Hillhouse Capital, FountainVest Capital, and China Resources Holdings, that have shown strong interest in acquiring Starbucks China. It submitted an acquisition proposal for Starbucks China.
- Oliver Wyman
- Oliver Wyman is mentioned as a firm whose partner, Ben Simpfendorfer, spoke about the shifting investment trends of Middle Eastern capital. Simpfendorfer highlighted that Middle Eastern investors, traditionally focused on Western markets, are now increasingly looking towards Asia, particularly China, due to geopolitical changes and China's technological advancements.
- March 2008：
- Fang Fenglei co-founded Hopu Investment Management Company.
- September 2018：
- Investcorp partnered with China Everbright Limited to launch its first U.S. dollar-denominated fund focused on China, totaling $483 million.
- November 2019：
- Investcorp signed a fund cooperation agreement with China Resources Capital and Fung Group to launch the Asia Food Fund ($500 million) targeting China's consumer sector.
- 2020–2025：
- The relationship between the Middle East and China experienced a significant qualitative leap from a commodity trade model to more strategic investment, particularly in innovative sectors.
- 2022：
- Interactions and two-way investment flows between Chinese companies/institutions and their Middle Eastern counterparts began steadily increasing.
- 2022：
- Investcorp and the Fung Family’s Hong Kong-based platform established a $500 million fund focusing on growth enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area.
- 2022–2024：
- The Public Investment Fund (PIF) allocated $6.6 billion to Asia, showing a much faster investment pace compared to previous years.
- May 2023：
- Investcorp completed its first acquisition deal in China by purchasing Shandong Jianuo Electronics for roughly $100 million.
- September 2024：
- Xia Benjia (Hazem Ben-Gacem) resigned as co-CEO of Investcorp.
- November 2024：
- Xia Benjia founded BlueFive Capital.
- End of 2024：
- BlueFive Capital was established.
- Recently (By early 2025)：
- BlueFive Capital completed its first strategic acquisition, purchasing Neo Capital. After acquisition, BlueFive's assets under management reached $650 million.
- End of February 2025：
- Reports emerged that Starbucks China was engaging with multiple potential investors, including BlueFive Capital and Hopu Investment.
- End of Q3 2025：
- Neo Capital will continue to operate independently until this point following its acquisition by BlueFive Capital.
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