Luckin Coffee is actively evaluating an expansion into the Persian Gulf, driven by a new strategic investment from Abu Dhabi’s Mubadala. The move signals the Chinese coffee chain’s intent to re-enter the Middle Eastern market, a region it had previously targeted in 2019 but abandoned following a significant accounting scandal that led to its bankruptcy filing and delisting from Nasdaq.
According to an exclusive interview with CNBC, David Li, co-founder of Centurium Capital and Chairman of Luckin, confirmed that senior management is exploring entry into Gulf countries. Li noted that the company is assessing various regional opportunities as part of its ongoing overseas expansion strategy.
This renewed focus on the Middle East comes shortly after Mubadala and Centurium announced a joint investment of approximately $1 billion in Luckin in early September. While the specific equity stakes were not disclosed, Mubadala, a sovereign wealth fund with a portfolio valued at $385 billion, has previously allocated over $20 billion to various Chinese enterprises, including Shein and Dalian Wanda.
Jinyi Guo, CEO of Luckin, cited the region’s consistent demand for coffee and a growing consumer preference for low-sugar, health-conscious beverages as key drivers for the expansion plans. With Centurium’s support, Luckin has undergone a major financial turnaround, surpassing Starbucks to become the largest coffee chain in China by sales volume. Additionally, Centurium expanded its coffee portfolio in April by acquiring Blue Bottle Coffee from Nestlé for a reported sum of less than $400 million.
Luckin’s shares, currently trading over-the-counter, value the company at approximately $9.6 billion. This valuation sits below the $13 billion figure that Starbucks attributed to its China business operations when it sold its controlling stake to Boyu Capital in November 2025. Luckin is also pursuing a relisting on the U.S. mainboard, a process that requires Chinese regulatory approval and lacks a definitive timeline.
Relisting on US markets again? Bold move. Hope their accounting transparency is truly fixed this time.
The timing feels right given the Mubadala backing. $1B is no small commitment from Abu Dhabi.
Blue Bottle acquisition is smart. They have some solid branding experience to leverage internationally.
Finally! I’ve been hoping a Chinese brand would bring more variety to our local coffee scene here in Dubai.
I wonder if they’ll face the same regulatory hurdles this time around after their previous scandal.