Luckin Coffee eyes Gulf expansion after US$1B Mubadala investment

UAE – Luckin Coffee is considering expansion into Persian Gulf markets after Abu Dhabi sovereign wealth fund Mubadala became a direct investor in the Chinese coffee chain. 

Luckin Chairman David Li said senior management is assessing potential new markets, including countries in the Gulf region. 

“There are other markets we are currently looking at [and] potentially entering into regions like Gulf countries,” Li told CNBC in an interview. 

Mubadala invested alongside controlling shareholder Centurium Capital in a transaction valued at approximately US$1 billion. The two investors have not disclosed their respective stake sizes. Mubadala manages a US$385 billion portfolio and has invested more than US$20 billion in China. 

Luckin previously planned to expand into the Middle East and India in 2019, but those plans did not materialise. The company later faced an accounting scandal involving fabricated sales, resulting in a US bankruptcy filing and its delisting from Nasdaq. 

The Gulf is now being assessed as part of Luckin’s international expansion strategy. CEO Jinyi Guo told CNBC that the region offers stable, frequent coffee consumption and growing demand for lower-sugar, health-oriented beverages. 

Luckin has expanded beyond China in recent years, including in Southeast Asia. Its Singapore operations have reached 100 outlets, with the company saying more than 1.9 million purchasing customers have used its stores since entering the market in 2023. 

Mubadala said Luckin operates a technology-driven retail model supported by digital customer engagement, product innovation and integrated supply chain capabilities. As of June 30, 2026, Luckin operated more than 36,000 stores globally, with cumulative transacting customers approaching 500 million. 

The investment also strengthens Centurium’s involvement in the coffee sector. The private equity firm acquired premium coffee brand Blue Bottle Coffee from Nestlé in April for a reported amount below US$400 million. 

Luckin has also indicated plans to return to a US mainboard listing. Guo previously said the company was “actively pushing the process of relisting on a U.S. mainboard”, although Chinese regulatory approval remains necessary and no firm timeline has been established. 

The company’s latest international review comes as Luckin continues to expand its store network and develop its technology-led retail model outside mainland China. 

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