UAE-based Al-Futtaim Family Office strengthens ties with Chinese EV giant as BYD accelerates global expansion
HONG KONG, March 4, 2025 – The Al-Futtaim Family Office, one of the UAE’s prominent investment entities, has joined Chinese electric vehicle (EV) maker BYD Co. as a strategic investor in the company’s record-breaking Hong Kong share sale. BYD raised HK$43.5 billion (approximately $5.6 billion) in Hong Kong’s largest initial public offering (IPO) in nearly four years, offering 129.8 million shares at HK$335.20 each.
The price represents a 7.8% discount to Monday’s closing price and falls at the lower end of the marketed price range, yet the offering was oversubscribed multiple times. This transaction not only underscores BYD’s ongoing success in the EV sector but also highlights its growing partnership with Al-Futtaim, a collaboration set to transition into a broader strategic alliance, focusing on new energy vehicles and other areas of mutual interest.
A Record-Breaking Sale to Fuel Global Expansion
BYD’s latest equity sale comes at a pivotal time for the company, following a significant surge in both domestic and international sales. The Shenzhen-based automaker saw a 161% year-on-year increase in sales of pure electric and hybrid vehicles last month, with more than 318,000 units sold. Overseas sales also hit new highs, with 67,025 units sold in international markets.
The funds raised from this equity financing will help BYD accelerate its global expansion, with plans to further invest in research and development, bolster its working capital, and support general corporate purposes. The transaction, which represents the biggest share sale in Hong Kong since Meituan’s $10 billion offering in 2021, signals a strong rebound in Chinese share sales after years of decline.
Strengthening Ties with the UAE’s Al-Futtaim Family Office
The participation of the Al-Futtaim Family Office as a strategic investor reflects the growing ties between the UAE and BYD. The family office, known for its diversified investment portfolio, aims to strengthen its footprint in the fast-evolving EV sector, aligning with BYD’s ambitions to lead the global transition to sustainable transportation.
Both companies plan to build on their existing collaboration, with a focus on advancing new energy vehicles and expanding market access. BYD’s focus on the Middle East and emerging markets aligns well with Al-Futtaim’s global investment strategy, which has already seen success across various sectors.
Shifting Global Strategies: Localizing Production and Expanding Market Reach
As part of its expansion strategy, BYD is actively working to localize production in key international markets, helping to mitigate risks from tariffs imposed on China-made EVs. Analysts, including Joanna Chen from Bloomberg Intelligence, noted that this move is critical for BYD as it accelerates its factory construction efforts overseas. Localized production will enable BYD to better navigate the complex geopolitical landscape and expand its presence in high-growth regions.
BYD’s production plans are already taking shape with the company targeting an ambitious sales goal of 6 million vehicles in 2025, a milestone that would place it on par with global giants such as General Motors. Expanding its footprint in markets from Southeast Asia to Australia, Japan, and Latin America, BYD is building factories and dealerships to support its growing consumer base.
Focus on Europe and R&D Innovation
In addition to expanding in Asia and the Americas, BYD has set its sights on Europe, where it plans to build a third manufacturing facility. The decision on its location is expected within the next 18 months, signaling the company’s commitment to making further inroads into the European EV market. BYD’s growth in the region will be supported by its ongoing investment in research and development, with the company recently launching advanced driver assistance systems (ADAS) as a standard feature across most of its vehicle models, including more affordable options.
With the growing demand for electric vehicles worldwide and the increasing global commitment to green energy, BYD’s vision for a more sustainable future is being realized through cutting-edge innovation and strategic partnerships.
The Future of BYD and Al-Futtaim’s Partnership
The Al-Futtaim Family Office’s strategic investment in BYD is just the beginning of a broader partnership that is expected to unfold in the coming years. Both companies are poised to capitalize on the growing global demand for electric vehicles, clean energy, and technological advancements in the automotive sector. As BYD continues to expand its production capacity, both in China and overseas, it will undoubtedly strengthen its position as a global leader in the EV market.
This partnership underscores Dubai and the UAE’s increasing role as a key player in the global automotive and clean energy sectors, further bolstering the region’s commitment to sustainable investment and innovation.
BYD’s strong performance and its alliance with the Al-Futtaim Family Office set the stage for a transformative era in the electric vehicle sector. With significant investments fueling expansion into new markets, BYD is well-positioned to lead the charge towards a cleaner, greener future in transportation.
