Al Futtaim invests in BYD’s bumper share sale: UAE’s Al Futtaim Family Office invested an undisclosed amount in Chinese EV giant BYD’s USD 5.6 bn share sale, which marked the largest equity follow-on offering in the automotive sector in the past ten years, Reuters reports. Al Futtaim was a “key investor” in the share sale, the newswire added.

The breakdown: The investment will see Al Futtaim become a “strategic partner” of BYD’s, with a focus on expanding the presence of both entities within the sustainable transportation and advanced technologies markets, according to a press release (pdf). The two companies plan to explore potential cooperation on logistics, aftersales support, financial solutions, autonomous driving, energy storage systems, and localized production.

The Dubai-based conglomerate has been ramping up its investments in sustainable mobility, with Al Futtaim Automotive planning to make hybrid and electric cars account for at least 50% of its UAE sales by 2030. It supplied e& last year with 100 EVs for its fleet in January 2024.

BYD aims to use the investment for research and development, expanding its overseas operations, and boosting its working capital, among other initiatives. The investment aligns with its goal of selling 5-6 mn vehicles this year.

ICYMI- An Abu Dhabi government delegation explored potential investment oupportiunities with BYD during a visit by an economic delegation to China last week, aiming to capitalize on available investment opportunities.

Tags: