Middle Eastern Capital Bets Big on Chinese MedTech: Zai Lab Secures $230M Investment Amid Surge in Regional Healthcare Investments

Oct 19, 2025 19:18 CST Updated 19:18

Kangji

Supplier of Minimally Invasive Surgical Instruments and Consumables

Core Medical

Artificial Heart Series Product Developer

Zai Lab

Innovative Global Biopharmaceutical Company

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One of the largest sovereign wealth funds in the world,Middle Eastern sovereign wealth funds are expanding rapidly中Investment Landscape in China's Healthcare Sector。

Recently, a wholly-owned subsidiary of the Abu Dhabi Investment Authority became the core contributor to a single-asset continuation fund initiated by Lilly Capital.According to market sources close to the deal, the fundTotal scale is approximately 230 million US dollars (approximately 1.64 billion RMB),Special Investment in Zai Lab。

Data show that,Last year, 60% of global sovereign fund investments in China, amounting to $6 billion, came from the Middle East.Another 60%Middle East Sovereign Wealth FundMade a clear statement to increase investment in China over the next five years.

In the past six months, Middle Eastern capitalRepeatedly making moves in China's medical device field:A consortium led by the Qatar Investment Authority,HK$11.2 billion(Approximately14(Billion USD, 10 Billion RMB)Capture the Leading Position in Minimally Invasive SurgeryKangji Medical; Prosperity7 Ventures (P7), under Aramco Ventures, co-led the investment.Artificial Heart Field Company "Core Medical" Raises Over $100 Million (Approx. RMB 710 Million) in D-Round Financing.

Highlighting the "Post-Oil Era," the attractiveness of China's medical devices to Middle Eastern capital is increasingly growing.

The World's First Tumor Electric Field Therapy Product

Zai Lab Receives Innovative Medical Device Designation

Zai Lab (NASDAQ: ZLAB; HKEX: 9688) is an innovative biopharmaceutical company driven by research and development, with operations in the commercialization stage. Headquartered in China and the United States, the company also has a presence in the medical device field.

Recently, Zai Lab announced,Based on the positive results of the Phase 3 PANOVA-3 study, the National Medical Products Administration (NMPA) of China granted the innovative medical device designation to Tumor Treating Fields (TTFields) for pancreatic cancer patients.This designation allows TTFields to be reviewed under the special review process for innovative medical devices, thereby accelerating the product's market registration process.

Rafael G. Amado, M.D., President of Zai Lab and Head of Global R&D, said: "We are very pleased that TTFields have been granted the Innovative Medical Device Designation by the National Medical Products Administration (NMPA), qualifying for an expedited review. This designation also allows us to submit a marketing application in China before approval in the country of origin. Pancreatic cancer remains one of the most challenging cancers globally, with approximately 134,000 new cases annually in China alone. We aim to submit a registration application in China in the second half of 2025 and look forward to maintaining close collaboration with the NMPA throughout the review process."

Zai Lab Previously Also Obtained Innovative Medical Device Designation.In August 2019, the National Medical Products Administration granted TTFields for newly diagnosed and recurrentGlioblastomaInnovative Medical Device Designation for GBM.Zai Lab subsequently submitted an application for listing in September 2019 and was approved in May 2020. It is reported thatOptune® is the first therapy approved in China in 15 years for glioblastoma, benefiting over 3,000 glioma patients in China.

Optune® is the trade name in China for the Tumor Treating Fields (TTFields) therapy developed by the Israeli company Novocure, mainly used forTreatmentRecurrent and newly diagnosed glioblastoma. In 2018, Zai Lab became the exclusive commercialization and development partner of Novocure in Greater China.According to Novocure's financial report, Zai Lab paid 15 million US dollars for this exclusive licensing cooperation. Including subsequent R&D support and other expenses, the total amount will reach 78 million US dollars, with royalties of approximately 10% to 15% of net sales.

The world's first tumor electric field therapy product, Optune

Tumor Treating Fields (TTFields) is a cancer therapy that applies physical forces through multiple mechanisms to kill cancer cells. TTFields do not significantly damage healthy cells because there are fundamental differences between healthy tissues and cancer cells (including division rate, morphology, and electrical properties).

Tumor Treating Fields (TTFields) utilize multiple mechanisms that work together to target and kill cancer cells. This multi-mechanism synergy allows TTFields to be combined with existing treatment modalities in approved indications. Preclinical models have shown that combining TTFields with chemotherapy, radiotherapy, immune checkpoint inhibitors, or targeted therapy enhances efficacy across various solid tumors. The clinical versatility demonstrated by this therapy may help address a range of challenges in the treatment of solid tumors.

This recent significant investment in Zai Lab not only demonstrates the deep recognition of Middle Eastern capital towards the Chinese market but also reflects particular attention to the healthcare sector.。

Capture China's Largest Minimally Invasive Surgical Instrument Platform

Achieved the Largest Financing for China's Innovative Medical Devices This Year

Apart from Zai Lab, in the medical device field, Middle Eastern capital has also made significant moves in the past six months.

8Month12Daytime and Evening，Suspended for nearly a monthLeader in China-produced minimally invasive devicesKangji Medical Holdings Limited (hereinafter referred to as"Kangji Medical"Publication of Announcement,Officially announced the privatization plan. A consortium led by TPG Inc. and the Qatar Investment Authority valued Kangji Medical at approximately HK$11.2 billion (US$1.4 billion).

As the largest supplier of minimally invasive surgical instruments and consumables in China, Kangji Medical has a clear and well-defined strategic plan for the international market. The Middle East and Africa are crucial components of Kangji's international market strategy, with business collaborations already established in Saudi Arabia, Turkey, Israel, Bahrain, Jordan, Lebanon, the UAE, Egypt, and South Africa.

In addition, in April this year, Core Medical, a company in the artificial heart field, completed a D-round financing of over 100 million US dollars.This round of financing was jointly led by Prosperity7 Ventures (P7) and other well-known industry investors.The funds raised will be used for innovative product development and to promote the company's international strategic layout. This is also the largest financing in China's innovative medical device sector in 2025.

Prosperity7 Ventures (P7) is a diversified growth fund under Aramco Ventures,隶属于全球领先的综合能源和化工企业沙特阿美. The P7 fund规模达30亿美元，并在沙特阿拉伯、中国和美国均设有投资团队。

Investment in China Reaches a New High

The Attractiveness of Medical Technology is Increasing

Middle Eastern sovereign wealth funds have rapidly risen through oil wealth, becoming a core force in the global capital market. As of 2024, their total scale reached $4.76 trillion. Institutions such as the Saudi Public Investment Fund and the Abu Dhabi Investment Authority rank among the top ten globally.

In recent years, the trade scale between China and the Middle East has rapidly expanded. In the first half of 2025, the goods trade volume between China and the Middle East reached $247.98 billion, a year-on-year increase of 2.5%, with the trade surplus with the Middle East approaching a near-decade high.At the same time, facing downward pressure on oil prices,Sovereign Wealth Funds in Gulf States Accelerate Economic Structural Transformation. China's Frontier Industries Become a Hotspot for Middle Eastern Investments.

2023YearTo date, Middle EastCountries'Sovereign Wealth Funds Significantly Expand Investment Scale in China。Sovereign Wealth Funds of Middle Eastern Countries in 2024: Investments in ChinaInvestment in ChinaTotalForeheadAlreadyBreakthrough$9 billion, hitting a record high. This trend inFurther acceleration in 2025, with investments from Middle Eastern sovereign funds in China surging in the first half of 2025 alone.400%, mainly invested in strategic emerging industries such as the digital economy, clean energy, and healthcare.

According toInvesco（Invesco) Recently Released2025Global Sovereign Asset Management Research Report Shows China's Most Attractive Investment Areas Include Digital Technology and Software, Advanced Manufacturing and Automation, Clean Energy and Green Technology, andHealthcare and Biotechnologyetc. It can be said that the transformation momentum of Middle Eastern countries and the urgent need for Chinese medical device industry to expand global market have achieved a win-win situation. Subsequently, who will seize the opportunities in the investment boom? Instrument Family will continue to follow up.

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