Luckin Coffee Eyes Persian Gulf Expansion After $1 Billion Investment

Luckin Coffee is considering entering Persian Gulf markets to capitalize on stable coffee demand and a growing preference for health-oriented drinks. The potential expansion follows a $1 billion joint investment made in early September by Abu Dhabi's sovereign wealth fund, Mubadala, and the private equity firm Centurium Capital.

The Xiamen-based chain has undergone a significant turnaround, surpassing Starbucks as the largest coffee chain in China by sales. While focusing on the Gulf region, the company is also expanding its presence in Singapore and Malaysia and maintains a small footprint in New York City.

Chairman David Li confirmed the company is looking at potentially entering the region. Separately, the company is seeking approval from Chinese regulators to relist on a U.S. mainboard, though a clear timeline for the relisting has not been established.