China/Oman/UAE • Chinese fab entrepreneur wooing Oman pursued in Dubai courts by ex-investor

Chinese entrepreneur Chao Yi-Long, who has been publicly courting Omani officials for backing of a proposed semiconductor fab, is facing legal action in Dubai brought by a former Abu Dhabi business partner, legal filings show. The dispute relates to an earlier semiconductor venture in the UAE that Chao and his partner developed under the Cosmico Ltd banner near Khalifa Port and subsequently abandoned after government-commissioned due diligence flagged concerns.

"abandoned a similar project in the UAE after government-commissioned due diligence raised concerns."

Details from court papers and company presentations indicate the UAE project included a design rendering dated 29 May 2024 for a facility Cosmico planned to build with local and Chinese partners near Khalifa Port. The matter escalated last year when Chao's Emirati partner filed an official legal warning against him; that partner has since pursued formal proceedings in Dubai courts. Sources familiar with the filings say the dispute centers on commitments, representations and the handling of investor relations tied to the stalled Abu Dhabi scheme.

What is at stake

• Entrepreneur: Chao Yi-Long, a Taiwan-born founder associated with Cosmico Ltd and active in outreach to Muscat for a Dhofar semiconductor plant.
• Previous project: A proposed UAE fab near Khalifa Port, with project materials including a Cosmico presentation dated 29 May 2024.
• Financial scale: Documents show Muscat nearly agreed to allocate up to $250 million toward Chao's proposed semiconductor project in Oman before concerns emerged.
• Legal action: An Emirati business partner filed an official legal warning against Chao last year and has since taken the dispute to Dubai courts.

The legal challenge comes as Chao pursues much larger financing in Oman, where government statements last year announced intentions to build a semiconductor plant in Dhofar Governorate with outside investors. Reporting on the Oman pitch noted that Chao invited an expanded delegation to a key 2025 meeting — allegedly including individuals with limited or no tech background — in an apparent effort to bolster the perceived depth of his start-up. That approach, combined with the prior due diligence findings in the UAE, has reportedly left prospective backers in Muscat cautious.

Observers point to the broader sensitivity around semiconductor investments in the Gulf: partnerships with Chinese-linked entrepreneurs draw heightened scrutiny given the strategic nature of the technology and geopolitical concerns. Chao has been described in documentation as having close connections to Beijing despite a limited track record in semiconductor manufacturing. The earlier UAE due diligence and the subsequent legal warning have become focal points for those evaluating his credibility as a lead partner for large-capex fabs.

Outlook

The Dubai court action is likely to complicate Chao's fundraising and partnership efforts in Oman, where nearly $250 million in commitments were at one point close to being signed. If the Emirati case uncovers contractual breaches or misrepresentations, it could deter institutional or sovereign investors from committing to a billion-dollar buildout. Conversely, a resolution in Chao's favor would remove a prominent obstacle and could accelerate talks in Muscat, though potential investors will almost certainly demand more rigorous third-party due diligence and stronger contractual protections going forward.