Perhaps the greatest evidence that petroleum-powered vehicles are on the way out, the United Arab Emirates – the world’s third-largest oil producer – has purchased a 4 percent stake in electric vehicle maker Tesla by way of Germany’s Daimler.
According to Reuters, Aabar – an investment fund wholly owned by the government of Abu Dhabi, the capital of the UAE – has purchased a 4 percent stake in Tesla from Daimler. Abu Dhabi is looking for new ways to diversify its wealth as the country’s oil reserves are set to run out in the coming years.
“It’s a small percent but the issue is more psychological,” Aabar Chairman Khadem Al Qubaisi told Reuters.
Despite its large carbon footprint, the UAE is pushing towards a cleaner future and has even invested $22 billion in a revolutionary carbon neutral city setup to support 50,000 residents. The UAE was also recently named the home of the International Renewable Energy Agency.
Daimler purchased about a 10 percent stake in Tesla last May for $50 million, indicating the Aabar deal is worth at least $20 million. Aabar is no stranger to investment deals with Daimler as the Gulf fund purchased a 9.1 percent stake in the German automaker last March.
