Chinese EV maker NIO is set to raise another $2.2 billion from CYVN Holdings, an investment vehicle majority-owned by the Abu Dhabi Government, according to an exchange filing on Monday evening. 

The deal is expected to close in the last week of December. Upon closing, CYVN will own approximately a 20.1% stake in NIO, per the filing. 

The investment comes five months after CYVN Investments RSC — CYVN Holdings’s affiliate — pumped $738.5 million into Nio in July. Alongside the equity investment, the Abu Dhabi-based firm also acquired NIO shares from Tencent Holdings for $350 million.  

“…With the enhanced balance sheet, NIO is well prepared to sharpen brand positioning, bolster sales and service capabilities, and make a long-term investment in core technologies to navigate the intensifying competitive landscape, while continually improving execution efficiency and system capabilities,” said William Bin Li, founder, chairman and chief executive officer of NIO said in a release. 

CYVN Holdings, which invests in smart and advanced mobility solutions, is an Abu Dhabi-based specialist investment vehicle.

The investment reflects the growing interest among Chinese electric vehicle players charting plans in the MENA region, which has emerged as a favourable business location amid rising geopolitical tension between China and the US. 

In November, Chinese premium electric vehicle brand BeyonCa signed a memorandum of understanding (MoU) with Riyadh-headquartered conglomerate Al Faisaliah Group Holding Company to bring “substantial investment” into the Renault-backed EV brand.

NEOM, the smart and sustainable regional development in northwest Saudi Arabia, also injected $100 million into autonomous driving firm Pony.ai via its strategic investment arm NEOM Investment Fund in October. The capital injection came after the firm clinched the first tranche of its Series D funding round in March 2022 at a valuation of $8.5 billion.