If not for U.S. Treasury Secretary Geithner’s latest toxic asset rescue plan — which actually finally tickled the stock market — Abu Dhabi’s Aabar Investments’ $2.66B (9.1% stake) investment in Daimler AG would have been the headline of the day. Instead of “cash for trash,” Aabar and Daimler are investing in R&D in fuel-saving technology. Aabar is now Daimler’s leading shareholder ahead of the Kuwait Investment Authority (6.9%).

Bloomberg reports that Aabar has already transferred the money. Although dilutive, Daimler shores up its balance sheet. Meanwhile, along with return on its capital investment, Abu Dhabi is striving to learn from Daimler’s expertise as it aims to develop its own cleaner energy technologies. Gulf region sovereign wealth has perhaps wisely sat on the sidelines in recent months as it concerns casting more capital at Western banks, but let’s not forget there was also a sizable investment in chipmaker AMD by Abu Dhabi last October.

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