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The evolution of autonomous vehicle (AV) technology has catalyzed a new era in urban mobility, with mainland Chinese robotaxi companies emerging as global leaders. As domestic competition intensifies and profitability remains elusive in mainland China, firms like Baidu’s Apollo Go, WeRide and Pony.ai are accelerating their international expansion, marked with recent actions in the Middle East.

Why the Middle East may be a strategic launchpad for driverless taxis

A unique mix of regulatory openness, government support and economic incentives for automation makes the Middle East a strategic beachhead for global ambitions. While US firms like Waymo have not targeted this region for robotaxi expansion, others are looking to scale their driverless taxi operations across the Gulf states, especially in the United Arab Emirates (UAE) and Saudi Arabia.

UAE initiatives driving autonomous vehicle adoption

The Middle East—and the Gulf region in particular—has become a magnet for mainland Chinese robotaxi companies, drawn by streamlined regulatory processes and strong government support. Dubai aims for 25% of all trips to be driverless by 2030 under its Smart City Vision, and Abu Dhabi is expanding sustainable transport options through its Transportation Mobility Management Strategy. In 2023, Abu Dhabi launched the Smart and Autonomous Vehicles Industry (SAVI) cluster to accelerate smart and AV development. SAVI believes the development of AVs could add up to AED 120 billion (US$32.67 billion) to the economy and create nearly 50,000 jobs.

Similarly, Saudi Arabia's Vision 2030 initiative plans for 15% of public transport vehicles to be autonomous by 2030 as part of its push for smart, sustainable cities. The country also launched the Future Mobility Sandbox, an AV testing area at the King Abdullah University of Science and Technology.

Additionally, Middle East investment is helping mainland Chinese robotaxi operators enter the market. Pony.ai, for example, received US$100 million from NEOM, Saudi Arabia’s futuristic city project, in 2023. High labor costs and growing ride-hailing services further boost robotaxi viability in the Gulf.

Key players in Middle East robotaxi development

WeRide: Deploying self-driving taxis in UAE and Saudi Arabia

WeRide is set to reach a key milestone in the UAE in 2025 with the planned deployment of driverless vehicles on public roads. In April 2025, it partnered with Uber and Dubai's Roads and Transport Authority (RTA) to launch robotaxi trials with safety drivers this year, targeting full driverless operations by 2026.

Additionally, WeRide began fully driverless robotaxi trials in Abu Dhabi, serving and Al Reem Islands, alongside existing operations on Yas Island, Saadiyat Island and near Zayed International Airport.

In May 2025, WeRide entered the Saudi Arabian market, launching robotaxi tests and deployments in Riyadh and Al-Ula. Supported by the Transport General Authority, trials will soon be available via Uber, with full commercial service expected by late 2025. WeRide has also been testing its robobus in key locations, including King Fahad Medical City, and introduced the robosweeper S1 there, the region's first monetized autonomous sanitation project.

Apollo Go: Baidu’s ambitious robotaxi fleet plans

In March 2025, Baidu’s Apollo Go partnered with Dubai’s RTA to launch its first international fleet outside mainland China and Hong Kong.The plan is to deploy 100 fully autonomous RT6 robotaxis by the end of 2025, scaling to at least 1,000 by 2028. Apollo Go also teamed with Autogo in Abu Dhabi, aiming to build the city’s largest fully driverless fleet by 2026. Initial trials are under way, with phased expansion planned before full commercial operations.

In July 2025, Baidu partnered with Uber Technologies to integrate thousands of its Apollo Go robotaxis into Uber’s platform. The first Uber deployments are expected in Asia and the Middle East later this year.

Pony.ai: Building smart infrastructure for driverless fleets

In 2023, Pony.ai became a part of Abu Dhabi’s SAVI cluster, enabling it to test its AV technologies at the Yas Island testing facility. Backed by a US$100 million NEOM investment, Pony.ai formed a joint venture to develop and deploy AVs and smart infrastructure in NEOM and other key markets in the Middle East and North Africa region. Recently, the company signed a memorandum of understanding with Dubai’s RTA to roll out its advanced robotaxi fleet, starting with supervised trials in late 2025 and a goal of launching fully driverless operations by 2026.

Development opportunities and challenges facing robotaxi services

Baidu’s Apollo Go, WeRide and Pony.ai have formed key partnerships and obtained regulatory approvals in the UAE and Saudi Arabia, seeking to deploy fleets and integrate into local mobility ecosystems. Their expansion is driven by the desire for scale, new revenue opportunities and favorable regulatory conditions.

Challenges facing autonomous car and robotaxi development in the Middle East and elsewhere include technical adaptations, operational complexities, geopolitical uncertainties, and ongoing investment needs. The next 18 to 24 months will be crucial as companies strive to demonstrate commercial viability, achieve operational excellence and lay the groundwork for expansion into larger, more complex markets.

The goal is for Middle East operations to inform and accelerate development in mainland China, based on the belief that regional differences are outweighed by similarities—and that technological development in one market can reinforce growth in others.

S&P Global Mobility Autonomy Forecasts points to major growth

S&P Global Mobility’s most recent Autonomy Forecasts describes the automotive industry trend toward autonomy. We project ride-hailing vehicle sales in mainland China could reach about 413,000 units in 2035, while personally owned autonomous vehicles sales could reach 1.5 million. If realized, autonomous vehicles could account for 6.6% of light-vehicle sales in China in 2035.

Success for mainland Chinese robotaxi firms in the Gulf could validate a global expansion model that might transform the future of mobility. However, the region alone may lack the scale for profitability in these capital-intensive ventures. Continued development in China, the US and Europe remains essential.

Track automotive industry developments around the globe

Tracking how these developments unfold both in the Middle East and in core markets like China, the US, and Europe will be critical to understanding the trajectory of autonomous mobility. S&P Global Mobility’s AutoIntelligence suite delivers the timely context and data-driven forecasts that you need to stay informed.

This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.


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