Gulf petroleum countries are at a critical juncture in their energy transition, focusing on new technologies like smart driving from Chinese companies. As the Middle East provides significant capital amidst a “capital winter,” these regions have become lucrative expansion points for Chinese firms like Hongjing Zhijia, which showcased its hydrogen-powered trucks at Saudi Arabia’s Tecshift Summit. Chinese tech companies like Horizon Robotics, Quicktron, and Lightyear were among the exhibitors at the summit, indicating a growing Chinese presence in the region [para. 1][para. 2].
Saudi Aramco’s venture capital arm, Prosperity7 Ventures, has heavily invested in Horizon Robotics, who also signed a strategic cooperation memorandum with Aramco. This collaboration includes deploying hydrogen-powered trucks within Aramco’s logistics division, integrating smart transportation systems into Saudi Arabia’s infrastructure, and potentially assembling vehicles locally [para. 3][para. 4].
The Chinese intelligent driving company Pony.ai received a significant $100 million investment from Saudi Arabia’s NEOM Investment Fund. The investment aims to establish a joint venture for developing autonomous taxis in the Middle East. Companies like WeRide are also venturing into Saudi Arabia, illustrating the Gulf’s growing interest in autonomous technology from China. Moreover, UAE’s partnership with Pony.ai and WeRide’s initiatives in Abu Dhabi further underscore the region’s push towards autonomous driving technology [para. 5][para. 6].
The China-UAE Joint Investment Fund has invested in companies like WeRide and Pony.ai, highlighting the strategic importance of these technologies in the region. WeRide’s innovative projects include the launch of the first autonomous taxi service in Abu Dhabi and road testing permitted under a nationwide license in the UAE [para. 7][para. 8][para. 9].
Middle Eastern nations are developing strategy plans to increase the adoption of autonomous driving by 2030, such as Saudi Arabia’s “National Transport and Logistics Strategy.” These strategies aim to enhance the contribution of transport and logistics to their economies [para. 10][para. 11]. Various agreements with global tech firms, such as with the L4 autonomous vehicle firm Navya and Estonian company Clevon, highlight the proactive steps taken by Saudi Arabia [para. 12].
Saudi Arabia’s TASARU Mobility, a venture under the Public Investment Fund (PIF), invests in global firms in the autonomous driving sector, aiming to expand Saudi Arabia’s automotive production capacity. It collaborates with various tech firms globally, including Recogni Inc. and Croatian autonomous firm P3 [para. 13].
Investments are not solely financial; Gulf capital aims for long-term technological partnerships, often requiring invested companies to reinvest locally by building factories or R&D centers. China’s technological edge in smart driving makes it a favorable partner for these Gulf investments. Companies like Human Horizons have signed MoUs with Saudi Arabia’s Ministry of Investment, reflecting the potential yet cautious market [para. 14][para. 15].
Local development initiatives like Dubai’s plan for autonomous transport also reflect the Middle East’s growing focus on smart transportation solutions. Dubai collaborates with international firms and local enterprises to promote the development of autonomous technologies [para. 16][para. 17].
Therefore, Chinese companies are poised advantageously to capitalize on Middle Eastern nations’ strategic need for technological innovation, given their robust supply chain and adaptability to local markets. As a result, Gulf countries continue to channel investments into high-tech Chinese enterprises aiming to fulfill their energy transition and tech advancement goals [para. 18][para. 19].
AI generated, for reference only