Korean autonomous driving technology has cleared its first regulatory hurdle for overseas export. As Middle Eastern nations including the United Arab Emirates and Saudi Arabia pursue self-driving initiatives as part of smart city development projects, Korean companies are accelerating their push into the region.
According to industry sources on May 26, autonomous driving startup Autonomous A2Z has secured the first-ever export approval for national core technology in the self-driving sector. Presidential officials including Ha Jung-woo, Senior Secretary for AI Future Planning, personally delivered the export approval certificate to the company's joint venture in Abu Dhabi, UAE. Autonomous driving is designated as national core technology by the Korean government and is strictly managed for technology security purposes. Prior approval from relevant authorities is required for any export of autonomous driving technology. Autonomous A2Z obtained the first export approval in the autonomous driving sector after undergoing review by the Ministry of Trade, Industry and Energy.
The company established an autonomous driving joint venture with Space42, a UAE-based AI and space technology firm, in November last year. With the export approval secured, Autonomous A2Z plans to gradually expand autonomous vehicle production, demonstration projects, and AI mobility business in the UAE. The company will deploy various retrofitted vehicles including its self-developed Level 4 autonomous vehicle "ROii" to the local market. Autonomous A2Z is targeting $7.6 million (approximately 11 billion won) in contracts from the UAE this year, with plans to generate $78 million (approximately 110 billion won) in local revenue by 2035.
Autonomous A2Z is not the only Korean autonomous driving company eyeing the Middle East market. Kakao Mobility recently signed a paid proof-of-concept contract to supply integrated mobility solutions for Saudi Arabia's "Diriyah Project" smart city development. While initially providing integrated parking lot operation and management solutions, the company plans to expand into autonomous driving business over the medium to long term. Mobiltech, a startup providing 3D spatial information solutions for AI-based autonomous driving and smart city construction, and StradVision, which developed camera-based autonomous driving object recognition software, are also targeting the Middle Eastern market through export contracts. Hyundai Motor signed a business agreement with Saudi Arabia's RSG in 2024 to demonstrate autonomous vehicle solutions at resorts being developed by RSG.
The IT industry's focus on the Middle Eastern autonomous driving market stems from the region's massive smart city projects incorporating AI, energy, and mobility as countries prepare for oil depletion. Saudi Arabia's Diriyah Project stands out as a prime example, with total project costs of $63 billion (approximately 90 trillion won) being invested to create infrastructure and urban development on a site 20 times the size of Seoul's Yeouido district. The UAE is also developing futuristic cities in Abu Dhabi and Dubai centered on eco-friendly energy and AI. Since entire urban infrastructure is being designed and built from scratch according to cutting-edge technology trends, this presents an excellent opportunity for companies to test and commercialize autonomous driving technology. Dubai has declared its intention to convert 25% of public transportation to autonomous vehicles by 2030.
Support from Middle Eastern sovereign wealth funds also enhances business stability. Autonomous A2Z's Abu Dhabi joint venture was launched in partnership with G42, a subsidiary of UAE sovereign wealth fund Mubadala. Kakao Mobility signed a business agreement with Diriyah Company, a subsidiary of Saudi Arabia's sovereign wealth fund. Following President Lee Jae-myung's state visit to the UAE in November last year, the Korean government's support for bilateral cooperation projects has enabled previously discussed initiatives to enter full implementation phase.
Industry observers noted that the absence of dominant positions by big tech companies such as Google, Tesla, and Baidu in the Middle Eastern market works in favor of Korean firms. "Big tech companies are primarily conducting autonomous driving business in their domestic markets in the US and China," said Han Ji-hyung, CEO of Autonomous A2Z. "If we enter third markets that big tech isn't paying attention to and implement Korean-style autonomous driving systems, it won't be easy for big tech companies to enter the Middle East as latecomers." He argued this represents an opportunity to establish regulations tailored to Korean companies in a Middle Eastern market where autonomous driving regulations are not as well-established as in Korea.
Another startup industry insider added, "Middle Eastern countries often choose Korean companies as collaboration partners after deliberating between Chinese and Korean firms. Whenever US-China tensions escalate, Middle Eastern countries inevitably have to consider both sides, and that's when Korea is favorably evaluated as a key business partner."