Korean autonomous driving technology is zeroing in on the Middle East market. This comes as the sector achieved its first-ever export approval for overseas markets. With autonomous driving projects advancing as part of smart city development in the United Arab Emirates and Saudi Arabia, Korean companies are accelerating their push into the region.
Autonomous Driving Technology Receives First Export Approval
Autonomous driving startup Autonomous A2Z has secured the first-ever export approval for national core technology in the autonomous driving sector. Presidential officials, including Ha Jung-woo, Senior Secretary for AI and Future Planning, personally delivered the export approval certificate to a local joint venture in Abu Dhabi, UAE. Autonomous driving is designated as national core technology by the government and is strictly managed for technology security purposes. Prior approval from relevant authorities is required for exports of autonomous driving technology. Autonomous A2Z obtained the first export approval in the autonomous driving sector after 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 tech company, 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 also deploy various modified vehicles, including its self-developed Level 4 autonomous vehicle "ROii," in the local market. Autonomous A2Z aims to secure $7.6 million (approximately 11 billion won) in contracts in 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 (PoC) contract to supply integrated mobility solutions for the "Diriyah Project," a smart city development initiative in Saudi Arabia. While the company will initially provide integrated parking management solutions, it plans to expand into autonomous driving business over the medium to long term.
Nota is also targeting the Middle East market after signing a contract last April to supply an Intelligent Transportation System (ITS) to Dubai's Roads and Transport Authority in the UAE. The company successfully completed technology verification, achieving over 95% accuracy in road incident detection using ITS. Mobiltech, a startup providing 3D spatial information solutions for AI-based autonomous driving and smart city development, and StradVision, which developed camera-based autonomous driving object recognition software, are also expanding in the Middle East through export contracts with regional countries. Hyundai Motor Company also signed a memorandum of understanding with Saudi Arabia's RSG in 2024 to demonstrate autonomous vehicle solutions at resorts being developed by RSG.
Smart Cities Ideal for Autonomous Driving Demonstrations
The IT industry is focusing on the Middle East autonomous driving market because Gulf states are pursuing large-scale smart city projects featuring AI, energy, and mobility as they prepare for oil depletion. Saudi Arabia's Diriyah Project stands out, with total investment of $63 billion (approximately 90 trillion won) to develop infrastructure and urban areas on a site 20 times the size of Seoul's Yeouido district. The UAE is also building futuristic cities centered on eco-friendly energy and AI in Abu Dhabi and Dubai. Since entire city infrastructures are being designed and built to align with cutting-edge technology trends, this presents an excellent opportunity for companies to test and commercialize autonomous driving technology. Dubai has declared its goal 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 also signed a memorandum of understanding with Diriyah Company, a subsidiary of Saudi Arabia's sovereign wealth fund. Additionally, 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 initiatives that had remained in discussion stages to enter full implementation.
Industry observers noted that the absence of dominant positions by big tech companies such as Google, Tesla, and Baidu in the Middle East market works in favor of Korean companies. "Big tech companies primarily operate their autonomous driving businesses in the U.S. and Chinese domestic markets," said Han Ji-hyung, CEO of Autonomous A2Z. "If we enter third markets that big tech companies are not focusing on and establish Korean autonomous driving systems, it won't be easy for them even if they enter the Middle East as latecomers." This represents an opportunity to establish regulations tailored to Korean companies in a Middle East market where autonomous driving regulations are not as established as in Korea.
Another startup industry official added, "Middle Eastern countries often deliberate between Chinese and Korean companies before choosing Korean companies as collaboration partners. Whenever U.S.-China tensions escalate, Middle Eastern countries inevitably have to consider both sides, and this is when Korea is favorably evaluated as a major business partner."