DUBAI, September 30, 2025: Fully autonomous vehicles (FAVs) could generate up to US$18.7 billion in economic value for Gulf Cooperation Council (GCC) countries by 2035, according to a new report from Strategy& Middle East, part of the PwC network. The global FAV market is forecast to reach US$182 billion in the same period, with the Gulf region expected to capture around 10 percent of that value. The report highlights the potential of autonomous transport technologies, including robo-taxis, robo-shuttles, robo-buses, and passenger drones, to reshape urban mobility across the region.
Gulf economies prepare for fully autonomous vehicle adoption at scale.
Robo-taxis are projected to be the most dominant segment, with an estimated US$10 billion market in the GCC alone by 2035, representing approximately 18 percent of the global market share for that category. Major infrastructure projects across the Gulf are already incorporating autonomous mobility into their masterplans. Saudi Arabia’s NEOM and the UAE’s ongoing smart city initiatives are actively piloting driverless transport systems. These projects feature dedicated lanes for autonomous vehicles, integrated mobility hubs, and regulatory environments that support testing and development.
According to Strategy& Middle East, the GCC’s national development plans and sovereign wealth funding are key enablers of the region’s early adoption. Projects under frameworks such as Saudi Vision 2030 and UAE Vision 2071 have prioritized investment in technology and transport innovation, placing the region in a strong position to deploy FAVs at scale. The report outlines three major thresholds that autonomous mobility must meet before it can be widely adopted: pilot readiness, commercial readiness, and scalability.
Gulf autonomous vehicle market set for major expansion
Pilot readiness refers to successful operation in controlled environments, commercial readiness involves reliable performance in real-world settings, and scalability marks full integration into transportation systems with public acceptance and financial viability. Infrastructure remains a critical focus. While GCC countries possess the financial capacity to support major transport upgrades, the report emphasizes the need for infrastructure alignment with future FAV requirements. Existing systems may require adaptation or modernization to support safe and efficient deployment of autonomous vehicles.
The report also calls for consistent government oversight, safety standards, and regulatory frameworks to ensure smooth integration. Recent developments point to an acceleration in autonomous mobility deployments. Chinese tech firm Baidu has announced plans to launch fully driverless robo-taxi operations in Dubai by early 2026, building on trials conducted with safety drivers. Another firm, Pony, has obtained operational permits in the UAE and aims to deploy 1,000 autonomous taxis across the region by 2028 in cooperation with local partners.
Safety, trust, and performance to drive public adoption
Dubai is also advancing autonomous logistics, with authorities preparing to roll out self-driving trucks on five key routes as part of its future transport strategy. Meanwhile, Abu Dhabi will host the inaugural Abu Dhabi Autonomous Systems Week from November 10 to 15, 2025, to showcase advancements in smart mobility and bring together stakeholders from across the industry. The report identifies public trust as a core element for adoption. Transparent safety records, performance benchmarks, and competitive pricing are highlighted as essential factors in building confidence.
To transition from pilot to full-scale commercial use, the report recommends coordinated efforts involving public authorities, private technology providers, and infrastructure operators. The GCC’s strong investment capacity, streamlined licensing pathways, and large-scale urban developments position it as a leading region for autonomous vehicle adoption. With foundational projects already in place and ongoing deployments across key cities, the Gulf region is poised to play a central role in the global shift toward autonomous mobility. – By Content Syndication Services.