Chinese autonomous driving firm WeRide has suspended its robotaxi operations in Dubai as tensions escalate between the US, Israel, and Iran, disrupting a key market for the industry. The company, which has operated in the region since 2021, confirmed on Tuesday that its fleets in Abu Dhabi and Riyadh continue normal commercial services.
WeRide employees in the region are now working from home and limiting unnecessary outings to ensure safety. The suspension highlights the impact of geopolitical instability on the emerging autonomous vehicle sector, which had viewed the Gulf as a promising expansion ground due to friendly regulations and high demand for ride-hailing.
Other Chinese robotaxi firms are also monitoring the situation. Baidu's Apollo Go, which launched commercial services in Abu Dhabi in January, stated it is coordinating with local regulators and will adjust services as needed. Pony.ai suspended on-road testing in Doha and Dubai but resumed testing in Doha on Monday, with plans to resume in Dubai at an appropriate time.
The Gulf region had been seen as a competitive arena for Chinese and US robotaxi companies. Dubai aims for 25% of daily transport to be smart and driverless by 2030, while Abu Dhabi targets the same by 2040 and Saudi Arabia 15% by 2030. Industry consultants note the region's infrastructure, capital, and ambition attract global players.
