South Korean autonomous driving company Autonomous A2Z has signed a $7.7 million deal to export its self-driving technology to the United Arab Emirates. The agreement marks a rare direct supply arrangement in the Middle East’s expanding smart mobility sector.
Deal replaces Chinese vehicles with Korean-made autonomous fleets
The contract, worth 27.91 million dirhams (about 11 billion won), was finalized with Space42, an Abu Dhabi-based AI company. Autonomous A2Z will supply 19 vehicles to replace Space42’s existing Chinese-made fleet used for its TXAI ride-hailing service.
The shipment includes eight ROii Level 4 driverless roboshuttles, five Kia PV5-based vehicles, five Kia Carnival-based models, and one autonomous MAN bus. The ROii shuttles will be manufactured in Korea and shipped as completed units in the second half of this year. The remaining vehicles will be sourced locally and converted into autonomous vehicles.
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Space42 plans to launch pilot operations on Saadiyat and Yas Islands in Abu Dhabi later this year. Some of the supplied vehicles will begin pilot roboshuttle operations in the second half of this year. The timeline for deploying the autonomous bus remains unclear.
UAE pushes for nationwide smart mobility adoption
The UAE government has prioritized a shift to autonomous transport, creating demand for large-scale vehicle exports as service areas grow. Autonomous A2Z’s full-stack technology—covering driving, fleet management, and operations—will integrate with Space42’s TXAI platform. The upgrade includes a new control system and remote-control cockpit.
After validating local road conditions and demand, the service is expected to transition to demand-responsive transport and tourism shuttles by 2027. Both companies expect broader commercial use as fleets expand.
The firms previously established a UAE joint venture, though the current deal operates separately. Their partnership gained momentum during a 2025 state visit by South Korea’s president to the UAE, where the joint venture agreement was signed.
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Autonomous A2Z’s experience helped secure the contract. It has conducted pilot projects in 13 Korean cities, holds permits for 91 autonomous vehicles, and has logged over 1 million kilometers of real-world driving. Space42 executives visited Korea to inspect operations, including a tour of K-City, a testing facility in Hwaseong.
Government support aided the company’s expansion. The Korea Transportation Safety Authority’s Korea Automobile Testing & Research Institute (KATRI) provided free testing at K-City, where Autonomous A2Z adapted its software for UAE roads. A then vice minister for trade at the Ministry of Trade, Industry and Resources attended a 2024 MOU signing to establish the joint venture.
The agreement highlights a broader trend. Middle Eastern markets are becoming key testing grounds for autonomous technology, with countries like the UAE investing in smart city infrastructure.
