On the manicured roads of the United Arab Emirates, a driverless future is slowly taking shape. Robotaxis zip past palm tree-lined streets, luxury hotels, and glass towers glinting under the sun. 

The affluent Middle Eastern country is building the physical and regulatory infrastructure to attract the world’s leading autonomous-vehicle technology companies. It aims to have thousands of AVs on the road in the next five years — at least one in every four trips taken in its top cities.

That goal is a potential nightmare for the 30,000 cab drivers in Dubai and Abu Dhabi.

“Driverless cars are the future,” Faisal Q, a Pakistani driver who has been working in the UAE for more than 30 years, told Rest of World. He asked that his last name be withheld, as he is afraid of repercussions from speaking to the media. “What about my future?” 

As the UAE attempts to become the testing ground for the world’s most advanced driverless technology, it will also be testing what happens when the powerful tech disrupts a largely migrant workforce.

“Large-scale displacement is inevitable for low-income jobs in the new AI and robotics-driven era,” Shahzad Sheikh, an auto industry reporter who covers cars in the Middle East, told Rest of World. “It’s the harsh truth to say, ‘Tech is now coming for low-income workers.’” 

The UAE’s ambitious AV strategy is underpinned by strong regulatory and investment support. It wants to position itself as a global test bed for major autonomous mobility providers. The UAE is among the world’s most AV-ready markets because of its proactive policy, smart infrastructure, and public-private partnerships, according to a report by consulting firm Arthur D. Little.

Abu Dhabi has already overseen nearly 30,000 AV trips across 430,000 kilometers (267,189 miles). The emirate aims to make 25% of all trips autonomous by 2040, which it projects will lead to 15% less emissions and 18% fewer accidents.

These cars will finish our job.”

Its Smart & Autonomous Vehicle Industries Cluster, an initiative launched in 2023, will offer support with research, testing, and manufacturing facilities. It is expected to eventually create up to 50,000 jobs and contribute more than $30 billion to the country’s economy by launching a new autonomous vehicle industry in the UAE.

Dubai’s AV strategy is equally ambitious. It plans for 25% of all journeys in the city to be driverless by 2030 — a move expected to save $6 billion annually and nearly 400 million commuting hours.

“It’s a big pilot site for different companies to come and understand the market,” Jorge Dias, a professor at Khalifa University specializing in autonomous robotic systems, told Rest of World. “The authorities are trying to open the door and test these technologies.”

Chinese AV firms like WeRide have raced ahead of their American counterparts like Tesla and Waymo to assist the UAE.

TXAI was the region’s first robotaxi service when it launched in 2021. The service, operated by Emirati company Space42 in partnership with WeRide, has an AV fleet of sedans and SUVs from one of China’s biggest EV makers, GAC.  

In 2024, Uber partnered with WeRide to enable customers to hail AVs in Abu Dhabi. The fleet includes models like the GAC Aion LX Plus and WeRide’s latest robotaxi. Unlike TXAI, Uber charges for AV rides.

Chinese tech giant BaiduiBaiduBaidu is a Chinese technology company that operates the country’s biggest search engine and video-streaming service iQiyi.READ MORE’s autonomous ride-hailing service, Apollo Go, has partnered with AutoGo, a UAE-based autonomous mobility firm. The companies plan to build Abu Dhabi’s largest fully driverless fleet.

WeRide, which holds the UAE’s first autonomous-driving test license, has begun piloting fully driverless rides without safety officers, with an eye toward commercial rollout later this year. In July, the company secured Saudi Arabia’s first robotaxi permit.

In Dubai, Uber-WeRide, Apollo Go, and Pony.ai all announced collaborations with local transport authorities this year, and are preparing for rollouts in the city by 2026. Eventually, Dubai aims to deploy over 4,000 driverless taxis by 2030.

If the UAE succeeds in replacing 25% or more of its human-navigated trips with driverless solutions, thousands from its fleet of 30,000 drivers would no longer be needed. The future for taxi drivers isn’t a promising one, given the high risk of automation. 

The development has significant implications for South Asian migrant workers, in particular, who have historically dominated the transportation sector in the Gulf, according to Froilan Malit Jr., an expert on migration to the Middle East and a visiting scholar at American University in Dubai. 

“With their pathway to middle-income [status] threatened, it will likely force a lot of them to either consider moving to other Gulf countries like Saudi Arabia, or to other private transportation jobs like personal drivers,” Malit Jr. told Rest of World. 

The migrant drivers on Emirati roads — many of whom lack formal education and strong English-language skills — are often not aware of what might be coming. The ones who have heard of the AV plan are worried.

If a company has a fleet of 1,000 taxis and converts to autonomous vehicles, that’s a thousand drivers it won’t need.”

Wisal Khurshid, a Dubai-based Pakistani cab driver, said he heard the AV trials are a threat. 

“These cars will finish our job,” Khurshid told Rest of World. 

He hoped it would take time for a machine to replace drivers who’ve spent years learning every nook and corner of Dubai’s streets. If a bot replaces him, support from an employer or the government may be limited.

“I will find another job, inshallah,” he said. “Or I go back to Pakistan.”

An AV employee, who asked to be called Mohammad, is literally sitting in the driver’s seat, driving this change. 

He is not an AV startup founder; he is a trainer of driverless taxis. As a “safety officer,” he remains behind the wheel in case the technology struggles and needs human intervention. 

Mohammad, who declined to share his real name because he could be fired for speaking to the media, became a safety officer over three years ago. He proudly recalled being among the first to work with autonomous taxis in the Middle East. 

“It’s an exciting and historic experience,” he told Rest of World. 

Safety officers are responsible for guiding the AVs’ learning process and intervening in tasks like parking or emergencies.

“The most challenging part is identifying subtle issues in the car’s behavior and staying alert during every ride,” Mohammad said.

Dias, the professor, is confident that AVs will be a net positive for the industry and workers. He describes the shift as one of “job transformation,” as large-scale AV deployment matures.

While there won’t be a need for the current numbers of taxi and delivery drivers, safety officers are an example of the new jobs that are being created. Driverless vehicle firms will also need people to maintain, clean, charge, and occasionally operate the fleets remotely.

Groups like the Autonomous Vehicle Industry Association have pointed to new and well-paying roles being created, including service technicians, remote assistant operators, mapping specialists, dispatchers, and terminal operators.

WeRide told Rest of World it is “committed to uplifting the local economy by creating skilled jobs and fostering a smarter, more sustainable transport system.” Its UAE regional office in Abu Dhabi includes local workers in key functions like remote monitoring and operations, the company said.

Sheikh, the auto industry reporter, doesn’t think there will be enough new roles to offset the jobs that are lost. 

“There will, of course, be unique new, emerging roles. But there won’t be enough of them, quite frankly,” he said. “If a company has, say, a fleet of 1,000 taxis, and converts to autonomous vehicles, that’s a thousand drivers it won’t need.”

Abu Dhabi is giving away what Silicon Valley sells.

The United Arab Emirates is offering its advanced Falcon artificial intelligence programs completely free at a time when OpenAI, Google, and their peers charge hefty fees for access to their more powerful versions. Falcon, an AI chatbot that can understand and generate human-like text in multiple languages, comes with a license that allows anyone to use, modify, or sell the technology without paying a cent, according to the Technology Innovation Institute, the Abu Dhabi government-funded research center that created Falcon.

TII continues to release new versions, including Falcon Arabic for regional language processing and Falcon-e for energy-efficient AI usage.

The UAE’s approach comes as AI is becoming the new oil — prompting nations to fight for control. ChatGPT, Gemini, and other leading Western AI models remain proprietary systems. The companies typically charge $20 a month for some versions, with prices running into thousands of dollars monthly for businesses that need higher usage limits.

By offering free and open-source alternatives, the UAE is turning its petroleum profits into digital influence, and could become the go-between in a technology world split between the U.S. and China.

Access to AI must be a right for everyone and not a privilege of only a few.”

“Access to AI must be a right for everyone and not a privilege of only a few,” Hakim Hacid, chief researcher at TII, told Rest of World. “The TII is taking the open-source approach as a strategic differentiator, positioning Falcon as a trusted and transparent alternative in the global AI landscape.”

The UAE’s strategy is distinct from that of Silicon Valley giants, which guard their best AI models as proprietary software. Even Meta’s Llama 3, despite being labeled open-source, includes commercial restrictions that Falcon completely eliminates.

A McKinsey survey from April 2025 found that 60% of organizations say open-source AI costs less to implement than proprietary tools, and more than 80% of five developers consider open-source skills essential for their careers. About two-thirds of developers say these tools make their jobs more satisfying.

While TII imposes no fees, it requires users to credit the source and comply with ethical and lawful standards. It also retains the right to update the terms or introduce additional governance measures if safety concerns arise, Hacid said.

Schools, governments, and businesses across Africa, Southeast Asia, and Latin America have shown strong interest in Falcon’s ability to adapt to local needs, from regional languages to teaching methods, he said.

“This approach allows partners to adjust the programs for regional needs, whether in local languages, education systems, or cultural contexts,” Hacid said.

While Chinese companies like Baidu and Alibaba have released their own versions, experts say China’s offerings are scattered and confusing, with poor instructions and little transparency for international users, unlike Falcon’s unified system.

Each region’s AI strategy reveals its priorities, Levent Ergin, chief strategist for climate, sustainability, and AI at California-based software firm Informatica, told Rest of World. The U.S. typically releases programs with strings attached, while China’s efforts remain fragmented with too many overlapping projects, he said.

The UAE’s approach stands out for its global accessibility and permissiveness.”

“The UAE’s approach stands out for its global accessibility and permissiveness,” Ergin said. “That is both bold and visionary. It promotes support for many languages rather than forcing everyone to use American or Chinese systems.”

Open-source software’s universal accessibility creates both opportunities and risks: Contributors can emerge from anywhere but may abandon projects when better alternatives appear, said Peter Pugh-Jones, field chief data officer for Europe, the Middle East, and Africa at U.S. tech company Confluent.

“Many customers in the Middle East and Southeast Asia now want control over their data, local compliance, and flexible options,” Pugh-Jones told Rest of World. “There is a clear global trend, partly driven by today’s political climate, toward locally controlled services and infrastructure.”

Still, big problems remain for businesses that want to use free AI in real work. Many companies worry about using open programs in sensitive areas like hospitals, banks, or military systems, where strict rules and security fears drive decisions.

“Free AI faces similar challenges to paid versions, especially around ethics and the huge amounts of data needed to make them work,” Pugh-Jones said.

Despite the roadblocks, 76% of companies plan to use more free AI programs, according to McKinsey’s research. This shows the appetite for alternatives to dominant U.S. and Chinese platforms, creating opportunity for neutral players like the UAE.

Even as TII improves Falcon, it remains committed to keeping it free. The institute is building a new version that combines different technologies to work better and use less power, while also teaching it to understand both words and pictures.

Safety remains important despite the free approach, Hacid said. TII is teaching its programs to learn from human feedback, removing harmful content, and making sure they behave properly.

“We are actively working with international AI safety organizations to align Falcon’s development with global best practices,” Hacid said.

The emphasis on ignored languages through Falcon’s Arabic version shows the UAE’s strategic thinking. TII sees Arabic-speaking AI as crucial for schools, governments, and customer service across the Middle East, filling a gap Western developers have mostly overlooked.

“One of open-source’s greatest strengths is also its core challenge: Anyone can contribute from anywhere, but support can shift quickly when something newer or better emerges,” Pugh-Jones said. “That dynamic can make it harder to maintain consistency for mission-critical production workloads.”

The political effects reach beyond technology. By offering powerful, freely available AI programs, the UAE is inviting other nations to build their digital future on the foundations it has laid.

Few nations can build an advanced AI program like Falcon, and fewer still would be likely to give it away free.”

The achievement signals the UAE’s growing capabilities, David Boast, regional manager for the UAE and Saudi Arabia at U.K. software firm Endava, told Rest of World. Not many nations have the resources and expertise to build advanced AI, and even fewer would share it freely, he said.

“Few nations can build an advanced AI program like Falcon, and fewer still would be likely to give it away free,” Boast said. “That says a lot about the UAE’s growing technical capabilities, but also its mindset: It’s not innovating in isolation.”

Falcon’s flexible design allows engineers to switch programs easily without rebuilding their systems, making it simple to adapt to local laws and changing rules.

TII is building tools to observe how people use Falcon and prevent misuse. The oversight measures balance freedom with responsibility, though TII retains the right to change rules if safety issues appear, Hacid said.

The UAE’s commitment extends beyond technology to broader goals. TII views its work as part of a mission to democratize advanced computing power.

“Ultimately, our focus is on making AI more responsible, more inclusive, and more effective for everyone,” Hacid said.

Once a land of gas-guzzling super-cars, the United Arab Emirates is rapidly emerging as the Middle East’s unexpected electric vehicle leader, signaling global energy transition has reached the heartlands of petroleum production.

Ambitious climate targets, expanding charging infrastructure, and a growing range of vehicles at various price points are driving this EV revolution. EVs made up 13% of total car sales in 2023, according to the latest Ministry of Energy and Infrastructure figures, jumping from 3.2% in 2022 and a mere 0.7% in 2021. About 260,000 new vehicles were sold in the UAE in 2023, according to Hamburg-headquartered data collator Statista.

The pivot underscores an evolution for a nation built on oil wealth, with green mobility forming a key component of its economic diversification and sustainability strategy. The UAE aims to have EVs making up half of all vehicles on its roads by 2050, said Sharif Al Olama, undersecretary for energy and petroleum affairs at the Ministry of Energy and Infrastructure in Abu Dhabi.

“The UAE is strongly committed to shifting towards cleaner and more sustainable energy sources,” Al Olama told Rest of World. “Prices are dropping, demand is rising, and infrastructure is expanding rapidly.”

The UAE had more than 147,000 electric and hybrid vehicles on its roads as of last year, with EV registrations alone rising by more than 25% year on year. Total new vehicle sales in the UAE were 316,000 units in 2024.

147,000 Number of EVs and hybrids in UAE as of 2023

The UAE might surpass its 2050 EV target ahead of 2050, given the pace of innovation and consumer interest, said Alessandro Tricamo, partner for transportation and services practice for the Middle East, Africa, and India at consulting firm Oliver Wyman in Dubai.

“If Norway, also a major oil producer, can reach over 96% EV sales for new cars, there’s no reason the UAE can’t follow,” Tricamo told Rest of World.

EV demand in the country is already high: Almost two-thirds of the people want to make EVs their primary mode of transport by 2025, according to a joint survey by the UAE’s biggest car dealer Al-Futtaim and London-based market researcher YouGov, which collated answers from more than 2,000 respondents.

“The rapid growth in the adoption of NEVs [new energy vehicles] presents an exciting new phase in the UAE’s mobility landscape,” Paul Willis, president of Al-Futtaim Automotive, told Rest of World. “The very fact the UAE is actively diversifying its oil-based economy paves the way for electrification and carbon reduction across sectors, including transportation.”

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The roots of the UAE’s EV boom lie in its ambitious climate initiatives. In January 2017, the country launched its UAE Energy Strategy 2050, and followed up in October 2021 with Net Zero 2050 — both of which aim to slash emissions and increase the share of clean energy in the country’s power mix to 30% by 2031.

“It’s a combination of cost, climate awareness, and policy,” Willis said. “But increasingly, it’s also about performance. Modern NEVs provide a smooth, quiet ride with instant torque and cutting-edge features that are attracting tech-savvy consumers.

”The perception of EVs has evolved dramatically. Customers are increasingly attracted by the modern designs, advanced features, and superior driving comfort, coupled with lower ownership and maintenance costs, and growing environmental awareness, Tricamo said.

Al-Futtaim’s EV offerings span a wide range from Toyota and Lexus to China’s BYD and GAC Aion, making electric cars accessible to a much broader segment of the population, Willis said. New launches such as the BYD Sealion 7 and hybrid models like the Lexus LX 700h are helping Al-Futtaim maintain sustained double-digit growth aligned with the UAE’s goals, he said.

The real story is not about replacing oil but about creating balance and resilience in a future-ready economy.”

Over the past decade, the UAE has introduced a range of incentives to promote EV adoption, from short-term perks to long-term strategies. Buyers are recognizing that innovation, sustainability, and energy efficiency can co-exist, according to Moutaz Louis, CEO of Smart Mobility International, a UAE-based EV distributor.

“The real story is not about replacing oil but about creating balance and resilience in a future-ready economy,” Louis told Rest of World. “Electric and hydrogen-powered vehicles will play an increasingly dominant role.”

Even as UAE fuel prices remain about a fifth lower than average U.S. rates, according to Rest of World calculations, EVs are winning over consumers through reduced long-term operational costs and shrinking range anxiety, thanks to an expanding charging infrastructure, Louis said.In May 2024, the Ministry of Energy and Infrastructure started UAEV, a joint venture with Etihad Water and Electricity, to build a nationwide charging network. Under the venture, the country is expected to have 1,000 public charging stations to cater to varying numbers of vehicles by the end of 2030 — many of them fast chargers, according to a statement from UAEV.

The Dubai Electricity and Water Authority currently has a wide network of about 740 charging points across the city. Started in 2014, DEWA aims to expand its EV green charger network to 1,000 stations by the end of the year. Al-Futtaim aims to provide 10% of the country’s charging stations by 2030 through Charge2Moov, a turnkey charging solution for homes and businesses, Willis said.

Still, the UAE’s efforts pale in comparison to global leaders. China had 12.82 million charging points by the end of December 2024 — up 49% from the previous year, with 4.2 million points added in 2024 alone, according to data from the nation’s Electric Vehicle Charging Infrastructure Promotion Alliance, an industry group. The U.S. had more than 204,600 EV charging outlets as of March this year, with California accounting for almost a quarter of the total, Statista figures show.

The UAE has in the last three years offered EV owners incentives including free charging, parking privileges, and smart toll cards, while introducing policy frameworks with mandates for EV-ready infrastructure in new developments and innovative green financing initiatives.

“We’re seeing a more institutionalized approach now,” Louis said. “It’s less about freebies, and more about infrastructure and long-term viability.”

These benefits have resonated with UAE consumers. EV owners spend just a quarter of what traditional car owners do on fuel, Willis said. EV maintenance costs are also significantly lower because of fewer moving parts and longer service intervals.

Chinese manufacturers play a pivotal role in expanding market options. Not only are they cost-competitive, they are equally tech-competitive, Louis said. Brands like Avatr, BYD, and GAC Aion have combined advanced battery technology with competitive pricing to take on established players.

Smart Mobility has begun offering so-called range-extended electric vehicles (REEVs), whose electric drivetrains and onboard generators produce a range of more than 1,000 kilometers (620 miles). No other company in the Middle East is selling such vehicles yet.

By the end of 2025, internal combustion engine vehicles might feel as outdated as horseback riding.”

Challenges remain in the UAE’s electric journey. The harsh desert climate can strain battery performance, and charging infrastructure must continue to expand to meet growing demand. Battery recycling and second-life applications will become increasingly important as the EV fleet grows, Tricamo said.

The government is working with environmental company Beeah to launch the country’s first electric and hybrid vehicle battery recycling facility, Al Olama said.

“We are addressing disposal challenges before they become a roadblock,” he said.

Additional measures, including mandating minimum charging points at gas stations and malls, encouraging more players to enter the charging market, and implementing congestion charges would further incentivize EV adoption, Tricamo said.“The shift to electric is happening faster than anyone anticipated,” he said. “By the end of 2025, internal combustion engine vehicles might feel as outdated as horseback riding.”