A new report shows fully autonomous vehicles could bring US$18.7B to Gulf economies by 2035, driven by giga-projects and smart mobility.
DUBAI: Fully autonomous vehicles (FAVs) could unlock a US$18.7 billion opportunity for Gulf economies by 2035, according to a new report by Strategy& Middle East, part of the PwC network. The study forecasts that the global FAV market could be worth US$182 billion by then, with the GCC capturing nearly 10% of this value through advanced autonomous mobility networks.
The research highlights that robo-taxis, robo-buses, robo-shuttles, and even passenger drones will form the backbone of this transformation. Robo-taxis alone are expected to generate US$10 billion in the region, as part of a fully automated and integrated transportation system.
Strategic initiatives like NEOM in Saudi Arabia and the UAE’s smart city programmes are laying the groundwork by embedding autonomous vehicle technologies into urban planning from the outset. These developments act as live testing grounds—known as regulatory sandboxes—allowing for more flexible piloting of next-gen mobility.
“With visionary planning and strong financial backing, the GCC is well-positioned to lead the world in autonomous mobility,” said Dr. Andreas Gissler, Partner at Strategy& Middle East. “What’s needed now is a shift from pilots to full-scale, real-world adoption.”
The report outlines three critical tipping points for FAV adoption: pilot readiness, commercial readiness, and scalability. Success in these areas will rely heavily on government support, infrastructure readiness, and public trust. Investment in infrastructure upgrades, clear regulatory frameworks, and strong partnerships with technology providers are essential to making this vision a reality.
Mark Haddad, another Partner at Strategy&, added, “The GCC has an edge—ample investment capacity, streamlined licensing, and mega-scale projects that offer ideal testing environments. The challenge is converting this momentum into long-term, sustainable deployment.”
The report cautions that without the right alignment of infrastructure, some early investments may become obsolete. It stresses the need for programmes that combine public-private collaboration, financial incentives, and a commitment to creating visible safety records and accessible pricing to win public confidence.
With coordinated action, the GCC can become a global leader in autonomous mobility, setting benchmarks for innovation and smart urban transport.
