Abu Dhabi and Egypt's Valeo team up to drive development of emirate's mobility sector

The partnership will explore opportunities to design and manufacture electric and self-driving car components in the emirate

The agreement was signed by Arafat Al Yafei, executive director of the Abu Dhabi Department of Economic Development's Industrial Development Bureau, and Tamer Aly, Valeo Egypt's general manager, in the presence of Rashed Al Blooshi, undersecretary of the department. Photo: AddedShow less

The Abu Dhabi Department of Economic Development and Egypt's Valeo have signed a preliminary agreement to develop the mobility sector and support sustainability initiatives in the UAE capital.

Under the partnership, Valeo will have the opportunity to design and manufacture electric and self-driving car components in the emirate, the department said on Friday.

It also aims to boost the industrial solutions development community and team up with local electric vehicle start-ups, while exploring new areas of development, it said.

The agreement was signed in Abu Dhabi by Arafat Al Yafei, executive director of the department's Industrial Development Bureau, and Tamer Aly, Valeo Egypt's general manager, in the presence of Rashed Al Blooshi, undersecretary of the department.

The venture is in line with the Abu Dhabi Industrial Strategy to solidify the emirate’s position as the region’s most competitive industrial centre, Mr Al Blooshi said.

“This co-operation to develop smart mobility and set up a technology hub for electric, autonomous car components in Abu Dhabi is in line with our initiatives to ensure that growth, sustainability and advanced technologies go hand in hand in all aspects of our socio-economic development,” he said.

Smart mobility is the integration of advanced technology and data-driven solutions to create efficient, sustainable and user-centric transport systems.

The global smart mobility sector is projected to expand at a compound annual growth rate of more than 21 per cent to about $404 billion by 2032, from $48.54 billion in 2022, data from Spherical Insights & Consulting shows.

Meanwhile, the world's self-driving vehicle market is expected to hit $93.3 billion by 2028, from $33.48 billion this year, at a CAGR of about 23 per cent, according to Mordor Intelligence.

The UAE has sought to become a leader in smart mobility systems as part of its efforts to promote and integrate sustainability measures into society and the economy.

A number of initiatives have been introduced to bring about driverless services. This is one pillar that makes Abu Dhabi and Dubai “well positioned” to be at the forefront of becoming full-fledged smart cities.

Abu Dhabi has its own fleet of driverless taxis on Yas Island run by TXAI. During last November's Etihad Airways Abu Dhabi Grand Prix, TXAI operated a driverless bus service to carry fans.

The emirate is also moving ahead with drone delivery trial programmes.

At last year's Gitex Global, Dubai showed off its first driverless taxis, which will be introduced “in limited numbers” in 2023.

In April, a fleet of five electric cars mapped out in Dubai to support this push and the emirate plans to have 4,000 driverless taxis by 2030.

In December, Dubai South, an aviation and logistics urban master developer in the emirate, signed a partnership with Evocargo to conduct the UAE's first driverless lorry trials.

Under the Abu Dhabi Industrial Strategy, emirate has set an investment target of Dh10 billion ($2.72 billion) as it aims to more than double the size of its manufacturing sector to Dh172 billion, create 13,600 skilled jobs and boost its non-oil exports by 143 per cent to Dh178.8 billion by 2031.

It will be underpinned by six transformational programmes – the circular economy, Industry 4.0, talent development, ecosystem enablement, home-grown supply chain and value chain development – all aimed at driving growth and innovation, boosting skills and strengthening local manufacturing.

Aside from establishing a presence in Abu Dhabi, the partnership will allow Valeo to tap into the emirate's technology and expertise, Mr Aly said.

Valeo will also be able to transfer its knowledge “to the high tech and advanced education societies in Abu Dhabi”, he said.