Why the UAE and Saudi Arabia are in the fast lane with development of driverless cars


Cody Combs
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Middle East countries including the UAE and Saudi Arabia are in a strong position to begin widespread use of autonomous vehicles, an expert in driverless cars has said.

Srinivas Peeta, director of Georgia Tech's Autonomous and Connected Transportation Laboratory, told The National that it makes sense countries with a history of rapid technology adoption, strong infrastructure and relatively tranquil weather might be able to begin using autonomous vehicles faster than others.

“If you have the roads which are robust in terms of their quality and the road signage and other things are clear … they [the UAE and Saudi Arabia] are well suited,” he explained during a tour of the lab, which included a room where human interactions with autonomous vehicles are tested.

His comments come right before the UAE is set to host the Dubai World Congress for Self-Driving Transport, which will take place next week. The event is billed as “the world’s leading platform for self-driving tech, future mobility, and integrated transport systems”.

Meanwhile, Abu Dhabi launched its first pilot programme for autonomous delivery vehicles. The trial, taking place in Masdar City, involves vehicles that use advanced smart mobility systems and artificial intelligence that can navigate urban areas and deliver orders without human intervention.

Dubai's Roads and Transport Authority (RTA) also recently signed a preliminary agreement with Pony.ai, a Chinese autonomous driving company, to start trials of driverless vehicles in the emirate by the end of the year.

Last year, Uber announced it would begin using self-driving cars from Chinese-owned WeRide in its Abu Dhabi fleet, expanding the emirate's autonomous public transport options and boosting its sustainability push.

“It’s a terrific team, and we offer WeRides now in Abu Dhabi, and recently announced that expansion into Dubai as well,” Uber chief executive Dara Khosrowshahi said during a technology policy conference in Washington in April.

That same year, the UAE made history by organising the Abu Dhabi Autonomous Racing League (A2RL), a self-driving vehicle race in which a professional race car driver faced off against fully autonomous vehicles. As for Saudi Arabia, during a recent technology exhibition in Riyadh, Elon Musk announced that Tesla Motors would be bringing its Robotaxis to the kingdom in the not-too-distant future.

Srinivas Peeta is the director of Georgia Tech's Autonomous and Connected Transportation Laboratory
Srinivas Peeta is the director of Georgia Tech's Autonomous and Connected Transportation Laboratory

And Uber recently teamed up with Saudi-backed electric vehicle maker Lucid Motors and US robotics company Nuro with the aim of eventually launching a global robotaxi programme.

Yet for all the excitement and rapid advancements in the autonomous vehicle industry, Mr Peeta warned that several unknowns could impact the projected rapid embrace of autonomous vehicles. He pointed to the Middle East's climate.

“We always talk about weather impacting things,” he said. “In that region you can also have dust storms, which could occasionally pose challenges to the autonomous vehicles.”

He added that every country has different driving styles, such as lane discipline, that could impact the success of driverless vehicle roll-outs. “Those things can always be challenging,” he said, adding that for all the research done in the autonomous vehicle sector, predicting every potential scenario is almost impossible.

It's worth noting, however, that Tesla has been known to bring over vehicles to the UAE to put them through the paces for “extreme heat and durability testing”.

The final potential hurdle – not unique to the Middle East, according to Mr Peeta – is public sentiment.

Georgia Tech's Autonomous and Connected Transportation Laboratory features a Ford Fusion simulator, along with a 360-degree view of a virtual environment.
Georgia Tech's Autonomous and Connected Transportation Laboratory features a Ford Fusion simulator, along with a 360-degree view of a virtual environment.

In 2025, only 13 per cent of US drivers said they trust self-driving vehicles, according to polling from the American Automobile Association – a slight increase from the survey results last year that showed 9 per cent of drivers trusted the technology.

The survey also indicated that 53 per cent said that they would not choose to take a ride in autonomous vehicles, although those in the Millennial and Generation X age groups seemed more open to the idea.

With consumer fear still relatively high, Mr Peeta said in countries with stable existing transport infrastructure and road systems, driverless vehicles will win public support at a faster rate.

“Where the roads are robust and people are already following traffic rules, that's where we'll start to see autonomous vehicles become the norm,” he said.

All public perception issues aside, investments in the autonomous vehicle sector show no sign of slowing down. Globally, the value of the global autonomous vehicle market is forecast to reach about $2.3 trillion by 2032, from about $121.7 billion in 2022, data from Precedence Research shows.

Video - How robotaxis are expanding across the US

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Top investing tips for UAE residents in 2021

Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.

Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.

Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.

Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.

Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.

Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.

Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”

Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI. 

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UAE currency: the story behind the money in your pockets
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Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

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Ticket prices

General admission Dh295 (under-three free)

Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free

Buy tickets at: wbworldabudhabi.com/en/tickets

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Dubai World Cup draw

1. Gunnevera

2. Capezzano

3. North America

4. Audible

5. Seeking The Soul

6. Pavel

7. Gronkowski

8. Axelrod

9. New Trails

10. Yoshida

11. K T Brave

12. Thunder Snow

13. Dolkong 

Sreesanth's India bowling career

Tests 27, Wickets 87, Average 37.59, Best 5-40

ODIs 53, Wickets 75, Average 33.44, Best 6-55

T20Is 10, Wickets 7, Average 41.14, Best 2-12

Updated: September 19, 2025, 4:54 AM