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Korean autonomous driving startup inks deal with UAE-based company, beating out U.S. and China

Published: 20 Nov. 2025, 16:14 Updated: 20 Nov. 2025, 19:05

Science and ICT Minister Bae Kyung-hoon, center, poses for a photo with company representatives during an MOU signing ceremony between Autonomous A2Z and Space42 in the United Arab Emirates on Nov. 19. [MINISTRY OF SCIENCE AND ICT]

Autonomous-driving startup Autonomous A2Z and Abu Dhabi-based Space42 formed a $4 million joint venture as the United Arab Emirates (UAE) ramps up spending on AI and mobility technology, giving the Korean startup a foothold in a market shifting away from Chinese players.

A2Z announced the partnership Thursday after the companies unveiled the venture during a Korea-UAE business roundtable held Wednesday, alongside President Lee Jae Myung’s state visit to Abu Dhabi.

Science and ICT Minister Bae Kyung-hoon joined A2Z Vice President Yoo Byung-yong and Space42 Chief Commercial Officer Shulaiman Al Ali at the signing ceremony. The companies will jointly invest $4 million to launch the venture and plan to pursue an autonomous-driving project together valued at $8 million in Abu Dhabi, according to A2Z.

The deal marks the first entry into the Middle East for a Korean autonomous-driving startup, positioning A2Z ahead of U.S. player Cruise LLC, a General Motors subsidiary, and China’s WeRide, which had also competed for the UAE opportunity.

A2Z CEO Han Ji-hyeong said last month in an interview with the JoongAng Ilbo that “the UAE is preparing for the post-oil era, and has selected AI and future mobility as its new growth engines.”

“The UAE, caught between U.S.–China rivalry, began seeking new partners in Abu Dhabi instead of China’s WeRide,” he said.

“We beat GM Cruise in the United States and signed a memorandum of understanding [MOU] last July to pursue the establishment of a joint venture, and the final contract is close to completion. We will begin operating autonomous shuttle services in the UAE as early as this year,” Han added.

A2Z plans to launch a pilot program next year in Abu Dhabi and Dubai using five PV5 vehicles developed with Kia. The company said it will establish local research and development programs, expand manufacturing and infrastructure bases and push for commercial deployment of autonomous driving across the Middle East.

The startup will also work with the Abu Dhabi Investment Office and Abu Dhabi's Smart and Autonomous Vehicle Industries cluster to help develop regulations and operating frameworks needed for deployment.

In a separate development during President Lee’s visit, medical AI firm Lunit signed a memorandum of understanding with UAE-based ARJ Group to collaborate on clinical AI and digital health technologies. The agreement aims to test an AI foundation model specialized in medical science in the UAE and broader Middle East.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY YU SUNG-KUK [[email protected]]