A Korean startup Autonomous a2z (A2Z), which leads autonomous driving sector, announced on the 17th at the Autonomous Mobility Expo (AME 2024) held at COEX that it will establish a joint venture specializing in autonomous driving, tentatively named A2D (Abu Dhabi Autonomous Driving), with UAE AI company Bayanat. A2D will be based in the Middle East and serve as a hub for the commercialization of Level 4 autonomous vehicles in the MENA (Middle East & North Africa) market.

A2D will start with a capital of $10 million, with Bayanat holding a 51% stake and A2Z holding 49%. This capital will be used to introduce A2Z’s autonomous vehicles to the UAE and will be increased through paid-in capital expansion as the business in the Middle East market grows. By 2031, they aim to sell 1,219 autonomous vehicles in the UAE, capturing 20% of the public transportation market and generating several trillion won in revenue. This aligns with the UAE RTA’s (Roads and Transport Authority) national mobility strategy of achieving 25% autonomous transportation by 2030.

Bayanat, which is partnering with A2Z to establish the joint venture, is a subsidiary of AI company G42, owned by Sheikh Tahnoon bin Zayed Al Nahyan. Sheikh Tahnoon is also the National Security Advisor of the UAE and Chairman of the Abu Dhabi Investment Authority (ADIA), the world’s largest sovereign wealth fund with $790 billion in assets under management (as of 2022). Founded in 1974, Bayanat’s corporate value is close to 5 trillion won, with sales reaching 1.5 trillion won in 2023 alone.

A2Z is the only Korean company ranked 13th in the global autonomous driving technology rankings by the American consulting firm Guidehouse, with a total operational scale of 43 autonomous vehicles. It has surpassed 50 billion won in cumulative investment and achieved 20 billion won in cumulative sales, despite not being able to sell autonomous vehicles due to unestablished regulations.

The joint venture A2D plans to actively promote the commercialization of Level 4 (according to SAE standards) autonomous vehicles in the Middle Eastern market. Initially, it will start with modified existing vehicles for autonomous driving on UAE public roads. Later, A2Z’s proprietary autonomous vehicle platforms, MS (Mid Shuttle) and SD (Small Delivery), will be produced and sold in the UAE through a complete knockdown (CKD) approach.

Han Ji-hyeong, CEO of A2Z, said, “The combination of Bayanat’s advanced technological expertise and A2Z’s autonomous vehicle R&D capabilities and leadership in the autonomous vehicle sector will significantly accelerate the implementation of government policies on autonomous driving.” He added, “The joint ventures in Singapore (A2G, Autonomous 2 Global Innovations) and the Middle East (A2D, Abu Dhabi Autonomous Driving) will be the starting milestones for becoming a global A2Z.”

Bayanat CEO Hasan Al Hosani said, “We are pleased to announce the establishment of the autonomous driving joint venture with A2Z. Our ongoing partnership with A2Z will strengthen our Smart Mobility Solutions (SMOS) products.” He continued, “This is a very significant decision for the UAE and the Middle East region. By combining our expertise, we will create innovation through the development of mobility solutions.”