In the dynamic landscape of advanced air mobility, the Global Advanced Air Mobility Market is on an upward trajectory, marking a value of approximately $8.2 billion in 2022, according to a market research study published by Custom Market Insights. Forecasts predict a substantial leap to $14.1 billion in 2023 and a soaring $68.1 billion by 2032, boasting a remarkable CAGR of 35.2 per cent between 2023 and 2032. Major market players, including Joby Aviation, Volocopter, Wisk Aero, EHang, Urban Aeronautics, Lilium, A³ by Airbus, Vertical Aerospace, Bell Textron, and Archer Aviation, are at the forefront, driving this transformative wave.

While this revolution unfolds globally, the Middle East is making waves, especially in launching and operationalising air taxis. Dubai stands at the forefront of this movement, with plans to become a hotspot for futuristic air taxis. Earlier this year, Sheikh Mohammed bin Rashid Al Maktoum revealed Dubai’s relaunched flying taxi programme, envisioning air taxis soaring through the city’s skies within three years. The ambitious plan includes four “vertiports” strategically located at Dubai International Airport, Downtown Dubai, Palm Jumeirah archipelago, and Dubai Marina, each equipped with launching pads and charging points for these airborne taxis.

In the fast-evolving landscape of advanced air mobility and autonomous transportation, the Middle East and North Africa (MENA) region is undoubtedly taking center stage, redefining the future of mobility in unprecedented ways. The United Arab Emirates (UAE), known for its ambitious and advanced ventures, is now positioning itself at the forefront of the electric aviation revolution.

Various developments are in the pipeline towards making this ambition a reality. The MENA region is asserting itself as leader in autonomous and electric transportation. NEOM, Saudi Arabia’s groundbreaking $500 billion smart city project, is a prime example. With a focus on urban sustainability, NEOM is venturing into autonomous transport, with a substantial $175 million investment in Volocopter, a German eVTOL startup, as part of its Series E funding round. Together, NEOM and Volocopter are on a mission to make electric air taxis a reality, aligning with NEOM’s comprehensive plan for a renewable energy-powered urban mobility system.

NEOM and Volocopter recently made history by conducting Saudi Arabia’s first electric air taxi flight. This monumental achievement, following 18 months of collaboration with the General Authority of Civil Aviation (GACA), aims to implement and scale an electric Urban Air Mobility (UAM) ecosystem and testbed in NEOM. Urban air mobility, representing sustainable aviation, is set to provide additional transportation options for regions and cities.

Beyond air taxis, the MENA region is embracing autonomous ground transport. BaseTracK has launched autonomous trucks in the UAE, demonstrating a significant impact on sustainability and emission reduction. Working in partnership with Ras Al Khaimah Economic Zone, BaseTracK’s CEO, Andrey Vavilin, highlights the 10-20 per cent reduction in fuel consumption achieved by these autonomous trucks.

Dubai South and Evocargo are spearheading the UAE’s first autonomous vehicle trials for cargo logistics. This strategic collaboration is a substantial move toward positioning Dubai as the world’s leading smart mobility hub. Evocargo’s unmanned electric logistics vehicle, EVO.1, has undergone successful trial runs in Dubai South’s Logistics District, boasting impressive specifications including a 3.5-tonne weight, a 2-tonne payload capacity, a power reserve of 155 miles, and a quick 40-minute charging time.

Saudi Arabia, Qatar, and Bahrain are actively experimenting with autonomous shuttles. In Saudi Arabia, EasyMile’s autonomous shuttle services are undergoing tests at King Abdullah University of Science and Technology (KAUST), providing driverless, 100 per cent electric transportation for up to 12 people. Similar initiatives are underway in Qatar and Bahrain, showcasing a region-wide commitment to exploring the potential of autonomous technology in public transportation.

In another development, Saudia, Saudi Arabia’s national airline, is championing zero-emission aviation through a significant agreement with Lilium, a German firm. The deal involves the delivery of up to 100 eVTOL jets, emphasising Saudia’s dedication to sustainable tourism through innovative and environmentally conscious aviation practices.

Recently, a deal has been inked between a Chinese company and Abu Dhabi’s Monarch Holding, marking a milestone in the pursuit of electric-powered air taxis and cargo drones. This ambitious move aligns with the UAE’s aspiration to lead the vertical take-off and landing transport market. Also, Monarch Holding has joined forces with EHang Holdings, a pioneering autonomous aerial vehicle (AAV) company. Together, they are embarking on the establishment of the Middle East and North Africa’s first manufacturing facility for electric air taxis and cargo drones. The collaboration extends to the creation of a command-and-control center for autonomous urban air mobility and the development of vertiports — compact airports tailored for vertical take-off and landing (eVTOL) aircraft.

Canada-based VPorts is also making waves in the UAE’s air mobility landscape. With strategic agreements in place, VPorts is laying the foundation for the AAM Integrator Centre in Dubai. The company signed a 25-year exclusive lease agreement with the Mohammed Bin Rashid Aerospace Hub, aiming to build and operate 1,500 vertiports globally by 2045. An initial investment of $40 million over three years is set to transform Ras Al Khaimah into a bustling hub, generating substantial revenue for Abu Dhabi and Dubai over the next 25 years.

Eve Holding, a subsidiary of Brazilian aircraft manufacturer Embraer, and Falcon Aviation Services, a UAE-based charter flight operator, are entering the arena with a collaboration to manufacture 35 flying taxis and urban air mobility plans for Dubai. Eve Air Mobility envisions launching eVTOL tourism flights in Dubai from 2026 onward.

Archer Aviation, based in San Jose, California, has set its sights on the UAE as its first international launch market for electric air taxi services. Teaming up with the Abu Dhabi Investment Office (ADIO), Archer plans to establish an engineering “Center of Excellence” dedicated to advanced air mobility (AAM) technology. This aligns with the UAE’s Smart and Autonomous Vehicle Industry (SAVI) cluster, situated in Masdar City, under the patronage of Sheikh Hamdan bin Mohamed bin Zayed Al Nahyan. Californiabased Odys Aviation is constructing its headquarters in Abu Dhabi, featuring a production facility. China’s EHang is also joining the fray, with plans for a manufacturing plant in the UAE capital. Both companies have been actively conducting flight tests in the region.

UAE leaders unveiled the country’s first national vertiport regulations in December. VPorts is gearing up to construct the inaugural vertiport at Ras Al Khaimah International Airport, with subsequent plans for a comprehensive nationwide network of vertiports. Collaborating with the UK’s Skyports, the objective is to establish the necessary infrastructure for widespread eVTOL air taxi services by 2026. Plans include a cutting-edge vertiport at Dubai International Airport, revealing a futuristic design conceptualised by Skyports and Foster + Partners.

The UAE has been a testing ground for global players like Germany’s Volocopter, China’s XPeng, and Beta Technologies from Vermont, USA. Beta Technologies recently formed a partnership with UPS for demonstration flights.

CHALLENGES AND THE ROAD AHEAD

While the UAE is on the cusp of a transportation revolution with a market value projected to reach $100 billion by 2030, challenges abound. Regulatory hurdles, cybersecurity threats, and divergent vehicle regulations in the Gulf region pose significant obstacles. Yet, the UAE is diligently working on transitioning from its smart-city policy framework to detailed policies, regulations, and standards, paving the way for the acceptance of higher-level autonomous vehicles.

In a region brimming with anticipation, the consensus is clear: the future of transport in the Middle East will be reshaped by algorithms, sensors, artificial intelligence, and an array of advanced self-driving vehicles. With the global smart transport sector set to skyrocket from $48.54 billion in 2022 to a staggering $404 billion by 2032, the UAE stands on the brink of transformative growth over the next decade. The issuance of the world’s first national vertiport regulations in December 2022 marks a pivotal step in realising this vision.