Automotive
Driving Growth Through Mobility for 53 Years
As the UAE marks its 53rd National Day, the nation celebrates not only its unity but also its emergence as a global leader in innovation and economic resilience. Central to this story is the automotive industry, a key player in shaping the nation’s economic landscape and mobility solutions. From luxury vehicles adorning its bustling streets to cutting-edge advancements in electric and autonomous technology, the UAE has positioned itself as a hub for automotive innovation in the region.
By Srijith K N
The country’s focus on sustainability and smart mobility has catalyzed investments in infrastructure, including EV charging networks and green mobility corridors, further underscoring its status as a pioneer in future-ready transportation. These advancements also reflect the nation’s commitment to sustainability, a cornerstone of its vision for the future.
Within this thriving ecosystem, the car rental industry has emerged as a dynamic sector, mirroring the UAE’s strategic focus on mobility and economic diversification. Rahul Singh, Managing Director of AA AL Moosa Enterprises – Car Rental Division, highlights how this sector has become a key driver of growth. “The UAE’s economy thrives on its strategic focus on travel and tourism, which contributed 11.7% of GDP in 2023. This success is mirrored in the expanding demand for car rental services, with the market growing 10% year-on-year in 2023 to USD 1.77 billion and projected to reach USD 214.70 million annually by 2029.”
Singh attributes this growth to the UAE’s ability to attract millions of international visitors—17.15 million in Dubai alone in 2023—many of whom rely on rental vehicles to explore the nation’s iconic destinations. “This surge reflects a shift towards flexible and cost-effective mobility solutions, driving direct and indirect economic benefits for the country,” he adds.
The role of car rentals becomes even more significant during National Day, as they facilitate seamless mobility for residents and visitors alike to immerse themselves in the celebrations. Beyond offering convenience, rental services cater to diverse needs—from premium sports cars that embody luxury to family-friendly SUVs and eco-conscious electric vehicles.
Electric vehicles (EVs) are particularly transformative, aligning with the UAE’s ambitious green mobility goals. The car rental industry’s increasing integration of EVs reflects a growing consumer preference for sustainable travel solutions. This trend not only supports the nation’s net-zero aspirations but also positions the UAE as a leader in environmentally responsible tourism and transportation.
As the UAE celebrates its 53rd National Day, the car rental and broader automotive sectors stand as pillars of the country’s vision for growth, sustainability, and global leadership. Together, they drive the narrative of a nation that remains steadfast in its pursuit of innovation, inclusivity, and a brighter, greener future.
Automotive
Zeekr UAE and AWR Automotive Unveil Redesigned Flagship Showroom on Sheikh Zayed Road in Dubai
Zeekr UAE and AWR Automotive are proud to announce the unveiling of the redesigned Zeekr flagship showroom on Sheikh Zayed Road in Dubai. The new space brings together contemporary design, refined hospitality, and personalised customer engagement, reflecting the partners’ confidence in the UAE’s expanding electric mobility market.
The showroom gives customers a clear and practical way to explore electric mobility. Zeekr product specialists will provide personalised guidance around the Zeekr range, charging, intelligent technology, performance, test drives, and after-sales care. Interactive touchscreen TVs allow customers to explore vehicle configurations in detail and place orders directly from the showroom. Customers can also discuss their individual driving requirements and ownership considerations in a relaxed setting, helping them understand how electric mobility can support everyday journeys, family travel, and longer drives across the UAE.
At the centre of the redesigned showroom is the Zeekr Lounge, a refined hospitality space for customer appointments, coffee conversations, and owner gatherings. The lounge brings a more personal dimension to the retail experience, providing a welcoming place for guests to spend time with the brand before or after a consultation or test drive. A partnership with Maison 7, AWR Group’s luxury lifestyle brand, adds curated homeware and elegant décor, creating a warm, lifestyle-led environment that complements Zeekr’s progressive design philosophy and brings the showroom’s material, colour, and craftsmanship story to life.
“The UAE’s electric mobility market is advancing quickly, and customers want the confidence that comes from clear guidance, a trusted local partner, and an ownership experience designed around their needs,” said Roberto Colucci, Director of EVs, AWR Automotive. “Our redesigned flagship showroom brings those elements together, creating a destination where customers can experience Zeekr’s technology, design, and hospitality while exploring how electric mobility can fit their everyday lives.”
The redesigned flagship also includes two AC charging points, giving customers an added practical touchpoint with the Zeekr ownership experience during their showroom visit. Two dedicated vehicle delivery bays provide an elevated handover setting, allowing every delivery to become a more personal and memorable moment for customers and their families. The flagship will also serve as a platform for product introductions, owner engagement, and curated events, bringing customers and electric mobility enthusiasts together around premium electric driving. Customers are invited to visit the showroom on Sheikh Zayed Road to experience the Zeekr range, speak with a product specialist, and book a personalised test drive.
AWR Automotive is Zeekr’s official distributor in the UAE. Supported by decades of automotive expertise and an established national network of showrooms and service centres, it brings the Zeekr ownership experience to customers from first discovery through to long-term support, helping advance premium electric mobility across the region.
Automotive
DiDi’s Next-Generation Robotaxi R2 Begins Fully Driverless Service Trials Ahead of Global Deployment
DiDi Autonomous Driving began fully driverless service trials with its next-generation Robotaxi R2. The milestone marks a new stage for R2, as the next-generation Robotaxi moves beyond technology validation into real-world mobility operations, demonstrating capabilities that could support the company’s planned testing in the United Arab Emirates and future global deployment.
In the fourth quarter of 2025, DiDi Autonomous Driving began round-the-clock fully driverless passenger testing in selected demonstration areas in Guangzhou and Beijing, with operations running safely and steadily since then. Building on this operational experience, R2, jointly developed by DiDi Autonomous Driving and GAC Aion, is a purpose-built Robotaxi designed for global deployment. It combines DiDi Autonomous Driving’s Level 4 full-stack software and hardware with a vehicle platform developed specifically for driverless passenger service, designed with safety, operating efficiency and in-cabin experience.
The next-generation Robotaxi R2 is equipped with 33 sensors, including LiDAR, cameras, 4D millimeter-wave radar, infrared cameras and audio sensors, providing comprehensive perception across a range of driving environments. Its triple-domain fusion central computing platform delivers more than 2,000 TOPS of GPU computing power and supports lower-latency decision-making in complex urban conditions. The vehicle platform also meets five-star safety standards in China and Europe (C-NCAP and Euro NCAP) and incorporates a multi-layer redundancy system.
Built around user needs, R2 maximizes rear passenger space and features high-angle adjustable seats. It is equipped with a 17.3-inch ceiling-mounted screen with entertainment features, as well as an AI voice interaction system that allows riders to complete PIN verification and start the trip, adjust the air conditioning, open the windows and control the ambient lighting through voice commands. These elements reflect DiDi Autonomous Driving’s view that a successful Robotaxi service combines advanced autonomous-driving capability with an intuitive and comfortable passenger experience.
The UAE will serve as DiDi Autonomous Driving’s first international market. In April 2026, at the China-UAE Business Promotion Event, the company confirmed that it is working with local partners to advance Robotaxi applications, with local testing and pilot initiatives planned within the year. The planned testing comes as the UAE continues to develop its regulatory framework for autonomous vehicles. In Dubai, the Autonomous Transportation Strategy aims to shift 25% of total transportation to autonomous mode by 2030, with taxis among its priority application sectors. DiDi Autonomous Driving has also joined Abu Dhabi’s Smart and Autonomous Vehicle Industries (SAVI) cluster and established a strategic partnership with the Abu Dhabi Investment Office (ADIO) to support innovative autonomous-driving applications, AI talent development and ecosystem building.
The launch arrives as autonomous mobility moves from vision to operational reality across the UAE. On 19 August 2026, the Government of Dubai Media Office reported that Robotaxi operations in Dubai had traveled more than four million kilometers of autonomous operation and completed 7,613 driverless passenger trips since launch, achieving a 97% customer satisfaction rate. The emirate’s Robotaxi fleet includes 144 vehicles, with 48 in active operation, and contributes to the 2030 target set out in the Dubai Autonomous Transportation Strategy.

For DiDi Autonomous Driving, the opportunity involves more than introducing a vehicle to a new market. The company aims to localize its technology, operating model and passenger experience with UAE partners, in line with the country’s smart-mobility priorities. The R2 milestone offers a foundation for that next phase by demonstrating how a purpose-built Robotaxi can serve passengers in complex urban environments through integrated vehicle engineering, AI capabilities and disciplined fleet operations. Through its international expansion, the company seeks to contribute proven autonomous-mobility expertise while supporting the development of a safe, intelligent and sustainable transport ecosystem in the UAE and other international markets.
Automotive
Udrive’s data reveals how freedom of choice is shaping UAE Millennials’ mobility habits
Udrive, the UAE’s leading car-sharing platform, has released new proprietary data showing how app-based car access is becoming part of everyday work, school and leisure travel across the UAE. Customers aged 30 to 40 account for 45% of users, while mornings and weekends are the busiest periods across the platform. Residential communities and business districts generate the highest demand, showing how app-based car access is becoming part of everyday travel across the UAE.
This core age profile points to a generation seeking greater freedom to choose when, how and what they drive as they balance professional and family commitments. Activity rises during the morning as customers head to offices and schools, then builds again around afternoon pick-up times as families manage school collections and after-school activities. At weekends, shopping, leisure and social visits bring more customers onto the road.
This reflects the way many people live across the region, where changing jobs, growing families and new priorities can lead residents to move homes more frequently. From housing and entertainment to transport, greater choice and access are becoming increasingly important, allowing services to adapt as people’s lives change.
In Dubai, Karama, Al Nahda, Dubai Marina and Al Rigga rank among the most popular areas for vehicle pick-ups and drop-offs, with demand concentrated around residential neighbourhoods and nearby parking areas. Office-led travel also accounts for a major share of daily ridership, with Barsha Heights, Business Bay and the area around Emirates Headquarters among the strongest locations. These journeys include daily commutes, meetings and trips that involve several stops or fall outside fixed public transport schedules.
The Ford Territory, BYD QIN and MINI Cooper rank among the most preferred vehicles on the platform, with SUVs continuing to attract strong demand. Vehicle needs can change quickly, with a customer choosing a compact car today before moving to an SUV as their family grows, or upgrading to try something different. Long-term rental allows the vehicle to adapt to the customer’s life rather than tying them to the same car for several years.
“Life in the UAE moves quickly, and people’s circumstances and tastes can change considerably within a few years. We are seeing the same mindset with cars, as people want the convenience of having a vehicle alongside the flexibility to choose one that suits their needs today. Our data helps us understand how those needs are evolving so we can position vehicles effectively and build a fleet around the way residents move. At Udrive, our vision is to make mobility seamless, accessible and data-driven, ensuring our service continues to evolve with the needs of residents across the country, ” said Hasib Khan, Founder and CEO of Udrive.
Through the Udrive app, customers can locate, book and unlock a vehicle in minutes, with flexible rental options by the minute, hour, day, week or month. The service is designed around convenience and transparency, with zero deposit, no paperwork, office visits or delivery fees, and inclusive benefits such as free fuel and parking.
Udrive operates a fleet of over 2,000 vehicles across Dubai, Abu Dhabi, Sharjah and Ajman and has completed more than three million rentals. In 2025, customers travelled more than 45 million kilometres and completed over half a million trips, while registrations increased by 14% compared with 2024. Residents account for 90% of the customer base, demonstrating strong everyday demand for flexible car access.
As cities grow and travel patterns become more varied, Udrive will continue expanding its coverage and fleet choice across the country. The latest data shows car sharing becoming a regular part of commuting, family routines and leisure travel, giving residents access to a vehicle when needed.
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