Fully autonomous vehicles could unlock $18.7bn for GCC region

“Achieving that goal will require coordinated regulation, infrastructure readiness, and above all, building public confidence in the technology – but the region has the means to deliver.”

The report identifies three tipping points that autonomous mobility must cross before widespread adoption:

• Readiness for pilot projects: where the technology proves itself in controlled conditions
• Commercial readiness: when systems can operate reliably in diverse, real-world scenarios and compete with existing alternatives – though government support remains crucial
• Readiness to scale: marked by full integration into the mobility ecosystem, broad user acceptance, and financial sustainability.

Mark Haddad, partner at Strategy& Middle East, said: “Relative to other markets, the GCC has a unique edge in autonomous mobility. With strong investment capacity, easier licensing pathways, and unrivalled testing grounds in its giga projects, the region can lead.

“The real challenge is moving beyond promising pilots to reliable, real-world deployment at scale. That will require not just innovation but government support, infrastructure readiness, and smart incentives.”

While the opportunity is immense, the report outlines important areas that must be strengthened for the region to unlock the full potential of FAVs. It emphasises that scaling success will hinge on enhanced coordination and the evolution of regulatory frameworks around safety, liability, and licensing. Public sentiment also plays a key role.

“The real challenge is moving beyond promising pilots to reliable, real-world deployment at scale. That will require not just innovation but government support, infrastructure readiness, and smart incentives”

The report also notes that regional infrastructure will need further development to support a fully operational FAV network. Some existing systems may require upgrades or repairs before new technologies can be introduced. There is also a possibility that early investments in infrastructure could be mismatched with future FAV requirements, leading to inefficiencies.

While the GCC has the financial capacity to support this transition, the report highlights the importance of long-term commitment and sustained funding to ensure progress in FAV deployment. Building public trust through reliable pilots, competitive pricing, and visible safety records is also important.

To build a leadership position, the study calls for comprehensive programme management that brings together governments, technology providers, and operators. Tailored pilot projects, regulatory sandboxes, and clear safety standards will be essential, alongside incentives and capital injections from national and sovereign wealth funds.