Middle East Emerges as Prime Destination for eVTOL Companies
Unraveling the Allure of the Middle East for eVTOL Innovators
In recent times, Peak Flying Aviation Technology's 2-ton eVTOL, the Carey Seagull, successfully completed its maiden flight at Falcon General Aviation Airport in Al Ain, UAE, following approval from the UAE General Civil Aviation Authority (GCAA). This marks the first overseas flight of a Chinese eVTOL weighing over two tons and the first long-distance flight of its kind in the Middle East.
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From collaborators to investors, the growth trajectory of numerous eVTOL companies often features a Middle Eastern footprint. Industry insiders cite the region's strong economic foundation and relaxed regulatory environment as key factors driving this trend.
Peak Flying Aviation Technology views the Middle East as a pivotal market for its eVTOL deployment overseas. The company has inked collaboration agreements with UAE-based E&H Company, Falcon Aviation Services, and Multi Level Group (MLG) to roll out a series of initiatives related to eVTOL technology implementation and market operations in the Middle East.
In November 2023, Peak Flying Aviation Technology unveiled its manned eVTOL aircraft, the Prosperous Dragon, at the 18th Dubai International Airshow. The company signed a cooperation agreement with Falcon Aviation Services, a business aviation services provider, to jointly promote the development of Advanced Air Mobility (AAM) in the Middle East.
In December 2023, EHang Intelligent announced its entry into the Abu Dhabi "Smart and Automated Vehicle Industry (SAVI) Cluster" and forged a long-term strategic partnership with logistics technology company Wings Logistics Hub to introduce EHang Intelligent unmanned eVTOL aircraft into the UAE. As part of the strategic partnership, Wings Logistics Hub plans to procure up to 100 EH216 series eVTOLs from EHang Intelligent, with deliveries scheduled to commence in the first quarter of 2024.
Besides market expansion in the Middle East, some Middle Eastern capital has also invested in domestic eVTOL enterprises. In March this year, Shanghai-based eVTOL company ShiDe Technology completed a Series A funding round of $20 million, with prominent overseas investors making strategic investments in ShiDe Technology, aiming to develop "flying taxis" applications in the Middle East. It is understood that one of these overseas investors is a certain Middle Eastern capital.
In addition to domestic ventures, many foreign eVTOL companies are actively entering the Middle East market. In February this year, US eVTOL company Joby signed a final agreement with the Dubai government to commence air taxi operations in the UAE and secured exclusive rights to operate in Dubai for six years.
Subsequently, in April, Joby announced the signing of a multilateral memorandum of understanding with the Abu Dhabi Department of Municipalities and Transport, the Abu Dhabi Department of Economic Development, and the Abu Dhabi Department of Culture and Tourism, laying the groundwork for Joby to establish and expand air taxi services in Abu Dhabi and other regions.
A spokesperson for Peak Flying Aviation Technology revealed that besides the cargo version, the company also plans to expand into the manned eVTOL market in the Middle East. However, due to the certification plan for manned eVTOLs scheduled for completion in 2026, progress may be slightly delayed. Nonetheless, manned eVTOLs are expected to be a focal point in the future eVTOL market. "There are more application scenarios in the Middle East, and the economy there is relatively prosperous," they added.
Earlier, Yue Tingting, Vice President of Future Drones, also stated that many of their small and medium-sized drones are exported to the Middle East. "There are many oil fields in the Middle East, and some drones are used for oil field inspections."
Industry insiders noted that eVTOL companies choose the Middle East due to economic factors as well as the region's relatively relaxed regulatory environment and high tolerance for emerging technologies. "EHang initially played in Austria, and lenient regulations were also an important factor," they said.
Furthermore, the abundance of airspace and lower management costs also contribute to companies' rush to the Middle East.
It is reported that in February 2023, the UAE and Dubai approved the design model of the Dubai Flying Taxi Vertical Take-off and Landing Station at the World Government Summit, with the station expected to commence operations within three years.
