BY AHMED ABO ELAZAYEM, MANAGING PARTNER, OSUS PROPERTIES
Autonomous vehicles (AVs), the catalyst for a deep transformation in how we build, value, and experience urban space, are gaining momentum fast.
As driverless vehicles begin to roll out on Gulf roads and AI-powered mobility becomes a national priority, the MENA region is positioning itself at the frontier of a shift that could redefine its cities, suburbs, and skylines.
The rise of the ‘distributed city’ Historically, proximity has driven real estate premiums in MENA’s dense urban cores, Downtown Cairo, central Beirut, West Bay in Doha, and, of course, Sheikh Zayed Road in Dubai. But autonomous mobility is challenging this paradigm. When your commute becomes time-efficient, productive, and stress-free, location becomes more elastic. In Dubai, for instance, the government has set a bold target that 25% of all transport to be autonomous by 2030. Dubai’s Roads and Transport Authority (RTA) has recently signed an MoU with Uber and autonomous driving company WeRide to launch pilot operations of autonomous vehicles in Dubai later this year through the Uber app. The initial phase will include safety drivers, with full commercial deployment of driverless services planned for 2026.
Also, Saudi Arabia’s Transport General Authority (TGA) signed a strategic agreement with Uber to launch autonomous vehicle services in the Kingdom. The initiative, aligned with the National Transport and Logistics Strategy and Vision 2030, will begin with pilot rides via the Uber platform before the end of the year, starting with safety drivers onboard. The collaboration aims to expand access to smart mobility through partnerships with AV technology providers, while establishing a regulatory framework focused on innovation, safety, and service quality across the transport sector.
As AV adoption grows, so too will the appeal, and value, of locations previously deemed ‘too far’. Real estate in second-tier suburbs and satellite towns across the Gulf, Levant, and North Africa will likely appreciate. This is what we might call the ‘60-minute city’, where quality of life and affordability rise as the tyranny of traffic fades. Saudi Arabia aims to have 15% of public vehicles in Riyadh operating autonomously by 2030 as part of Vision 2030’s smart mobility initiatives. Ahead of the 2022 FIFA World Cup, Qatar deployed self-driving electric shuttles, highlighting a potential push for broader AV integration. In parallel, the Ministry of Transport has issued an autonomous vehicle strategy with a 5-year roadmap.
From parking lots to parks
MENA cities, especially those developed during the oil boom, have long been built around the car. From sprawling parking zones in Riyadh to the underground car parks of Kuwait City malls, much of our real estate is designed to store vehicles, not people. However, autonomous, shared mobility upends this model.
Take NEOM, Saudi Arabia’s $500 billion mega-project. Designed from scratch, its core urban development, The Line, will have no cars and no streets. Instead, high-speed autonomous transit will zip residents end-to-end in 20 minutes, freeing up 95% of the land for nature and people. With this scenario, parking, traffic, and congestion will no longer be part of the equation.
Even in older cities like Cairo or Amman, AVs could dramatically reduce parking demand, allowing for the redevelopment of vast concrete spaces into green zones, residential developments, or commercial districts.
A second life for the periphery
While many GCC cities have focused their investments in high-rise urban cores, AVs could trigger a suburban renaissance. Gated communities outside Dubai are already built with lifestyle, greenery, and space in mind. As AVs reduce the friction of long commutes, these types of developments may become more desirable for locals as well as for digital nomads and expats seeking a balance between connectivity and calm. In Saudi Arabia, giga-projects near Riyadh are embedding smart mobility infrastructure from the ground up. Real estate investors with a long view should consider how these peripheral areas could leapfrog traditional urban areas in desirability, if designed with autonomy in mind.
Strategic recommendations for the MENA region stakeholders
The MENA region has a unique opportunity to leapfrog legacy infrastructure and design cities built for autonomy from the outset. Stakeholders must act strategically by developing for movement, not for parking and by reducing parking ratios in new developments. By creating flexible spaces, they can evolve with changing mobility habits. Stakeholders must also rethink zoning and allow for multi-use districts even in suburban zones, especially that AVs will blur the boundary between ‘work’ and ‘residential’. Also, integrating data and AI into design schemes has become more imperative. This will help understand movement patterns and adjust real estate pricing and development plans accordingly.
What if Downtown Dubai removed 50% of its parking?
Removing half of Downtown Dubai’s parking infrastructure would definitely free up thousands of land plots, right in the heart of one of the world’s most expensive real estate markets. Parkin Company, the largest provider of paid public parking facilities and services in the Emirate of Dubai already managed over 206,000 of paid parking spaces. Imagine what that land could become in the age of autonomous transport, where space itself is the new luxury.
The MENA region has always been a fast adopter of future-facing infrastructure. As AVs offer a new lens through which to imagine cities, integrating them promises changing how we move, where we live, how we invest, and what we build.
