ABU DHABI (Reuters) - If you're a Chinese robotaxi company, the Gulf has become the place to be, attractive for a regulatory environment that is embracing the technology and robust demand for ride-hailing services.

Their enthusiasm has been evident in a flurry of recently announced expansion plans. This week, Pony.ai became the third Chinese robotaxi company after rivals Baidu and WeRide to unveil an agreement with Dubai's Roads and Transport Authority in the United Arab Emirates.

It plans to start trialling its vehicles in the city this year with full driverless operations slated to start in 2026.

WeRide also said this week it would be expanding into Saudi Arabia, where it has been testing its vehicles in cities like Riyadh, adding that it expects commercial services to start in late 2025.

That follows its launch of fully driverless robotaxi trials in the UAE's Abu Dhabi this month with commercial rides due to be rolled out from the end of June. It also soon plans to launch in Dubai.

Baidu outlined plans in March to deploy "dozens" of robotaxis in partnership with UAE-based Autogo in Abu Dhabi with a goal to start commercial operations by 2026. It also aims to start trials in Dubai this year.

The UAE "is relatively open but they are also careful and pragmatic on details," said Zhang Liang, a general manager in Baidu's autonomous driving unit Apollo, who oversees European and the Middle East markets.

"We are actually happy to see positive and active competition and we won't be afraid of such competition," he said at the World New Energy Vehicle Congress in Abu Dhabi last week.

Worried about worsening traffic congestion and a shortage of taxi and ride-hailing services that largely rely on migrant workers for their drivers, Dubai has set a goal of having 25% of its daily transportation be smart and driverless by 2030.

Abu Dhabi's target is 25% of total trips by 2040 while Saudi Arabia is aiming for 15% by 2030.

"Middle East and this kind of market, they already have the infrastructure, they have the capital, they have the ambition, which is very important. So that's why everybody is queuing up here," said Thaha Muhammed Abdul Kareem, a Qatar-based independent consultant.

Both Pony.ai and WeRide have partnered with Uber in the region so their vehicles can be ordered through the Uber app.

FUTURE US-CHINA BATTLEGROUND?

The Gulf may become the region where Chinese and U.S. robotaxis go head to head for the first time.

Tesla CEO Elon Musk said during a Gulf tour with U.S. President Donald Trump this month that he would take Cybercab robotaxis to Saudi Arabia, although he didn't mention a timeframe.