WeRide (NASDAQ:WRD), the Guangzhou-based autonomous driving unicorn, has officially halted its robotaxi fleet in Dubai.
The decision comes as an escalating conflict involving the U.S., Israel, and Iran roils key hubs in the Middle East—a region that has recently become the primary global expansion target for Chinese autonomous vehicle (AV) firms.
While operations in Dubai are on hold, WeRide stated that its fleets in Abu Dhabi and Riyadh continue to provide regular public commercial services.
However, the company has implemented strict safety protocols for its local workforce, instructing all employees in the region to work from home and avoid unnecessary travel to ensure their well-being.
The suspension highlights the sudden volatility in a market that had, until recently, offered Chinese firms a "friendly" alternative to the regulatory and political headwinds they face in the West.
Drawn by robust demand for premium ride-hailing and supportive government frameworks, majors like Baidu’s (NASDAQ:BIDU) Apollo Go and Pony.ai (NASDAQ:PONY) have also been forced to recalibrate.
Apollo Go, which launched commercial services in Abu Dhabi just this January, confirmed it is in "close coordination" with local regulators.
While the company is monitoring the situation, it stated it would adjust service levels as necessary to prioritize staff safety and maintain an orderly response to the local environment.
Pony.ai, which is currently in the testing phase in the region, briefly suspended all on-road activities in Doha and Dubai.
While the firm resumed testing in the Qatari capital on Monday, its Dubai-based vehicles remain grounded. The company indicated it will only resume testing in the emirate at an "appropriate time" once safety conditions are verified.
The retreat, even if temporary, represents a pivot for an industry that has spent the last three years aggressivey establishing the Gulf as its first major overseas outpost.