Pony AI Inc (PONY) saw its stock surge 5.09% in a 24-hour period on Thursday, as investors reacted positively to the company's expansion plans in the Gulf region. The Chinese robotaxi maker has become the latest to announce its entry into the United Arab Emirates' burgeoning autonomous vehicle market.

According to recent reports, Pony.ai has signed an agreement with Dubai's Roads and Transport Authority to introduce its robotaxi services in the city. The company plans to start trialing its vehicles this year, with full driverless operations scheduled to commence in 2026. This move aligns with Dubai's ambitious goal of having 25% of its daily transportation be smart and driverless by 2030.

The Gulf region has become increasingly attractive for robotaxi companies due to its welcoming regulatory environment and strong demand for ride-hailing services. Pony.ai has partnered with Uber in the region, allowing its vehicles to be ordered through the Uber app. The company also aims to integrate its robotaxi services with Dubai's existing metro and tram routes, potentially creating a seamless transportation network.

This expansion into Dubai is part of Pony.ai's broader strategy for large-scale commercial deployment. The company, which currently operates a fleet of 300 robotaxis in China, aims to ramp up its global fleet to thousands of vehicles in the next two years. With test permits already secured in the United States, South Korea, and Luxembourg, Pony.ai's move into the Gulf market signals its growing international ambitions and could position the company as a key player in the global autonomous vehicle industry.