Pony AI Inc (PONY) shares soared 5.04% in pre-market trading on Thursday, following the announcement of the company's strategic expansion into the Dubai robotaxi market. This move marks a significant step in Pony.ai's international growth strategy and positions the company as a key player in the rapidly developing autonomous vehicle industry in the Gulf region.

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 begin trialing its vehicles this year, with full driverless operations scheduled to commence in 2026. This expansion is further bolstered by Pony.ai's partnership with Uber, which will allow users to order Pony.ai's robotaxis through the Uber app, potentially increasing the accessibility and adoption of their services.

The Gulf region, particularly the United Arab Emirates, has emerged as an attractive market for Chinese robotaxi companies due to its welcoming regulatory environment and ambitious targets for autonomous transportation. Dubai aims to have 25% of its daily transportation be smart and driverless by 2030, creating a conducive atmosphere for companies like Pony.ai to thrive. This expansion not only represents a significant opportunity for Pony.ai but also aligns with the company's broader strategy for large-scale commercial deployment, as it aims to ramp up its global fleet to thousands of vehicles in the next two years.