Middle East Conflict in Chaos as China Shuts Down Businesses in Arab States

The escalation of the war between the United States and Israel against Iran has spread to other parts of the Middle East, impacting businesses operating in the region.

WeRide, the Chinese driverless taxi operator, has announced a temporary halt to its fleet in Dubai. Dubai is a hub for robotaxi development in the Middle East and is regarded as the most promising market.

Several Chinese robotaxi companies have pursued expansion into the United Arab Emirates, including Dubai, in recent years. Chinese entrepreneurs are attracted by friendly regulations and strong demand for online transport services.

WeRide has been operating in the UAE since 2021. The company emphasised that services are only paused in Dubai; operations in Abu Dhabi and Riyadh continue as normal.

“All employees in the Dubai region are currently working from home and limiting their movements to ensure their safety,” the company said, quoted by Reuters on Wednesday, 4 March 2026.

Two other Chinese robotaxi companies, Apollo Go by Baidu and Pony.ai, are still monitoring the situation in the Middle East.

“Apollo Go is coordinating closely with local regulators. We will adjust our services as needed to ensure staff safety and respond to local conditions,” the company said in a statement.

Baidu’s robotaxi unit launched its commercial service in Abu Dhabi in January. Pony.ai has suspended road testing in Doha and Dubai, before resuming activities this Monday (2 March) week. The company said it will resume testing in Dubai at the appropriate time.