Middle East: “China Strengthens AAM Business Links with MidEast as Both Regions Embrace Low-Altitude Economy”
The phrase “Low-Altitude Economy” is becoming a buzzword in the Advanced Air Mobility (AAM) sector, particularly if you live in China or the Middle East.
Unfortunately, the West remains some way behind what some describe as “the next global economic tour de force” after the trends of computers, mobile phones, online shops and PC Games, which have all raked in quad-trillions of dollars. For now the world is on the cusp of the latest huge money-spinner, the Low Altitude Economy or LAE.
news.cgtn.com is featuring a series from China Media Group/Middle East Station, offering an analysis of important Middle East issues including politics, economics and culture. The media outlet recently published its first article in a series of observations on the development of the low-altitude economy in the Gulf region, highlighting the growing cooperation between Chinese companies and MidEast partners.
The feature begins, “The journey from Dubai International Airport to the iconic Palm Jumeirah usually takes 40 minutes by car. By 2026, this 40-kilometre trip is expected to be reduced to just 10 minutes, thanks to a new mode of transportation straight out of a sci-fi movie: air taxis. Passengers will be able to book this service online and travel to destinations at altitudes of 500 to 1,000 metres.”
It goes on, “Once a futuristic concept in novels and movies, flying over city skylines in low-altitude aircraft is becoming a reality in the Gulf countries. As these nations develop their low-altitude economies, Chinese enterprises are seizing the opportunity, becoming active participants in driving local industrial growth.”
Multi Level Group, EHang and ADIO seal strategic collaboration to drive eVTOL development in the UAE (April ’24)
The cooperation between the two is fascinating to watch. Instead of approaching countries like America for assistance, the Middle East is instead embracing China for workers to help construct NEOM and other fantastical building projects, in particular, highly skilled engineers. The U.S is no longer the automatic choice and instead is being unceremoniously shelved.
In recent years, Gulf countries have introduced national development strategies such as Saudi Arabia’s “Vision 2030,” the UAE’s “We the UAE 2031,” and Qatar’s “National Vision 2030.” The aim is to transform their economies from energy dependency to diversification, focusing on technological innovation, smart city development and sustainable growth. Low-altitude aerospace technologies, such as eVTOL aircraft and drones, align well with the sustainable market desires of the Middle East.
The UAE is leading the region in the low-altitude sector. Its capital city launched the “Dubai Horizon” project in 2022. This initiative focuses on planning low-altitude flight routes and drone landing points, with the first phase completed in 2023. The city is aiming to introduce air taxi services by 2026.
Saudi Arabia is also actively engaging in this sector. It has committed USD100 billion in investments by 2030 to include the low-altitude sector. The country is integrating air taxis into its highly ambitious NEOM project, having initially ordered 15 eVTOLs from the German company, Volocopter, while investing USD175 million for further strategic collaboration.
EHang’s Long Distance eVTOL VT-30 on Display at Abu Dhabi’s DRIFTx Event (April ’24)
Meanwhile, Qatar’s Ministry of Transport recently announced plans to trial electric air taxis by early 2025 and has begun applying for test flight permits with domestic agencies.
The feature points out, “The internal drive for economic transformation, national policy direction, the demand of a growing market, and strong economic power are key factors attracting low-altitude economy enterprises to the Gulf region.”
He Tianxing, VP of China’s leading eVTOL manufacturer EHang, told CGTN that the Gulf region boasts a high level of economic development; has a favourable investment environment; and a strong foundation for adopting and developing high-tech innovations.
He remarked, ”The region has a robust market demand and industrial desire for advanced air transportation that is safe, efficient, convenient and environmentally friendly, making it an ideal area for creating and developing new application scenarios.”
For example, the Gulf region, with its vast tracts of lands and relatively low population density, featuring only scattered urban and rural areas alongside extensive desert zones, coupled with harsh climate conditions, is an ideal environment for low-altitude craft like drones.
In oil and gas pipeline inspections, drones are resilient to the Gulf’s hot weather and can operate in a safe and stable way in remote deserts. Additionally, manufacturing companies can offer customised services based on client needs. Drones equipped with navigation, positioning, and camera functions significantly enhance inspection efficiency while maintaining relatively low operational costs.
Several Chinese technology companies have already entered the Middle East market including EHang, Shanghai Fengfei, XPeng Huitian, and Yufeng Future. Their products are applied across a number of sectors such as air transportation, logistics, firefighting, emergency rescue and pipeline inspections.
AutoFlight’s Prosperity eVTOL to Launch Services in UAE and Saudi Arabia
Not forgetting China’s other leading eVTOL company, AutoFlight, who is entering the MidEast by launching services in the UAE and Saudi Arabia within the next two years.
The feature continues, “Leveraging domestic industrial chain advantages and innovative technologies, Chinese companies are also exploring collaboration models better suited to the regional market. Overseas companies provide complete systems and technical support based on local client needs, while local firms handle low-altitude operations, including route applications, approvals, and pilot management.”
This collaborative model, according to one business insider, not only creates more job opportunities, but also helps Chinese companies expand their local client base. He commented, ”Such cooperation effectively empowers both parties, achieving a win-win outcome.”
Already, multiple Chinese firms have established partnerships with local companies in the Middle East. For example, three months ago, EHang signed a cooperation agreement with the Multi-Level Group and the Abu Dhabi Investment Office. The AAV company plans “to set up a regional HQ in Abu Dhabi and collaborate with local partners on production, flight operations, R&D, training, maintenance and overhauls,” according to He Tianxing.
Several entities from the UAE and Saudi Arabia have signed procurement contracts with Chinese firms for eVTOL aircraft, alongside further cooperation in areas such as aircraft battery charging and vertiport infrastructure.
Meanwhile, in March, China’s Shidi Technology secured USD20 million in Series A funding from international investors to advance its air taxi development in the Middle East. While the following month, Shenzhen Urban Transportation Planning and Design Research Centre revealed to investors that it will soon launch LAE operations in the Middle East. This includes designing low-altitude economy solutions and developing related platforms.
EHang’s EH216-L Logistics Drone on Display at DRIFTx (April ’24)
So, be careful America. Don’t get left behind. Agreed, both Joby and Archer Aviation have secured a strong foothold in the Middle East alongside UK-based Skyports Infrastructure, but the Chinese are increasingly on the business warpath and looking to dominate the LAE market.
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(News Source: news.cgtn.com)
(Top image: In May, board members of the Multi-Level Group experienced the first manned flight test of a Chinese-developed eVTOL aircraft in Abu Dhabi, UAE. Credit: EHang)
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