Navya's Middle East deals; and more Middle East AI news
Carrington Malin
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Welcome to Middle East AI News!
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Some big news stories this week. First, stealing global headlines, are the new architectural concepts for planned 170 kilometre long city at NEOM, The Line. Appearing to come straight out of science-fiction, the designs seem to have prompted a wide range of responses from the media, construction industry and the public at large. See the news links at the end of this newsletter for the story.
Meanwhile, as a follow-up to last week’s announcement of the Dubai Metaverse Strategy, Dubai has announced the formation of a new ‘higher committee’ to oversee all digital intiatives including the metaverse strategy, chaired by Crown Prince, His Highness Sheikh Hamdan. I'm sure that that this is not the last that we will hear from Dubai government on the subject of metaverse.
My featured story this week is about autonomous shuttle manufacturer?Navya Group and its new deals in the region. After announcing a number of agreements this year, including an MoU with Saudi Arabia's Ministry of Transport and Logistic Services?and an MoU with Saudi emobility pioneer Electromin, this month sees the French startup add to this momentum. See my story below for the facts, and a little speculation!
My video of the week, is NEOM's new promo video for THE LINE, featuring visuals of the new architectural designs unveiled for the city.
Scroll down for these stories and much more!
Have a question or want to share your own perspective? Please do leave a comment or send me a message. I'd love to hear from you!
/Carrington
Middle East AI News – 28-Jul-22
[Sorry, no audio version this week!]
The little shuttle that could?
Navya Group, the autonomous shuttle manufacturer that has been running trial services in #Saudi Arabia and the #UAE over the past 3-4 years, appears well-placed to capitalise on Europe and the Middle East's latent first and last mile autonomous transport market. It has some innovative technology, some long-standing service trials and, it seems, currently very little competition in the region from other manufacturers. U.S. driverless shuttle startups are too busy with the North American market and the Chinese with China. However, the forerunners in this new autonomous emobility space don't have have it easy.
Formed in 2014, Navya launched its first 'Autonom' driverless electric shuttle in October 2015, after a number of global road tests. In 2020, it launched an improved version, the Navya Autonom? Shuttle Evo. However, Navya sold just 23 Autonom Shuttles in 2020 and 19 in 2021.?
In the Middle East, Navya currently has at least 12 driverless shuttles undergoing trials, specifically in Saudi Arabia and the UAE. The first trial started at Masdar City in Abu Dhabi emirate in 2018, while the largest trial is at NEOM, on Saudi's Red Sea coast.
Autonomous transport is very much still an emerging sector and so one would expect a bit of a wait before a manufacturer is able to move to 'default alive' from being reliant on venture capital. In the meantime, funding and investor confidence remains critical for product development and commercial expansion. The company is listed on Euronext (EPA: NAVYA), with the two biggest shareholders being French public transport group Keolis and French automobile equipment manufacturer Valeo, each with 9.6%. What Navya really needs is to ramp up its sales to prove that its product and business model can be a commercial success.
So, the three announcements made by Navya during July should resonate well with investors.
The first was the appointment of Pierre Guibert as Chief Financial Officer and member of the management board; the second, an investment deal with #Dubai-based Negma Group in the form of €36 million of convertible bonds; and third, the announcement that Navya has signed a full sales distribution agreement with Saudi emobility pioneer Electromin (following the signing of a MoU in March).
The agreement with Negma Group secures much needed funding with an initial cash injection of €2.5 million, buying Navya time to pull through other plans. The appointment of a permanent and experienced CFO, should assure investors that the company is taking the company in the right financial direction. Meanwhile, confirming the appointment of Electromin as a sales and distribution partner, positions the company well to expand its nascent Saudi business and business across the wider Gulf region.
July's news may also underscore the potential importance of the Middle East market in Navya's immediate future. Its new funding came via a Dubai-based investment firm and the deal with Electromin looks most promising. It is still early days for Saudi Arabia's electric vehicle sector, but Electromin is at the forefront of driving change and is currently rolling out the first national EV charging network. Navya has also upped the priority of the region in its plans over the last couple of years, with a trial put in motion with NEOM last year and the signing an MoU with Saudi Arabia's Ministry of Transport and Logistic Services to support the implementation of autonomous vehicles in the Kingdom earlier this year.?
On the other hand, the AV startup does seem to be spreading its bets far and wide, which has seen it knocking on doors from Canada and the U.S. through to Australia, and many places in between. 58 percent of 2021 sales came from outside Europe, so its global push does seem to be working to an extent. However, to put that in perspective, that percentage is probably the equivalent of 10 or 11 driverless shuttle orders, of which half could have been from Saudi Arabia and the UAE alone. So, does committing resources to become truly global, really make?much sense at this stage of the game?
One does wonder if now is not the time for Navya to double-down on its commitment to the Middle East and, in particular, the #GCC states that are hungry to embrace innovation. Will the new funding and Electromin deal encourage Navya to commit more resources and focus more on developing the region's market? If so, the GCC could well prove to have the key that helps Navya unlock the next level.?
Find out more about this story:
More News!
Here's some more interesting news from the past week:
Autonomous Vehicles
Defence
Robotics
Smart Cities
Startups
Video of the week
Watch: NEOM's latest promotion video for THE LINE
With visuals that look like they came from a Hollywood science-fiction movie and designed to leverage the most advanced engineering, solutions and materials imaginable, THE LINE is a landmark city that will stretching 170 kilometres. And, it will be encased in mirrored glass! Watch NEOM's latest promotion video!
Watch the video (1 minute)
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