Shares of Pony AI Inc (PONY) are soaring 10.51% in pre-market trading on Tuesday, following the company's announcement of a significant partnership with Dubai's Roads and Transport Authority (RTA). The autonomous driving technology company has entered into a Memorandum of Understanding (MoU) to deploy its advanced robotaxi fleet in Dubai, marking a major expansion into the Middle East market.

The collaboration aligns with Dubai's ambitious Self-Driving Transport Strategy, which aims to convert 25% of all journeys in the city to autonomous trips by 2030. According to the agreement, Pony.ai will initiate supervised trials of its robotaxi service later this year, with plans to transition to fully driverless operations by 2026. This partnership not only represents a significant step forward for Pony.ai's global expansion but also positions the company as a key player in Dubai's smart transport ecosystem.

Investors are reacting positively to Pony.ai's strategic move, recognizing the potential for growth in the autonomous vehicle market. The Dubai partnership adds to Pony.ai's existing operations in the United States, China, South Korea, and Luxembourg, further solidifying its position as a global leader in autonomous driving technology. As the company prepares to integrate its services with Dubai's multimodal transport network, market observers will be watching closely to see how this expansion impacts Pony.ai's long-term growth prospects and market valuation.