On October 5th, NIO and its strategic investor CYVN signed a strategic cooperation agreement, announcing the establishment of an advanced technology research and development center in Abu Dhabi, UAE, focusing on the research and development of intelligent driving and artificial intelligence technologies. On this basis, NIO will also jointly develop a new model tailored to the local market with CYVN.

At the same time, NIO announced its official entry into the Middle East and North Africa markets, starting product delivery in the UAE in the fourth quarter of this year, and building NIO's service system in the Middle East and North Africa. The business operation will be carried out through the joint venture established by NIO and CYVN - NIO Middle East and North Africa Company.

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NIO's chairman and CEO, William Li, said: "We are optimistic about the development prospects of smart electric vehicles in the Middle East and North Africa markets. As an important strategic investor and partner of NIO, CYVN has rich local resources and will help NIO's business grow continuously in the region. The cooperation between NIO and CYVN will further promote the company's globalization and technology innovation strategy, accelerating NIO's globalization process."

CYVN is an investment institution majority-owned by the Abu Dhabi government of the UAE, with a strategic focus on the intelligent mobility industry. In July and December last year, CYVN made two strategic investments in NIO, with a total investment amount of about $3.3 billion. After the completion of the investment transaction in December last year, CYVN beneficially held about 20.1% of NIO's issued and outstanding shares, becoming the largest shareholder of NIO. However, due to the existence of super voting rights, William Li remains the actual controller of the company.

At present, the Middle East and North Africa have become another major overseas market for Chinese car companies to compete in, in addition to Europe and Southeast Asia.

In June this year, Xiaopeng Motors announced the sale of two products, Xiaopeng G9 and Xiaopeng P7, to the Egyptian market; during this year's Beijing Auto Show, NIO Automobile and dealers in Egypt and Kenya signed an intention agreement, intending to enter the African market; at the same time, Ji氪001 and Ji氪X were officially unveiled in the Middle East market. In addition, Chinese car companies such as Chery, Geely, Changan, and BYD have also laid out in the Middle East.

A report released by Deloitte shows that the market capacity of Gulf countries is relatively small, but the per capita income is high and purchasing power is strong. For example, Saudi Arabia, the UAE, and others support new energy vehicle companies through government procurement and investment, and Middle Eastern consumers have a high awareness and willingness to purchase electric vehicle products.

While Chinese car companies collectively go overseas to enter the Middle East and North Africa markets, in the past few years, Middle Eastern capital has also been intensively investing in China's new energy vehicle industry chain.

In addition to CYVN's two equity investments in NIO, in October 2023, the Saudi Arabian investment group Al Faisaliah Group Holding Company signed an investment and strategic cooperation memorandum with Binli Automobile; in May 2024, Skyworth Automobile announced that the KAG group, controlled by a Saudi Arabian royal princess, signed a ten-year strategic cooperation discussion and contract signing with Skyworth Automobile, with a business plan of 10 billion yuan in the first five years. In addition, power battery and intelligent driving supply chain companies such as Pony.ai, Guoxuan High-tech, and Hongjing Zhijia have also won the favor of Middle Eastern capital.

The head of overseas business of a Chinese car company once said that countries like Saudi Arabia and the UAE have formulated strategies for green economy and transition to new energy, and China has a certain first-mover advantage in the field of new energy vehicles. Most of the investments by Middle Eastern capital in Chinese car companies will attach conditions such as building factories and research and development centers, which is beneficial to enhance the capabilities of the local new energy vehicle industry chain in Middle Eastern countries; in addition, the scale of China's new energy vehicle market is huge, and investing in Chinese new energy vehicle companies also helps Middle Eastern capital to share a piece of the cake from the development of the Chinese market.