US green mobility sector the first target for Neom’s newly launched investment fund: Saudi Arabia’s Neom is investing in US-based electric seaglider manufacturer Regent and US-based autonomous driving company Pony.ai to establish operations for both green vehicles in the smart city, according to two statements (here and here). The investment is being made through the Neom Investment Fund (NIF) established earlier this week.

First, the seaglider: The investment made by Neom is part of a multi-year partnership with Regent to establish electric seaglider passenger operations in the region, the statement notes. Regent will also establish a Middle East research, development, and training hub to support expansion in seaglider operations and infrastructure and conduct on-site testing to be ready for operational roll-out by 2025. The electric seaglider will be able to service routes up to 180 miles (290 kms) with existing battery technology, and routes up to 500 miles (805 kms) with next-gen batteries, all via existing dock infrastructure, according to their website. Neom’s undisclosed investment in Regent is the largest single contribution in the US company’s latest Series A funding round.

Next, Pony.ai: Neom is investing USD 100 mn in Pony.ai in parallel with setting up a JV to develop, manufacture, and deliver autonomous driving services, advanced vehicles, and smart vehicle infrastructure in Neom and other key markets in the MENA region. The JV will also establish a local autonomous vehicle manufacturing and R&D facility, according to the statement. Pony.ai has developed a wide range of vehicles, from all-electric passenger Robotaxis to long-distance freight trucks, according to its website.

Neom has been planting seeds to deliver its sustainable transport system: On Tuesday, Saudi oil giant Aramco and Enowa — Neom’s energy and water utility subsidiary — signed a joint development agreement to establish an e-fuel demonstration plant in Neom. Neom partnered with Oracle and NVIDIA in AI technology at LEAP23 earlier this year in efforts to incorporate AI and advanced robotics into its DNA, including promises of a fully autonomous transportation system for the smart city.

How can AI help the transport sector become cleaner? As electric and autonomous vehicle adoption increases, AI is increasingly being used to monitor and predict demand and usage of charging terminals, optimize battery usage, and improve safety and efficiency. Dubai’s Roads and Transport Authority (RTA) for example is using AI to improve its public bus service by shortening journeys, reducing fuel consumption, and increasing bus ridership using data gathered from smart cards, buses, and taxis.