Faraday Future Bets Big on UAE with AI, Web3, and Luxury EV Push

RAS AL KHAIMAH, UAE – December 29, 2025

Faraday Future, the California-based intelligent electric vehicle company, has made a significant strategic pivot toward the Middle East, signaling a bold new chapter in its turbulent history. The company announced a strategic partnership with RAK Digital Assets Oasis (RAK DAO) and confirmed key vehicle deliveries in the United Arab Emirates, moves that aim to fuse its luxury EVs with the region's burgeoning high-tech ambitions.

The centerpiece of the announcement is a non-binding Memorandum of Understanding (MOU) between Faraday Future Middle East and RAK DAO, a state-backed innovation hub. This agreement lays the groundwork for collaboration on artificial intelligence, Web3, and embodied intelligence, positioning the automaker not just as a car manufacturer, but as a technology ecosystem partner in one of the world's most forward-looking regions.

A New Frontier: Blending Mobility with AI and Web3

Faraday Future's partnership with RAK Digital Assets Oasis goes far beyond a simple sales strategy. The collaboration intends to establish joint research and innovation centers in the UAE, focusing on developing and testing next-generation technologies. This aligns perfectly with the UAE's national strategy, which aims to establish the country as a global leader in artificial intelligence by 2031 and a premier hub for Web3 development.

RAK DAO is described as a "future-focused urban development platform" designed to integrate technology, capital, and talent. For Faraday Future, this provides a launchpad to embed its "3rd aiSpace" concept—a vision of the vehicle as an intelligent, connected living space—within a real-world smart city environment. The MOU suggests a future where Faraday Future's vehicles could become integral components of a digitally native infrastructure, interacting with a city's AI and Web3 ecosystems.

This initiative taps into the UAE's massive investment in its digital future. The nation has already poured billions into AI infrastructure, including the ambitious 5-gigawatt UAE–US AI Campus in Abu Dhabi. With over 1,450 active Web3 firms, the country is creating a fertile ground for the kind of advanced, AI-driven mobility solutions that Faraday Future claims to be developing.

High Stakes in the Desert

While the vision is ambitious, the move into the Middle East is a high-stakes gamble for a company that has faced significant financial headwinds and production delays since its founding in 2014. Industry analysts have maintained a cautious outlook on the company's stock (NASDAQ: FFIE), and its path to profitability remains a subject of intense scrutiny. The "non-binding" nature of the MOU means the promised collaborations still require definitive agreements to become reality.

This expansion can be seen as a critical effort to secure a more stable future. The UAE offers access to a new, capital-rich market less saturated with established EV brand loyalties. By aligning with government-backed innovation hubs, Faraday Future could potentially unlock new funding streams and strategic support that have been difficult to secure elsewhere. The company has already established a 108,000-square-foot regional factory in Ras Al Khaimah and announced plans for a Phase II expansion to boost localized production.

However, scaling production remains a monumental challenge. The company’s 1.1 million-square-foot FF AI-Factory in California, which has absorbed around $300 million in investment, is tasked with producing both the flagship FF 91 and the new FX models. Executing its ambitious global production plans, including the UAE expansion, will require substantial and sustained capital investment, making the success of this Middle East venture paramount to its long-term survival.

The Tale of Two Vehicles: From Ultra-Luxury to Mass Market

Underscoring its strategic push, Faraday Future has completed deliveries of its two distinct vehicle lines to prominent figures in the UAE. The company finalized the delivery of its $309,000 FF 91 2.0 Futurist Alliance to Hebron Sher, CEO of ZEVO. This ultra-luxury crossover, limited to just 300 units globally, boasts 1,050 horsepower, a 0-60 mph time of 2.27 seconds, and an interior featuring over 100 inches of screen space, positioning it as a direct competitor in the highest echelon of the EV market.

Simultaneously, the company delivered an FX Super One to RAK Innovation City itself, marking the second delivery of the model in the UAE after the first went to football legend Andrés Iniesta. The FX Super One represents a different strategic pillar. Positioned as a premium mass-market, AI-powered Multi-Purpose Vehicle (MPV), it aims to bring the technology of the FF 91 to a broader audience, with a target price between $70,000 and $100,000. With its spacious interior and advanced AI integration, the FX line is designed to disrupt the family and business MPV segment, competing with established players like the Cadillac Escalade.

This dual-product strategy allows Faraday Future to capture attention with its halo car, the FF 91, while laying the groundwork for volume sales with the more accessible FX series. The delivery of both models in the UAE demonstrates a clear intent to serve both the region's elite clientele and its growing professional class.

Tapping a Goldmine of Growth

Faraday Future is entering a market that is not just receptive but actively fostering an EV revolution. The UAE government is aggressively promoting sustainable transport, with a national goal for 50% of all vehicles on its roads to be electric by 2050. This is backed by concrete incentives, including free vehicle registration, reduced charging fees, and a rapidly expanding network of nearly 700 charging stations in Dubai alone.

The regional EV market is projected to reach nearly $9.5 billion by 2029, with Battery Electric Vehicles (BEVs) holding a dominant 65% market share in the UAE. While global giants like Tesla, VW, and a host of Chinese OEMs are also targeting the region, the market is young enough that brand loyalty is still up for grabs. For a company like Faraday Future, which has struggled to gain traction in more established markets, the UAE represents a unique opportunity. The combination of immense wealth, a tech-savvy population, and powerful government support creates an ideal environment for a brand built on luxury, innovation, and artificial intelligence. The challenges remain formidable, but Faraday Future's strategic entry into this dynamic market may be its most promising path forward yet.