Clean Motion and Averroes Tech aim for regional manufacturing boost with Gulf expansion

Clean Motion is stepping up its efforts to expand into the Gulf region, and it recently signed a memorandum of understanding with Averroes Tech Manufacturing, a Dubai-based company. This deal might see the Swedish EV maker go from just entering the market to setting up local assembly, and possibly even moving into full-scale manufacturing within the region.

According to both companies, the partnership aims to push Clean Motion’s products across the Gulf, starting off with a focus on the UAE. But, interestingly enough, it also leaves room for customizing products to suit local needs and for co-developing new commercial solutions. Both sides are framing this as more than just a straightforward sales deal, it’s about establishing a long-term industrial presence where governments are actively promoting electric mobility and encouraging local production.

Clean Motion has been eyeing opportunities in the Gulf Cooperation Council (GCC) area for quite some time. Christoffer Sveder, the company’s chief commercial officer, mentioned in the announcement that the Gulf region has been on their radar for years, and that the timing of this deal lines up with where they think the market is heading. Averroes describes itself as a Dubai-based energy and e-mobility company that plans to expand into Abu Dhabi. They bring to the table a strong local presence and regional execution skills, which are crucial for such ambitions.

Emil Cronholm Baumer, Averroes’s head of branding and growth, added that electric mobility in the Gulf now feels like a race to get the right products out there first. He pointed out that both companies see Clean Motion’s vehicles as well-suited for local conditions, and they want to create something durable in the area. Abdullah Al Farhan, the company’s co-founder and executive director, went a step further, viewing mobility as just one element of a broader energy strategy that also involves power generation, storage, and utilization.

The agreement encompasses Clean Motion’s current lineup, including EVIG, and extends to future vehicle models, modifications, and jointly developed solutions. This is particularly noteworthy because the Gulf market isn’t quite the same as European urban mobility markets. The climate is hotter, driving patterns differ, and fleet buyers often look for adaptable vehicles suited to local logistics. Instead of a simple export approach, both companies are positioning their partnership to meet those regional realities.

They also seem to be aligning their plans with the UAE’s broader industrial policies. The announcement connects the partnership to initiatives like “Make it in the Emirates,” the UAE’s Net Zero by 2050 Strategic Initiative, and the UAE Energy Strategy 2050. These policies aim to fast-track low-carbon transport options while promoting domestic manufacturing and increasing local content. For climate tech companies, that synergy is becoming even more crucial, especially since procurement, localization, and decarbonization push forward together in the UAE.

A recent update from a related company, as reported by Cision, gives a glimpse of the roadmap. It mentions a demonstration unit scheduled for June 2026, with the first commercial order expected in the fall of that same year. The update also states that the goal is to achieve at least 40% local content and strike a licensing deal by 2027. If they pull that off, it would be a significant shift, from just partnering to actually building local manufacturing capacity.

For Clean Motion, the Gulf could prove to be a testing ground for lightweight electric vehicles targeting last-mile logistics and fleet operations. That’s especially relevant in the UAE, where growth in e-commerce, urban deliveries, and sustainability goals are all encouraging companies to rethink their vehicle fleets. The appeal isn’t just about cutting emissions; these compact, energy-efficient vehicles also promise lower operating costs, easier charging, and better suitability for dense city environments.

For Averroes, this deal supports a broader, more integrated approach centered on clean energy infrastructure, not just vehicle sales. They’re looking to develop electric vehicles and battery systems tailored specifically to regional needs, emphasizing safety, performance, and sustainability. As part of that, local assembly, and eventually manufacturing, serves not just to control supply chains but also to build their brand presence in the region.

This partnership also mirrors a larger trend in the Gulf, where climate tech firms increasingly need to demonstrate how they can contribute to local capabilities instead of just exporting imported hardware. Especially in the UAE, where localization for industrial and energy projects has become a key part of attracting investment into clean energy and advanced manufacturing sectors.

Clean Motion is traded on Nasdaq Stockholm’s First North Growth Market. The company says it focuses on resource-efficient vehicles for urban environments, designing lightweight, low-energy vehicles with a long-term vision of pairing urban mobility with solar power. However, in the Gulf, that vision will now have to contend with different commercial and regulatory realities, which could pose new challenges and opportunities.

At present, this memorandum mainly signals intent rather than laying out a detailed manufacturing plan. Still, the language used suggests both sides are aiming for far more than just distribution, they’re betting on the idea that the Gulf’s next stage of electric mobility will favor companies that can adapt products, commit to local assembly, and build a solid industrial foundation.