(Yicai) Oct. 8 -- Nio said the Chinese electric vehicle startup has entered the Middle Eastern and North African region with plans to build a research and development center focused on intelligent driving and artificial intelligence technologies in Abu Dhabi.

Nio inked a deal with its largest shareholder CYVN Investments RSC to jointly establish the R&D center to co-develop a new car model tailored to the local market, the Shanghai-based carmaker announced on Oct. 5, adding that it also plans to start deliveries in the United Arab Emirates this quarter.

Nio also plans to set up a joint venture with CYVN, tentatively named Nio Middle East and North Africa, to develop a comprehensive service system for its vehicles in the region, it noted.

CYVN's extensive local resources will contribute to Nio's sustained growth in the MENA region, said William Li, founder, chairman, and chief executive of the automaker, while expressing optimism about smart EV opportunities in the market.

CYVN, an Abu Dhabi-based investment firm majority-owned by the local government, focuses on the intelligent mobility sector. It invested USD3.3 billion to take around 20.1 percent of Nio's issued and outstanding shares last year. However, Li remained the Chinese firm's controlling shareholder due to his super-voting rights.

The MENA region has emerged as a crucial overseas market for Chinese carmakers, alongside Europe and Southeast Asia. Middle Eastern companies have also been investing in China's new energy vehicle supply chain in recent years.

Countries such as Saudi Arabia and the UAE have crafted green economies and new energy transition strategies, an overseas business executive from a Chinese automaker told Yicai, adding that Chinese car manufacturers have a first-mover advantage in the NEV sector.

Middle Eastern firms' investments in Chinese carmakers often come with conditions, including building local factories and establishing R&D centers, aiming to enhance local NEV supply chain capabilities, the executive noted. In addition, investing in Chinese NEV makers allows them to share in the dividends of China's vast market, the person added.

While pushing for overseas expansion, Nio continues boosting its domestic market investments. On Sept. 29, it said it will increase the capital of its unit Nio China by CNY13.3 billion (USD1.8 billion), subscribing to newly issued shares worth CNY10 billion while three existing strategic investors will contribute the remaining funds.

Editors: Tang Shihua, Martin Kadiev