Dubai is expected to be the first city to feature autonomous electric taxis, with a 200-strong fleet set to join its roads by 2020.
According to Gulf News, the UAE government purchased 200 Tesla Model S and Model Xs the day after Elon Musk announced the opening of the carmaker's Middle East headquarters.
The cars' autopilot function will first be tested by Dubai's Roads and Transport Authority (RTA), with a human driver behind the wheel in case of emergencies.
However, they will be capable of fully-autonomous driving and this function will be phased in later.
Director general and chairman of the board of executive directors of the RTA, Mattar Al Tayer told Gulf News that the purchase is part of the 'Dubai Smart Autonomous Mobility Strategy aimed at transforming 25 per cent of total journeys in Dubai into autonomous journeys by 2030'.