On October 8, 2026, Weihong Group's indirectly wholly-owned subsidiary entered into a cooperation agreement with Kuwait's IPGT to establish and develop artificial intelligence garage systems in nine Middle Eastern countries, with a cooperation period of 5 years. The agreement covers the six countries of the Gulf Cooperation Council, as well as Egypt, Iraq, and Jordan, with a long-term goal of building approximately one million smart parking spaces. If the project is fully implemented, the total contract amount is expected to exceed HKD 100 billion. The window of opportunity for Chinese intelligent parking equipment companies in the Middle East market is opening, as they move from product exports to system support.

Royal background channel value

IPGT is a company registered and established in Kuwait, mainly engaged in infrastructure and high-tech product system business in the Middle East. Its shareholders and core members of the management team include Sheikh Ali Khalifa Sabah, a member of the Kuwaiti royal family who has served as Kuwait's Minister of Finance and Minister of Oil, as well as the Chairman of the Organization of the Petroleum Exporting Countries. He has significant business resources in the Middle East region. Smart parking projects in Middle Eastern countries often require long-term partnerships with municipal departments and real estate developers, with localized channels and government and business resources being key barriers to entering the market. The royal background of IPGT and the resources of the Kuwaiti government provide a channel foundation for the promotion of the project in Kuwait and even the Gulf region. However, royal resources are only a channel advantage, which does not necessarily mean that the project will be implemented. Subsequent processes such as bidding, technical evaluation, and funding implementation still need to be carried out.

Million parking spaces gap to be filled

The Middle East is one of the regions with the highest car ownership rates in the world, with some countries having over 500 cars per thousand people. With the acceleration of urbanization and the continuous increase in car ownership, ground parking spaces are becoming increasingly scarce, and intelligent three-dimensional garages have become the core solution to solve parking difficulties. The parking problem in Kuwait is particularly prominent, and Kuwait City has long faced a severe shortage of parking spaces. In September 2026, the Municipal Council approved a plan to establish temporary parking lots using government land and areas along roads, and is currently considering sustainable parking regulations that incorporate AI technology into parking lot design. The market size of intelligent parking systems in the entire Gulf region is expected to reach approximately 260 million US dollars by 2025, and is projected to grow to 371 million US dollars by 2032, with a compound annual growth rate of 5.5%. The hardware part accounts for about 32% of the market, with the most concentrated demand for cameras, sensors, smart meters, and display systems. Keywords: Middle East News Network AI、 Infrastructure

Equipment supply chain welcomes opportunities

The main equipment categories involved in intelligent parking systems include three-dimensional garage mechanical structures, intelligent control systems, sensors and cameras, charging pile interfaces, security systems, and payment and management systems. Chinese companies have mature export experience in these categories. The three-dimensional parking equipment of Jiulu Parking sent to the Middle East has been specially upgraded to withstand high temperatures. The smart parking solution of Koto Corporation has entered core scenarios in the Middle East such as Dubai Shopping Center, and has been specially adapted for the high temperature of 50 degrees Celsius and Arabic license plates in the Middle East. Jieshun Technology's Intersec Dubai 2026 and Shenzhen Yifeng Automation's intelligent three-dimensional parking products have been sold well in dozens of countries and regions including the Middle East, Southeast Asia, and North America. It should be noted that the million parking spaces are only a long-term planning goal, and the procurement demand needs to be gradually released with the implementation of the project, not a centralized bidding in the short term. The agreement stipulates that during the cooperation period, both parties shall not collaborate with third parties to launch similar systems in the Middle East. This exclusive clause constitutes a certain channel lock for Weihong Group, but the agreement itself is a non binding framework document. Weihong Group's net loss for the year 2025 is approximately 72.6 million Macau dollars, and bank loans and overdrafts of approximately 57.6 million Macau dollars are overdue, putting pressure on working capital. Equipment companies need to review payment terms and be alert to the risk of large accounts receivable when participating in the project's supply chain.Editor/Gao Xue