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Toyota’s Woven City Opens Its Doors: A Glimpse into the Future of Urban Living

On Monday, Toyota reached a major milestone with the completion of the first phase of its ambitious Woven City project. Nestled at the base of Japan’s iconic Mount Fuji, this futuristic “smart city” is set to welcome its first 100 residents this fall, with plans to expand the population to 2,000 over time.

Key Highlights

Woven City, Toyota’s groundbreaking “smart city,” is being developed at the foot of Mount Fuji in Japan. Announced in 2020, this innovative urban environment will serve as a testing ground for cutting-edge technologies in a real-world setting. The city is designed to explore advancements in key areas such as:

  • Autonomous Vehicles: Streets will be divided into distinct zones for pedestrians, cyclists, and self-driving cars, ensuring seamless mobility for all.
  • Robotics: The city will host robots designed to assist with daily tasks and infrastructure maintenance.
  • Artificial Intelligence (AI): AI will be integrated to manage everything from smart homes to energy grids, enhancing the city’s efficiency.
  • Internet of Things (IoT): A network of interconnected devices and systems will form the backbone of Woven City, fostering a truly integrated urban environment.

Design and Sustainability

The city’s innovative architecture comes from Danish architect Bjarke Ingels and his renowned studio, Bjarke Ingels Group (BIG). With a focus on sustainability, most of the buildings will feature eco-friendly materials like wood. The city will run on hydrogen fuel cells and solar power, aiming to reduce its environmental impact. Initially, Woven City is expected to attract around 2,000 residents, mainly engineers, researchers, and technologists, who will be actively engaged in the city’s ongoing development and testing.

A Vision for the Future

For Toyota, Woven City is more than just a high-tech hub; it’s a prototype for what future cities could look like. The name “Woven City” embodies the concept of interlacing various forms of mobility and technology into the urban fabric, creating a harmonious balance between traditional city life and futuristic innovation. Toyota envisions this city as a model for more sustainable, connected, and technologically advanced ways of living.

Toyota Chairman Akio Toyoda shared his excitement for the project at the CES technology conference in Las Vegas, saying, “This year, residents will begin moving in as we slowly bring Woven City into operation. We want to accelerate the pace at which new technologies can be tested and developed in Woven City.”

Looking to the Stars

In addition to its work on Woven City, Toyota is exploring the frontiers of space. At CES, Toyoda also revealed that Toyota is looking into the development of orbital rockets. Through its subsidiary, Woven by Toyota, the company is investing 7 billion yen ($44.4 million) in Interstellar Technologies, a Japanese private space company focused on launching satellites.

Toyoda emphasized the need for more than just one car company leading technological advancements, referencing Tesla and its CEO Elon Musk’s ventures into space with SpaceX. “We are also exploring the possibility of rockets because the future of mobility should not be limited to Earth or to one car company,” Toyoda remarked.

Interstellar Technologies, founded in 2013, has already completed seven launches of its small MOMO suborbital rockets, with the company’s sights set on developing larger rockets like the ZERO and DECA series to deliver spacecraft into orbit.

Toyota aims to leverage its expertise in mass production to help Interstellar Technologies create cost-effective rockets, potentially giving the company a competitive edge in the global launch market. Toyota’s new space ambitions position it alongside rivals like Mitsubishi, whose subsidiary Mitsubishi Heavy Industries has developed the H3 series rockets, designed to rival SpaceX’s Falcon 9 in terms of cost and capability.

MENA Tech Index Fell 4.6% In July, But Outperformed Global Tech

The MAGNiTT Tech Index fell 4.6% in July, marking its second consecutive monthly decline as technology stocks weakened across global markets. MGTI closed the month at 165.24, down 4.76% in 2026 and 24.88% from its January 2025 peak.

Despite the decline, the index remained 65.24% above its January 2023 inception level. Its lower correlation with global technology benchmarks also limited its exposure to the broader technology sell-off.

Saudi Technology Stocks Lead The Decline

Saudi technology companies accounted for much of July’s decline. Nice One fell 21.3%, Jahez dropped 17.2%, and Rasan declined 15.7%, while Talabat gave back part of its second-quarter recovery.

Only three of the index’s 15 constituents ended July higher. MGTI also underperformed regional equity markets, with Saudi Arabia falling 1.89% and Dubai declining 2.69% during the month.

MGTI Shows Lower Correlation With Global Tech

July marked a reversal in global technology stocks, with MSCI EM IT falling 12.81% and MSCI ACWI IT declining 5.64%. MGTI’s lower correlation with those benchmarks limited the decline, with a correlation of 0.36 to MSCI EM IT.

The index also has limited exposure to semiconductors and large-cap AI companies that have driven much of the recent global technology rally. Its performance therefore differs from the broader global technology cycle.

MGTI Remains Above Its 2023 Level

MGTI has gained 65.24% since its January 2023 inception despite its recent declines. The index entered August down 4.76% for 2026 and nearly 25% below its January 2025 peak.

The MAGNiTT Tech Index July 2026 Monthly Update includes constituent-level performance, regional and global benchmark comparisons, and data on correlation, beta and volatility.

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