Germany’s air taxi developer Lilium sees “tremendous opportunities” in the Middle East, particularly the GCC, where the development of megacities calls for solutions to minimise traffic and slash carbon emissions.
Munich-based Lilium is looking at potential opportunities in the region including the UAE, Kuwait, Bahrain and Oman, for its electric Vertical Take-Off and Landing (eVTOL) vehicles, Sebastien Borel, senior vice president of commercial at Lilium, told The National.
"We are talking to many players in region. Whether or not it lands, it depends on them and us from a production perspective committing to the Middle East," he said.
"Europe, the US and Middle East will be our strongest regions, so we will have to balance the offering in each of these regions in a timely manner for [production] slots."
This comes after Saudia signed an initial agreement with Lilium in October to buy 100 of its aircraft to serve its domestic network.
With this deal, Saudia became the first airline in the Middle East and North Africa to introduce all-electric aircraft to its network, according to Lilium.
Saudia will use the aircraft for point-to-point connections as well as feeder connections to its hubs for business-class passengers.
"The Middle East offers tremendous opportunities, with its megacities, urban development, megaprojects, so they can start planning with eVTOL in mind," Mr Borel said.
"This part of the world is one of the most attractive regions because it's new and there's lot of demand to avoid traffic and cut carbon emissions."
GCC countries such as the Emirates have "tons of opportunities" for eVTOLs as the premium fares will initially be affordable mainly for the "higher middle-class", he said.
Lilium is seeking to replace road trips and short-haul journeys by aircraft and helicopters with its zero-operations-emissions jets.
Amid a push for economic diversification away from oil, GCC countries are talking to aircraft manufacturers about knowledge sharing, hiring locals and setting up domestic manufacturing plants.
Lilium is considering these needs as part of its discussions with potential customers in the region, Mr Borel said.
"We have a lot of those requests in the region to bring knowledge sharing, technical know-how, training and production. We are very interested in this," he said.
"We are having those discussion and we will see if it lands somewhere. We’re contemplating having such activities with key countries," Mr Borel said, adding that it is a "great opportunity" for sustainable operations and job creation.
In the first phase of commercial operations, Lilium is targeting the premium general and business aviation markets. This includes charter operators, fractional ownership and high-net-worth individuals.
In the second phase, Lilium plans to roll out the six-passenger shuttle configuration to address demand for short regional services.
Through sales in Saudi Arabia, Brazil, Florida, southern France, Andalusia, along with Norway, Benelux, Germany and northern Italy, Lilium is targeting prime locations with high demand for premium air mobility, and where sustainability is a main priority.
Asked how Lilium is tackling challenges facing the industry such as certification and raising funding, Mr Borel said that the company seeks the "right partners" for partnership agreements who can help with capital, landing sites (so-called verti-ports), regulatory approvals and real estate.
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The specs: Rolls-Royce Cullinan
Price, base: Dh1 million (estimate)
Engine: 6.75-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 563hp @ 5,000rpm
Torque: 850Nm @ 1,600rpm
Fuel economy, combined: 15L / 100km
The specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T
Price, base: Dh840,000; Dh120,000
Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo
Transmission: Eight-speed automatic; seven-speed automatic
Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm
Torque: 695Nm @ 2,000rpm; 760Nm @ 3,000rpm
Fuel economy, combined: 9.9L / 100km; 11.6L / 100km
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Champions League quarter-final, first leg
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