US launches pilot programme to accelerate introduction of air taxis

US President Donald Trump's administration announced a new pilot programme on Friday to accelerate the roll-out of air taxis.

The Federal Aviation Administration (FAA) said it will create at least five projects for a public-private partnership to promote the safe use of electric vertical take-off and landing (eVTOL) aircraft.

“The next great technological revolution in aviation is here. The United States will lead the way, and doing so will cement America’s status as a global leader in transportation innovation,” Transportation Secretary Sean Duffy said in a statement.

Friday's announcement follows an executive order Mr Trump signed in June to create a pilot programme testing eVTOL aircraft for emergency-service vehicles, air taxis, cargo and defence logistics. Archer Aviation and Joby Aviation, two major players in the eVTOL, said they will participate in the programme.

Archer said it is exploring pathways to work with United Airlines and other carriers to go through trial operations of its Midnight Aircraft in the eVTOL Integration Pilot Programme (eIPP). The company said it expects the trials to demonstrate the safety and scalability of eVTOL operations.

“These early flights will help cement American leadership in advanced aviation and set the stage for scaled commercial operations in the US and beyond,” Archer chief executive Adam Goldstein said in a statement.

In a separate news release, Joby said its flight tests across five different continents have shown the aircraft's resilience. The tests have included several flights in Dubai.

Abu Dhabi tests its first air taxi

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Joby completed a test flight of its air taxi in Dubai in June, which Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, called a landmark moment in the UAE's vision to revolutionise public transport.

“We’ve spent more than 15 years building the aircraft technology and operational capabilities that are defining advanced aerial mobility, and we’re ready to bring our services to communities,” said Greg Powles, chief policy officer at Joby.

Shares in Archer Aviation and Joby Aviation were trading more than 2 per cent higher during Friday afternoon trading.

PROFILE OF SWVL

Started: April 2017

Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh

Based: Cairo, Egypt

Sector: transport

Size: 450 employees

Investment: approximately $80 million

Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates

Squid Game season two

Director: Hwang Dong-hyuk

Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

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

While you're here

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James Reinl: Biden’s Yemen U-turn gets thumbs-up overseas

Raghida Dergham: Will Biden's 'maximum diplomacy' with Iran work?

UAE currency

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

Expert input

If you had all the money in the world, what’s the one sneaker you would buy or create?

“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett

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“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox

“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite

“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy

“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal

Rating: 2/5