Rob Lloyd, the chief executive of Hyperloop Technologies, has said that he hopes the UAE will be one of the early adopters to embrace its ultra-fast transport system.
Hyperloop is a tube-based transportation system currently under development that can move containers or up to 40 people in a single capsule at speeds of up to 1,100 kilometres per hour, which could potentially cut journey times between Abu Dhabi and Dubai to 15 minutes.
Although he declined to discuss conversations with individual customers, Mr Lloyd said on the sidelines of Middle East Rail that he “would expect the history of innovation in this region could make Dubai and the UAE one of the first places where the Hyperloop comes into production”.
“Our goal in the next few years is to select the top three projects in the world where we can build the Hyperloop, where we can demonstrate its capabilities and we will be working with innovative companies, regulators and governments to try to make that a reality,” Mr Lloyd said. “Our dream would be that it happens here and we will see if we can make that dream come true.”
Mr Lloyd described Hyperloop as “the new broadband for transportation”. It can be used to shuttle people across cities – from one airport to another, say – within minutes. It could also be deployed at existing ports to quickly shift containers enclosed within tubes from shoreline to a “dry port” for customs clearance 80 kilometres inland, freeing up shoreline real estate for more valuable uses.
“None of what I have described requires any new science. It can all be built today,” argued Mr Lloyd.
US-based Hyperloop Technologies has already raised $100 million in venture funding, which it has used to acquire a 50-acre site in north Las Vegas, where a 3km-long test facility is under construction using 11.5ft-diameter steel tubes. Mr Lloyd said it has received interest from around the world, but would focus on an initial three projects – all of which would be freight-based. He expects contracts for the first of these to be agreed either this year or next, with civil and construction work starting in 2017 for delivery by 2020-21.
“Typically, it takes more than a decade to do high-speed rail. This can be done much more quickly,” he said.
The senior executive vice president of Siemens’ Middle East mobility division, Joerg Scheifler, said that more forms of public transport are needed given the massive predicted rise in urbanisation and travel both within and between cities. He said that transport use is forecast to grow from 22.8 trillion person kilometres in 2010 to 49 trillion by 2050, with the biggest growth expected in individual car transportation. He added that Dubai already has considerably higher commute times than average at 105 minutes per person per day, compared with just 45 minutes in London and 36 minutes in Singapore.
“Something needs to be done. [We need to] move away from individual transport to public transport. Make public transport as attractive as possible.”
mfahy@thenational.ae
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The years Ramadan fell in May
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
