Archer Aviation's Midnight aircraft. Photo: Archer Aviation
Archer Aviation's Midnight aircraft. Photo: Archer Aviation
Archer Aviation's Midnight aircraft. Photo: Archer Aviation
Archer Aviation's Midnight aircraft. Photo: Archer Aviation

Abu Dhabi's flying taxis are closer to taking off this year


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A fleet of flying taxis operating in Abu Dhabi became more of a likelihood following confirmation of an agreement between the emirate's aviation authority and the firm behind the machines.

As The National reported last month, Archer Aviation was working towards launching a fleet of flying taxis before the end of the year, viewing the Gulf as the perfect launch pad to demonstrate its vehicles to the rest of the world.

Abu Dhabi Aviation confirmed on Thursday morning that an agreement had been made to deploy the first fleet of Archer Aviation's Midnight electric vertical take-off and landing (eVTOL) aircraft this year.

"As a leading force in the aviation industry across the region and the largest helicopter operator in the Middle East, Abu Dhabi Aviation has the expertise to develop a scalable urban air mobility service," said Nader Al Hammadi, chairman of Abu Dhabi Aviation. "We are excited to lead the way in launching the region’s electric air taxi service, starting right here in Abu Dhabi.”

Abu Dhabi Aviation will fund the deployment of the Midnight flying taxis, making it the first operator of electric air taxis in the region, according to a statement released on Thursday. The Midnight is a piloted, four-passenger aircraft designed to perform back-to-back flights with minimal charge time between flights.

Archer Aviation's goal is to "transform urban travel, replacing 60–90-minute commutes by car with an estimated 10 to 20-minute electric air taxi flights that are safe, sustainable, and low noise". A senior figure said the collaboration with Abu Dhabi is key to their global plans, referring to it as "Launch Edition". If the project is successfully adopted in the UAE, the company expects to then roll it out globally.

“The unveiling of Launch Edition marks the beginning of the next chapter for Archer," said Adam Goldstein, chief executive and founder of Archer. "This is how we’ll bring Midnight from the manufacturing line to our first customers – and it’s a playbook we’ll run repeatedly as we scale our operations globally. Thank you to Abu Dhabi Aviation for being our first Launch Edition customer. We have a big year ahead."

Up in the air

Early operations are expected to be from Abu Dhabi airport to the city centre, which is about 30 minutes by car but six or seven minutes in a Midnight eVTOL travelling up to 260 kph, The National reported last month.

Mr Goldstein puts the pricing around the Uber Black range. So passengers could pay about Dh350 ($95) for a flight from Zayed International Airport to Emirates Palace, the luxury hotel on the Corniche.

“These are not just toys for the rich. These are vehicles that are accessible and these are vehicles that are much quieter,” he told The National previously. It is expected there will just be a handful in the air at any time during the early days of the operation.

“I think the visions of highways in the sky will come one day, but those might be a few years down the road,” Mr Goldstein said.

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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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Director: Manuel Calvo
Stars: Yassir Al Saggaf and Fatima Al Banawi
Rating: 2/5
 

Visa changes give families fresh hope

Foreign workers can sponsor family members based solely on their income

Male residents employed in the UAE can sponsor immediate family members, such as wife and children, subject to conditions that include a minimum salary of Dh 4,000 or Dh 3,000 plus accommodation.

Attested original marriage certificate, birth certificate of the child, ejari or rental contract, labour contract, salary certificate must be submitted to the government authorised typing centre to complete the sponsorship process

In Abu Dhabi, a woman can sponsor her husband and children if she holds a residence permit stating she is an engineer, teacher, doctor, nurse or any profession related to the medical sector and her monthly salary is at least Dh 10,000 or Dh 8,000 plus accommodation.

In Dubai, if a woman is not employed in the above categories she can get approval to sponsor her family if her monthly salary is more than Dh 10,000 and with a special permission from the Department of Naturalization and Residency Dubai.

To sponsor parents, a worker should earn Dh20,000 or Dh19,000 a month, plus a two-bedroom accommodation

 

 

 

Updated: March 27, 2025, 12:46 PM