The region's first electric air taxi test flight has been carried out in Dubai ahead of a planned launch of commercial operations next year.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, praised the milestone trial as a “major step forward” in the emirate's long-term vision to revolutionise public transport.
Monday's test journey was carried out by California-based Joby Aviation in partnership with Dubai's Roads and Transport Authority.
“The test flight marks a major step towards launching full operations next year,” Sheikh Hamdan wrote on social media platform X.
“The all-electric aerial taxi represents a new leap in eco-friendly urban mobility – reducing travel times, enhancing quality of life and advancing sustainable development.
“This pioneering initiative is part of the UAE’s broader vision to lead the world in innovation and the deployment of advanced technologies. Our nation's skies have opened to new possibilities, and the best is yet to come.”
Grand ambitions take flight
Joby Aviation has previously told The National it aims to deliver a “widely accessible” service via a smartphone app and its long-term goal is to offer pricing “competitive” with ground-based alternatives.
“We haven’t announced specific pricing, but our long-term goal is to offer pricing that is competitive to the cost of similar ground-based alternatives,” Anthony Khoury, UAE general manager at the California-based company.
“Joby's unique technology means we can provide services that are not only more accessible than helicopter travel, but are also safer, quieter and have zero operating emissions. Over time we expect this to mean we can deliver a service that is widely accessible.”
The UAE is pressing ahead with ambitious transport plans, including drones, driverless taxis and air taxis.
Test flights for self-flying air taxis were also held in the UAE capital last month, in what was hailed by Abu Dhabi Media Office as a “pivotal step towards integrating urban air mobility into everyday life”.
The flights were organised by the Smart and Autonomous Systems Council and ADIO, in collaboration with Chinese drone manufacturer EHang and FinTech group Multi Level Group.
In March, US air taxi company Archer Aviation said it 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 at the time that an agreement was made to introduce the first fleet of Archer's Midnight electric vertical take-off and landing aircraft this year.
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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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