• An artist's impression of air taxis over the Dubai skyline. All photos: Dubai Government Media Office
    An artist's impression of air taxis over the Dubai skyline. All photos: Dubai Government Media Office
  • The RTA, Joby Aviation and Skyports give attendees at the government summit a glimpse of what their flying taxis will look like. Antonie Robertson / The National
    The RTA, Joby Aviation and Skyports give attendees at the government summit a glimpse of what their flying taxis will look like. Antonie Robertson / The National
  • Designs for 'vertiports' — air taxi stations — have been approved by the Dubai government
    Designs for 'vertiports' — air taxi stations — have been approved by the Dubai government
  • Ahmed Bahrozyan, head of the Public Transport Agency at Dubai's Roads and Transport Authority. Antonie Robertson / The National
    Ahmed Bahrozyan, head of the Public Transport Agency at Dubai's Roads and Transport Authority. Antonie Robertson / The National
  • There would be four skyports in Dubai, including this one linked to a Dubai metro station. Antonie Robertson/The National
    There would be four skyports in Dubai, including this one linked to a Dubai metro station. Antonie Robertson/The National
  • Air taxis will begin flying in the emirate within three years
    Air taxis will begin flying in the emirate within three years
  • Many companies are already looking to make vertical take-off and landing vehicles a part of daily life
    Many companies are already looking to make vertical take-off and landing vehicles a part of daily life
  • Dubai is set to become the world's first city with a fully developed network of vertiports
    Dubai is set to become the world's first city with a fully developed network of vertiports
  • The emirate has been working with Skyports Infrastructure and Joby Aviation to develop the infrastructure
    The emirate has been working with Skyports Infrastructure and Joby Aviation to develop the infrastructure
  • Each aircraft will carry a pilot and up to four passengers, with a range of 241km and a top speed of 300kph
    Each aircraft will carry a pilot and up to four passengers, with a range of 241km and a top speed of 300kph

'Back on track': Dubai's flying taxi ambitions take off at World Government Summit


Kelsey Warner
  • English
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Follow the latest World Government Summit 2023 live coverage

A network of flying taxi stops that connects Dubai's major tourist spots, with a ride costing little more than the average Careem to hail — this is the ambition of the emirate's public transport chief.

While this is not the first time Dubai has set out its vision for the futuristic mode of travel, once pandemic-related delays and regulatory hurdles are cleared the dream of flying taxis could soon be realised, Ahmed Bahrozyan, chief executive of the Public Transport Agency, told The National.

We've been talking a lot to the main players, we feel that the project is back on track
Ahmed Bahrozyan,
Public Transport Agency, RTA

In 2017, German mobility company Volocopter tested a pilotless two-seater drone in Dubai. It flew 200 metres into the air for about four minutes before descending back down to Earth.

“The significance of [that flight] was Dubai wanted to announce itself as one of the governments that was very keen to introduce such an urban air-taxi service in the city,” Mr Bahrozyan said.

At the time, Dubai authorities believed it would take about five years for that vision to become a reality.

“Since then, we've been following the industry, we've been talking a lot to the main players, we feel that the project is back on track,” he said.

While no contracts have been signed, US mobility company Joby Aviation, which makes the aircraft, and UK company Skyports Infrastructure, which develops the take-off and landing spots, have a big presence at the Government Summit (WGS) in Dubai this week, alongside the Roads and Transport Authority.

Bringing all three together — manufacturer, infrastructure and regulator — “helps us move markets forward”, Duncan Walker, chief executive at Skyports, told The National, on the sidelines of the summit, adding that the company is “working on” a partnership with RTA.

A model on display at WGS shows an air-taxi station next to Dubai International Airport, the world's busiest. It has two parking decks below the take-off and landing field with spaces for electric vertical take-off and landing aircraft (eVTOLs) to recharge their batteries before taking off again.

Mr Bahrozyan said Downtown Dubai, the Marina and The Palm Jumeirah would be the first to build the infrastructure because of their population density and tourist attractions.

The Joby prototype is a silent, battery-operated aircraft with seats for a pilot and four passengers. It can fly for more than 240km before needing to be recharged. This would put Abu Dhabi and the Northern Emirates within range of Dubai, the transport chief pointed out.

The aircraft takes off and lands vertically — while its rotors tilt forward in flight — and can reach a maximum speed of 320kph. The company says it has completed more than 1,000 successful test flights.

“We've been promised flying taxis since the '60s,” Oliver Walker-Jones, head of communications at Joby, told The National. “The future really is in touching distance now.”

Joby is in the process of being certified by the US aviation oversight body, the Federal Aviation Administration, which has the most stringent safety standards in the world. Once it is passed, the UAE would grant a reciprocal certification.

“We feel that in the next three years, we will have aircraft that are certified internationally,” Mr Bahrozyan said.

Dubai is not the only city with flying ambitions. France opened a testing ground for electric air taxis at the end of last year, aiming to provide the world's such service in time for next year's Summer Olympics in Paris, Bloomberg reported at the time.

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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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Updated: February 14, 2023, 6:38 AM