Drones could be set to transform the delivery industry in Dubai, according to experts. Dubai Media Office
Drones could be set to transform the delivery industry in Dubai, according to experts. Dubai Media Office
Drones could be set to transform the delivery industry in Dubai, according to experts. Dubai Media Office
Drones could be set to transform the delivery industry in Dubai, according to experts. Dubai Media Office

Experts say drones can slash delivery costs as Dubai plans revealed


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Drone deliveries that are cheaper and 20 times more efficient than land vehicles could complement an air taxi service poised for Dubai in 2026, experts have said.

Innovators discussed the merits of transforming deliveries from road to air at the World Governments Summit in Dubai, as an effective method of reducing city traffic and cutting pollution.

What's happened over the last 10 years has been a real evolution in drone systems and how you integrate with the retailer
Adam Grosser,
venture capitalist

It also emerged that Dubai is due to launch production of components of the new Joby Aviation air taxis, as the California-based aerospace company looks to begin running UAE services.

Ahmed Bahrozyan, chief executive of the Public Transport Agency of the Dubai Roads and Transport Authority (RTA), said the first six air taxis destined for UAE skies will be US-built, but the UAE could take up future manufacturing of the vehicles.

“The contractual agreement between us and Joby Aviation allows us and them to explore potentially moving parts of the manufacturing process here into the UAE,” Mr Bahrozyan told the Arabian Radio Network.

“The range of the vehicle allows it to potentially do intercity trips as well, so maybe in the future we can potentially also make trips to other emirates.

“Eventually the aim is that Joby has a strategy to move towards autonomy, so there's a vision to have this become an autonomous taxi in the future.”

On the sidelines of the World Government Summit in Dubai, it was announced vertiport infrastructure for the Advanced Air Mobility (AAM) industry would be developed by Skyports.

A partnership between the RTA, Skyports and Joby Aviation will see air taxis take to the skies in 2026.

The initial network will include four vertiports located by Dubai International Airport (DXB), Palm Jumeirah, Dubai Downtown and Dubai Marina.

Rapid journey times

A typical journey from DXB to Palm Jumeirah is expected to take 10 minutes by air taxi compared with 45 minutes by car.

JoeBen Bevirt, American entrepreneur and founder and chief executive of Joby Aviation, said air taxis have been designed to cut noise pollution and become widely accessible.

“We looked at both the absolute noise level, but also the quality of the sound,” he said.

“We wanted something that didn't have the impulsive nature of a helicopter, so we've done a lot of work on the design of the propellers.

“It is not just a product, but something that will be widely accessible – that was part of the thesis in designing an air taxi that is 20 times as productive as the car on the ground.”

The Joby Aviation aircraft is expected to cut the journey from Dubai Airport to Palm Jumeirah from 45 minutes to 10 minutes. Dubai Media Office
The Joby Aviation aircraft is expected to cut the journey from Dubai Airport to Palm Jumeirah from 45 minutes to 10 minutes. Dubai Media Office

Aviation experts said drone deliveries had transformed access to medical supplies in hard-to-reach areas of Africa, with a similar model holding the potential to be implemented in the UAE.

In Rwanda, ZipLine drone operators slashed delivery times of critical supplies to medical facilities from eight hours by road in the wet season, to just 30 minutes.

Adam Grosser, chairman of UP Partners, an early-stage venture capital fund, said the success was an example of how day-to-day deliveries could also be revolutionised.

“What's happened over the last 10 years has been a real evolution in drone systems and how you integrate with the retailer,” Mr Grosser said in the Soaring Innovations forum at WGS.

“Consumer acceptance is public acceptance, this is a big part of making this successful."

Mr Grosser said common concerns among the public are that drones will fly close to houses, invade privacy and cause noise and disruption.

"But I can tell you now from having done hundreds of thousands of deliveries in a variety of locations that transit speeds are between 70-90mph, and that the convenience outweighs most people's concerns," he said.

“If you think about embedded costs of (road) delivery, you have the depreciation of the vehicle, insurance, fuel and a human being – so it costs around $12 or $13 if you're really good.

“Drones are already below that (cost) and will trend dramatically lower as the systems scale.”

What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

The specs

Engine: 6.2-litre V8

Transmission: seven-speed auto

Power: 420 bhp

Torque: 624Nm

Price: from Dh293,200

On sale: now

If you go...

Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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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

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

What drives subscription retailing?

Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.

The low down

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Director: Namrata Singh Gujral

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The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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  • 7 - million dollars, the film's budget 
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Company profile: buybackbazaar.com

Name: buybackbazaar.com

Started: January 2018

Founder(s): Pishu Ganglani and Ricky Husaini

Based: Dubai

Sector: FinTech, micro finance

Initial investment: $1 million

BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

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The Bloomberg Billionaire Index in full

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2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion

Updated: February 12, 2024, 3:11 PM