Testing of driverless taxis will begin on Dubai roads later this year to prepare the autonomous vehicles for the unique driving style of the city, officials said.
The 10 automated taxis supplied by US firm Cruise will begin to carry passengers in late 2023.
The Dubai Roads and Transport Authority will complete rigorous testing before that launch to ensure the taxis are prepared for the hectic driving styles of some motorists in the UAE.
“As we get closer to launch we will do publicity so people recognise these cars,” said Ahmed Bahrozyan, chief executive of the Public Transport Agency at the RTA.
Automated taxis will not require other drivers to change their habits at all, or for us to invest in any new infrastructure
Ahmed Bahrozyan of Dubai Roads and Transport Authority
“They will not require other drivers to change their habits at all, or for us to invest in any new infrastructure.
“A lot of testing will be done and a testing programme on the roads will begin with Cruise later this year.
“The technology must match the unique driving style of each city.”
Fitted with laser detection and ranging systems to detect distance from objects and with 100 sensors integrated into each vehicle, the taxis will be able to respond safely to other drivers.
Inside, seats face each other and taxis can seat up to six people, with ample room for luggage.
It is hoped wider adoption of autonomous vehicles will greatly reduce road accidents.
By 2030, it is expected that 4,000 driverless taxis will be in operation in Dubai.
“This is a big opportunity to reduce accidents and make mobility more affordable as the savings made from not having drivers can be passed on to customers,” said Mr Bahrozyan.
“They will increase road safety, as 90 per cent of accidents are caused by human error with people falling asleep at the wheel or on their phones.”
Regulations in Dubai will change to accommodate driverless cars, to allow manufacturers to sell their own autonomous vehicles to the public in the future, Mr Bahrozyan said.
A similar trial has already taken place in Abu Dhabi.
A fleet of ride-sharing vehicles as part of the TXAI project was made available for members of the public to try out on Yas Island in December.
The topic of driverless cars was a key focus of the World Government Summit during a session on policies and innovation in the future of movement.
As technology develops, so will the regulations required to create a safe and legal environment for all road users.
Jeff Bleich, chief legal officer of Cruise, the majority-owned autonomous vehicle subsidiary of General Motors, said Dubai would be the firm’s first international partner to innovate a new cities system and develop the future of smart mobility.
“This kind of development and that of smart devices will be essential for work systems around the world, all governments will have to involve this positive transformation,” he said.
“We at Cruise’s Origin AV have been working on solutions for some challenges such as the lack of a visible steering wheel or brakes, which does not currently meet RTA’s required standard in vehicles.”
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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.
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Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5