Dubai Taxi Company Strengthens Market Position with $394.8 Million Acquisition of National Taxi

Dubai Taxi Company (DTC), a prominent provider of mobility solutions in the UAE, has announced a significant acquisition. On Wednesday, DTC revealed it has entered into a Sales and Purchase Agreement (SPA) to acquire 100% of National Taxi’s share capital for an enterprise value of AED 1.45 billion ($394.83 million). This acquisition is set to enhance DTC’s operational footprint across Dubai, Abu Dhabi, and Al Ain.

Funding and Financial Structure

The acquisition will be financed through new bank debt facilities. The final consideration will be subject to adjustments as per the terms outlined in the SPA. This strategic move aligns with DTC’s growth objectives and is expected to bolster its market presence significantly.

National Taxi: A Respected Operator

Founded in 2000, National Taxi operates approximately 2,500 licensed plates and maintains a fleet of over 2,700 vehicles across its service areas. In the fiscal year ending July 31, 2025, National Taxi completed 25.4 million trips, achieving a fleet utilization rate of 98%. The company reported net revenues of AED 774 million and an EBITDA of AED 183 million. Its operational model is compatible with DTC’s existing framework, facilitating a smooth integration process.

Strategic Growth and Market Expansion

The acquisition represents a crucial step in DTC’s five-year growth strategy, aimed at expanding its geographic reach within the UAE. Upon completion, DTC’s market share in Dubai is projected to increase from 47% to approximately 59%. Additionally, the acquisition will establish a notable presence in Abu Dhabi, where DTC aims to capture a 12% market share, unlocking further growth opportunities.

DTC plans to retain the National Taxi brand post-acquisition while implementing a partial integration strategy. This approach will allow DTC to maintain customer-facing operations while consolidating central functions such as finance and procurement.

Confidence in UAE’s Mobility Sector

The signing of the SPA underscores DTC’s confidence in the UAE’s economic fundamentals, which continue to drive demand for mobility services. The Board of Directors and management team express strong belief in Dubai’s resilience and the long-term viability of its economic model.

Abdul Muhsen Ibrahim Kalbat, DTC’s Group Chairman, emphasized the strategic importance of this acquisition, stating that it strengthens DTC’s leadership in Dubai and establishes a significant presence in Abu Dhabi. He noted that National Taxi’s strong financial profile and operational quality align well with DTC’s growth ambitions.

Mansoor Rahma Alfalasi, DTC’s Group CEO, highlighted the operational fit of National Taxi within DTC’s framework. He indicated that the transaction is expected to be earnings accretive from the first full year of ownership, with additional benefits anticipated from procurement optimization and centralized maintenance.

Insights from National Taxi’s Leadership

Toufic Mitri, Managing Director of National Taxi, remarked on the company’s established reputation in Dubai and Abu Dhabi over the past 26 years. He noted that National Taxi has consistently experienced growth and innovation, attracting interest from investors globally. Ultimately, DTC’s proposal was deemed the most compelling, positioning the company for its next phase of development.

National Taxi holds a unique position in the market, with a licensed presence in both Dubai and Abu Dhabi, holding 1,734 plates in Dubai and 800 in Abu Dhabi and Al Ain. The regulated nature of taxi plate issuance in both emirates creates significant barriers to entry, enhancing the value of National Taxi’s assets.

Future Fleet and Market Dynamics

The combined fleet of DTC and National Taxi is expected to exceed 14,000 vehicles by May 2026, facilitating an estimated 78 million annual trips across the UAE. This merger will allow for operational synergies in fleet procurement, maintenance, driver management, and digital platform integration, particularly through DTC’s strategic partnership with Bolt.

The taxi and ride-hailing market in Dubai and Abu Dhabi is poised for continued growth, driven by population expansion, increased visitor inflows, and ongoing infrastructure investments. The Abu Dhabi market, characterized by its fragmented competitive landscape and high barriers to entry, presents DTC with a robust platform for long-term growth and potential geographic expansion.

Source: www.zawya.com

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Published on 2026-05-13 18:47:00 • By the Editorial Desk