Dubai Taxi Company Acquires National Taxi for AED 1.45 Billion, Strengthening Market Leadership Across UAE
Dubai Taxi Company (DTC) has made a significant move in the transportation sector by acquiring National Taxi LLC for AED 1.45 billion (approximately $394.8 million). This acquisition, finalized on May 13, is poised to transform ground transport not only in Dubai but throughout the UAE. This strategic decision marks DTC’s latest major acquisition since its listing on the Dubai Financial Market, fundamentally reshaping the landscape of taxi and ride-hailing services across the region.
The Scale of National Taxi
Founded in 2000, National Taxi has established itself as one of the largest private taxi operators in the UAE. The company boasts over 2,500 registered taxi plates and maintains a fleet of more than 2,000 active vehicles in Dubai and Abu Dhabi. In the fiscal year ending July 31, 2025, National Taxi reported revenues of AED 774 million and an EBITDA of AED 183 million, with a net profit of AED 101 million. The company successfully completed 25.4 million rides, achieving a remarkable vehicle utilization rate of 98%, one of the highest in the region.
DTC plans to finance the acquisition entirely through fresh bank debt, avoiding any dilution of shares for existing shareholders. However, the Roads and Transport Authority in Dubai and the Integrated Transport Centre in Abu Dhabi have yet to approve the acquisition, which is expected to finalize in early Q3 2026.
Impacts of the Deal
The acquisition will have immediate and measurable strategic impacts. DTC’s market share in Dubai is projected to increase from 47% to approximately 59%, establishing a clear leadership position in the market. Additionally, DTC is anticipated to capture around 12% of the Abu Dhabi market share, where it currently does not operate. The combined fleet will exceed 14,000 vehicles, facilitating approximately 78 million trips annually across the UAE.
Abdul Muhsen Ibrahim Kalbat, Chairman of DTC Group, stated that this acquisition represents a crucial strategic milestone for the company. He emphasized that it not only strengthens DTC’s leadership in Dubai but also establishes a significant presence in Abu Dhabi. Kalbat noted that National Taxi is a well-established operator with a robust financial profile, allowing DTC to expand its platform and position itself for long-term growth.
Following the acquisition, DTC intends to retain the National Taxi brand while integrating central back-office functions such as finance, procurement, and maintenance management. This approach aims to ensure continuity for customers while achieving cost savings through operational consolidation, a common strategy in mobility sector mergers.
Broader Expansion Initiatives
The acquisition of National Taxi is part of a broader growth strategy for Dubai Taxi Company. Concurrently, DTC has announced the addition of 600 new taxi plates effective July 2026, an expansion of its electric vehicle fleet, and strengthened partnerships with e-hailing services like Bolt and Zed. The company has also initiated driverless vehicle services. These initiatives collectively indicate that DTC is actively pursuing growth on multiple fronts.
In 2025, taxis and limousines in the Dubai market completed over 53 million trips. With the acquisition of National Taxi, the combined operations are expected to reach 78 million annual trips, representing a significant share of the UAE’s total regulated ground transport demand. This position is further solidified by the tightly regulated issuance of taxi plates in both emirates, creating structural barriers for new entrants.
Strategic Growth Plan Amid Market Challenges
DTC’s performance leading up to this acquisition has not been uniformly strong. While January and February 2026 saw a robust 10% revenue growth, March experienced a downturn due to disruptions caused by geopolitical tensions that began on February 28. The conflict severely impacted airport activity, resulting in a decline in tourist arrivals and mobility demand in Dubai. Taxi services associated with airports were particularly affected, as major airlines like Emirates and flydubai suspended operations during the initial weeks of the conflict.
The timing of the acquisition announcement suggests that DTC is strategically positioning itself to capitalize on a recovering market. With the full reopening of UAE airspace and regional mobility in May, acquiring a well-capitalized operator with high utilization rates allows DTC to benefit from the anticipated resurgence in demand without the need to establish a presence in Abu Dhabi from scratch.
DTC views the Abu Dhabi market as structurally attractive due to its fragmented competitive landscape and high barriers to entry for new companies. This acquisition provides DTC with a platform for further geographic expansion and a vehicle for sustainable growth over time.
The acquisition of National Taxi by Dubai Taxi Company is not merely a fleet transaction; it signifies DTC’s vision for the future as a dominant regulated mobility platform across the UAE.
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Published on 2026-05-14 17:37:00 • By the Editorial Desk
