Dubai Taxi Company is to acquire National Taxi for Dh1.45 billion ($394.8 million), a move that will boost its strategy to widen its market reach across the emirates, including Abu Dhabi.
The 100 per cent takeover of National Taxi, which is to be funded through debt facilities, will add about 2,700 vehicles to DTC's fleet across Abu Dhabi, Dubai and Al Ain, DTC said on Wednesday in a filing to the Dubai Financial Market, where its shares trade.
The combined DTC and National Taxi fleet is expected to top 14,000 as of this month and would cater to an estimated 78 million trips a year across the UAE, DTC said.
The deal will also result in the integration of digital platforms, tying in DTC’s partnership with European mobility company Bolt, as well as its driverless taxi services. DTC and China's Baidu teamed up last month to bring more than 1,000 autonomous taxis to the roads of Dubai.
The acquisition is expected to be completed in the third quarter of this year, subject to regulatory approvals, including from Dubai's Roads and Transport Authority and Abu Dhabi's Integrated Transport Centre.
The deal is expected to boost DTC's net debt-Ebitda ratio by about 2.5 times and be earnings accretive from the first full year of ownership, DTC group chief executive Mansoor Alfalasi said. DTC's earnings before interest, taxes, depreciation and amortisation declined by 22 per cent in the first quarter of this year, affected by the Iran war, the company said this month.
Profit for the three-month period ending in March dropped by about 39 per cent to Dh50.7 million, while revenue slid by more than 6 per cent to Dh551 million. But before the war, during January and February, profit, revenue and Ebitda shot up 25 per cent, 10 per cent and 17 per cent, respectively.
For the full-year 2025, DTC's net profit grew about 7.5 per cent year-on-year, as revenue jumped more than 12 per cent to Dh2.47 billion.
"This acquisition represents an important strategic milestone for DTC, strengthening our leadership position in Dubai, while establishing a meaningful presence in Abu Dhabi," DTC group chairman Abdul Muhsen Kalbat said. "The UAE's fundamental strengths in attracting investment, talent and visitors continue to underpin sustained demand for mobility services. This acquisition is a direct expression of that conviction."
Interest in acquiring National Taxi, established in Abu Dhabi in 2000 with an initial fleet of 50 cars, came from investors across North America, Europe, the Middle East and Central Asia, managing director Toufic Mitri said.
"Ultimately, DTC submitted the most compelling proposal and we are confident that DTC will guide National Taxi through its next phase of development,” he added.
The UAE has been enhancing its transport services, aligned with the growth of its economy and population. Companies such as DTC have expanded their fleets, as well as using driverless taxis to add more options to public transport and contribute to a green push.
Dubai’s population growth has also been reflected in the number of people using public transport, with 802 million people travelling in taxis and other services last year, a report from the RTA showed this year.
Latest figures showed an average of 2.2 million people taking some form of public transport every day last year, the RTA said.
“The acquisition of National Taxi is a strong strategic and operational fit for DTC ... aligned with delivering sustainable growth while maintaining an attractive dividend profile for our shareholders and a healthy leverage profile," Mr Alfalasi said.
Shares of DTC settled about 0.1 per cent lower to Dh2.01 at the DFM on Wednesday.
