Dubai Taxi Company drives into Abu Dhabi with Dh1.45bn National Taxi deal
Combined fleet expected to exceed 14,000 vehicles across UAE
DUBAI – The Dubai Taxi Company PJSC (DTC) has announced its first major acquisition since its public listing, signing a Sales and Purchase Agreement to acquire 100 percent of National Taxi LLC in a transaction valued at Dh1.45 billion.
The deal marks a significant expansion for DTC as it moves to strengthen its dominance in Dubai while establishing a sizeable presence in Abu Dhabi’s transport sector.
The acquisition, which remains subject to regulatory approvals and customary closing conditions, is expected to be completed in early Q3 2026. The transaction will be financed through new bank debt facilities, with DTC confirming that no new equity issuance will take place, ensuring no dilution for existing shareholders.
National Taxi
National Taxi is one of the UAE’s established taxi operators, with operations spanning Dubai, Abu Dhabi and Al Ain. The company currently operates approximately 2,500 licensed taxi plates and a fleet exceeding 2,700 vehicles. DTC said the acquisition aligns with its long-term strategy of building a larger multi-emirate mobility platform capable of supporting growing demand for transport services across the UAE.
Following completion of the transaction, DTC’s market share in Dubai is expected to rise from 47 percent to nearly 59 percent. The acquisition will also provide the company with an immediate foothold in Abu Dhabi, where it is projected to secure around 12 percent market share.
National Taxi generated net revenue of Dh774 million during the year ended July 31, 2025, alongside EBITDA of Dh183 million and net profit of Dh101 million. The company completed 25.4 million trips over the same period while maintaining a fleet utilisation rate of 98 per cent.
DTC said the operational structure of National Taxi closely mirrors its own business model, making integration more efficient. Rather than fully absorbing the business, DTC plans to retain the National Taxi brand after the acquisition while consolidating key back-office operations such as procurement, finance and maintenance management. Customer-facing operations will continue under the established National Taxi identity.
The combined business is expected to operate a pro forma fleet exceeding 14,000 vehicles by May 2026 and serve approximately 78 million trips annually across the UAE. The enlarged operation is also expected to benefit from integration with DTC’s existing digital ecosystem and its strategic partnership with ride-hailing platform Bolt.
Commenting on the transaction, DTC Group Chairman Abdul Muhsen Ibrahim Kalbat described the acquisition as a major milestone in the company’s expansion strategy. He said the deal would reinforce DTC’s leadership in Dubai while opening up new opportunities in Abu Dhabi’s transport market.
Kalbat noted that National Taxi’s established operational model and financial profile make it a strong strategic fit for DTC’s ambitions. He added that the company remains confident in Dubai’s economic outlook and the UAE’s broader growth trajectory, which continues to support long-term demand for mobility services.
He also said the acquisition reflects DTC’s commitment to building a national mobility platform capable of supporting the country’s rapidly evolving urban transport sector.
Financial impact
DTC expects the acquisition to become earnings accretive from the first full year of ownership. The company also anticipates additional gains through operational synergies, procurement efficiencies and centralised maintenance systems.
According to the company, identified synergies are expected to account for approximately 5 per cent of National Taxi’s net revenue. These efficiencies are projected to come from fleet procurement savings, integration of maintenance operations and consolidation of administrative functions. Additional upside may also be generated through optimised fleet allocation and revised driver commission structures.
DTC Group CEO Mansoor Rahma Alfalasi said the transaction was structured carefully to support growth while preserving balance sheet stability. He stated that the acquisition reinforces the company’s strategic focus on disciplined capital allocation and sustainable shareholder returns.
Alfalasi added that DTC intends to maintain its attractive dividend profile while continuing to strengthen its financial position over the long term. At completion, the company expects Net Debt to EBITDA to stand at approximately 2.5x, with progressive deleveraging planned over time through strong operational cash flows.
The Abu Dhabi market is viewed as particularly attractive due to its fragmented competitive landscape and limited issuance of taxi licences. Industry regulations in both Dubai and Abu Dhabi tightly control the allocation of taxi plates, creating significant barriers to entry and increasing the strategic value of existing licences.
National Taxi currently holds 1,734 licensed plates in Dubai and around 800 in Abu Dhabi and Al Ain, making it one of the few operators with a sizeable regulated presence across both emirates.
DTC said the acquisition supports its broader five-year growth strategy and positions the company to capture future opportunities arising from population growth, rising tourism numbers and ongoing infrastructure investments throughout the UAE.
Strategic expansion
The taxi and ride-hailing sector in both Dubai and Abu Dhabi is expected to experience continued growth in the coming years, driven by sustained visitor inflows and economic expansion. DTC believes the enlarged platform will allow it to compete more effectively across the country while improving operational efficiencies at scale.
The company also highlighted the increasing role of technology within the transport sector, noting that National Taxi has spent years modernising its fleet and operational systems. Founded in 2000, National Taxi has grown steadily over more than two decades and has received several industry accolades while expanding its presence across key UAE cities.
Toufic Mitri, Managing Director at National Taxi, said the company had undergone a competitive process to evaluate investor interest before selecting DTC’s proposal. He revealed that Emirates NBD Capital Limited and Lazard Gulf Limited were appointed last year to oversee the process, which attracted interest from investors across North America, Europe, the Middle East and Central Asia.
Mitri stated that DTC ultimately submitted the strongest proposal and expressed confidence in the company’s ability to guide National Taxi through its next stage of development.
The acquisition is expected to further strengthen DTC’s position as one of the UAE’s largest mobility operators, expanding beyond its traditional Dubai base and establishing a wider national presence.
Deal structure
Under the terms of the agreement, DTC will acquire 100 percent of the share capital of National Taxi from its existing shareholders for a total enterprise value of Dh1.45 billion. The final consideration remains subject to adjustment in line with the terms outlined in the Sales and Purchase Agreement.
The transaction still requires approvals from key regulators, including Dubai’s Roads and Transport Authority and Abu Dhabi’s Integrated Transport Centre. DTC said it will continue engaging with regulators, investors and employees throughout the process and provide material updates when appropriate.
DTC has appointed Alvarez & Marsal Middle East Corporate Finance as its exclusive financial adviser and DLA Piper as legal adviser for the transaction. National Taxi has retained Emirates NBD Capital Limited and Lazard Gulf Limited as financial advisers, while White & Case LLP is acting as legal adviser.