Friday, December 1, 2023

Dubai Taxi to Launch IPO as Sheikh Mohammed Issues New Law

Dubai Taxi is gearing up for its initial public offering (IPO) as the Government of Dubai transforms it into a public joint stock company. The move, approved by Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, is part of a broader initiative to list 10 entities on the Dubai Financial Market (DFM) post-pandemic, with the goal of boosting market capitalization to Dh3 trillion.

Entities like Dewa, Salik, Tecom Group, and Empower have already successfully gone public, witnessing high demand from investors. However, details about the timing and volume of Dubai Taxi’s shares on the Dubai bourse remain undisclosed. It’s anticipated that more government-backed entities will follow suit, aligning with the broader plan to increase liquidity.

In further developments, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, gave the green light to the Council’s Resolution No. (93) of 2023 on Dubai Taxi Company’s Articles of Association. This includes the appointments of Abdul Mohsin Ibrahim Younis as chairman and Ahmed Ali Al Kaabi as vice chairman. Other board members include Shehab Hamad Abu Shehab, Youssef Ahmed bin Ghalaita, Dr. Hanan Sulaiman Al Suwaidi, Abdulla Mohammed bin Damithan, and Issa Abdullah bin Natouf.

The law grants Dubai Taxi financial and administrative independence to pursue its activities for a duration of 99 years, automatically renewable. Besides traditional taxi services, Dubai Taxi will expand into self-driving and flying taxi services, vehicle leasing with or without drivers, bike leasing for cargo transportation, and outsourcing passenger transportation services through contractual agreements with other companies.

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