News developments
Dubai: Dubai Taxi Company Law Issued
Khaleej Times (United Arab Emirates), 12 November 2023: Following the issuing of Dubai Law No. 21/2023 establishing a Dubai Taxi Company, they will sell shares via an initial public offering.
It is the latest initial public offering to be carried out by the government since COVID-19.
Their listing is one of ten to be announced by the Dubai Financial Market to increase liquidity in the equity market and boost their market capitalisation to three trillion AED.
Until now, only the utility services provider Dubai Electricity and Water Authority, toll gate operator Salik, Tecom Group and district cooling company Empower have been listed on the Dubai Financial Market.
Dubai Taxi Company will have its own financial and administrative independence.
It will operate for 99 years. This period will be calculated from the date of its registration in the commercial register.
It will be automatically renewed for another 99 years.
As well as providing transportation services for taxis, the Company will also offer specialised transportation using self-driving vehicles and flying taxi services. The Company will also be involved in leasing vehicles with or without drivers, engaging in leasing bikes for cargo transportation companies and pursuing other purposes outlined in their Articles of Association.
Finally, the Company will be able to outsource passenger transportation services through contractual agreements with other companies.
However, Dubai Law No. 21/2023 does not specify when and how much of the Company’s shares will be included as part of the initial public offering.
Dubai’s Crown Prince and Chairman of the Executive Council also approved Dubai Executive Council Decision No. 93/2023 approving Dubai Taxi Company’s Articles of Association. This includes the relevant bylaws and regulations.
In addition, Dubai Executive Council Decision No. 92/2023 has been issued appointing Abdul Mohsin Ibrahim Younis as Chairman, and Ahmed Ali Al Kaabi as Vice Chairman. Among others, Shehab Hamad Abu Shehab, Youssef Ahmed bin Ghalaita, Dr Hanan Sulaiman Al Suwaidi, Abdulla Mohammed bin Damithan, and Issa Abdullah bin Natouf will also be members of the board.
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