Dubai Taxi Company (DTC) on Wednesday announced its full acquisition of National Taxi LLC at an estimated enterprise value of Dh1.45 billion, as it looks to deepen its dominance in Dubai and establish a sizeable foothold in Abu Dhabi.
The acquisition will be funded entirely through new bank debt facilities, with the final consideration subject to customary post-completion adjustments under the terms of the agreement. The deal is expected to complete in early Q3 2026, subject to regulatory approvals, including from the Roads and Transport Authority (RTA) and Abu Dhabi’s Integrated Transport Centre (ITC).
Founded in 2000, National Taxi is one of the UAE’s largest private taxi operators, running about 2,500 licensed plates and a fleet of more than 2,700 vehicles across Dubai, Abu Dhabi and Al Ain. For the year ended July 31, 2025, the company recorded 25.4 million trips, achieved a fleet utilisation rate of 98 per cent, and generated net revenue of Dh774 million. Earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at Dh183 million, highlighting a strong operating and cash flow profile.
DTC said National Taxi’s business model closely mirrors its own, creating a high degree of operational compatibility and reducing execution risk during integration. The company plans a partial integration strategy, retaining the National Taxi brand and customer-facing operations, while consolidating central functions such as finance, procurement and back-office operations to extract efficiencies.
Once completed, the transaction is expected to lift DTC’s Dubai market share from 47 per cent to around 59 per cent, further strengthening its leadership position in the emirate. It will also give DTC an estimated 12 per cent market share in Abu Dhabi, providing a platform for long-term growth across multiple emirates.
Abdul Muhsen Ibrahim Kalbat, Chairman of Dubai Taxi Company, described the deal as a strategic inflection point for the group. “This acquisition represents an important strategic milestone for DTC, strengthening our leadership position in Dubai while establishing a meaningful presence in Abu Dhabi,” he said. “National Taxi is a well-established and high-quality operator with a strong financial profile, and this acquisition allows us to expand our platform, enhance scale and position the business for long-term growth.”
Chief executive Mansoor Rahma Alfalasi said the deal is expected to be earnings accretive from the first full year of ownership, with further upside from identified synergies. “The transaction is expected to be earnings accretive from the first full year of ownership, with further upside expected from procurement optimisation, centralised maintenance and disciplined integration over time,” he said, adding that the structure avoids equity dilution and preserves balance sheet strength.
Identified synergies are estimated at around 5 per cent of National Taxi’s net revenue, primarily from fleet procurement savings, centralised maintenance and back-office consolidation, with additional potential upside from revenue optimisation initiatives.
Over the past year, National Taxi appointed Emirates NBD Capital Limited and Lazard Gulf Limited who undertook a competitive process to assess investor interest for the potential acquisition of National Taxi, attracting attention from investors across North America, Europe, Middle East and Central Asia. “Ultimately, DTC submitted the most compelling proposal, and we are confident that DTC will guide National Taxi through its next phase of development,” said National Taxi Managing Director Toufic Mitri.
On a pro forma basis, the combined DTC–National Taxi fleet is expected to exceed 14,000 vehicles, serving an estimated 78 million trips annually across the UAE. Leverage is projected at around 2.5x net debt to Ebitda at completion, with progressive deleveraging anticipated, supported by strong cash flow generation.
Source: Khaleej Times