Dubai Taxi Company PJSC (DTC), a leading name in the mobility solutions sector in Dubai, has embarked on a significant expansion journey by acquiring National Taxi LLC. This strategic move is poised to bolster DTC's market leadership in the UAE, particularly enhancing its footprint in the competitive taxi industry.

Established in 1994, DTC has consistently dominated the Dubai taxi market with an impressive 44% market share as of mid-2023. The company's latest acquisition of National Taxi, which operates over 2,500 licensed plates across Dubai and Abu Dhabi, is expected to increase DTC's market share by approximately 12% in Dubai and mark a meaningful entry into the Abu Dhabi market with a similar 12% share.

Financially, this acquisition is set to be transformative. National Taxi reported net revenues of AED 774 million, an EBITDA of AED 183 million, and a net profit of AED 101 million for the fiscal year ending July 2025. These figures are indicative of the potential financial scale and operational synergies that DTC can unlock through this acquisition.

The transaction, valued at AED 1.45 billion, is structured as a 100% acquisition funded through new bank debt facilities. Notably, DTC has committed to maintaining its attractive dividend profile without any equity issuance or dilution to existing shareholders. This strategic financial structuring underscores DTC's commitment to delivering shareholder value while pursuing growth opportunities.

Expected to complete by Q3 2026, subject to regulatory approvals, this acquisition represents DTC's first major move since its IPO. The company's strategic entry into the Abu Dhabi market aligns with its vision of expanding its comprehensive mobility solutions across the UAE.

Given the strategic nature of this acquisition and the promising financial metrics, the future looks optimistic for DTC. The company is well-positioned to leverage identified synergies and drive further growth in the UAE's mobility sector. For investors, this move signals a strong 'buy' recommendation, as DTC is likely to continue its trajectory of growth and profitability.