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Joby and Skyports have begun construction of the first of four vertiports planned in Dubai.
The announcements have been piecemeal, but the accumulating message is clear: The Middle East is positioning itself to be a major player in advanced air mobility once aircraft are certified and ready for service.
With an imperative to invest in sustainable industries with global markets while oil revenues continue to flow, aircraft and helicopter operators, aviation regulators, economic development agencies and sovereign wealth funds are aligning to be leaders in the emerging industry. As a result, there is a strong possibility that electric air taxis could make their global debut on the Gulf stage.
- UAE pushes to debut air taxis in 2026
- Saudi Arabia aims to be a fast follower
Balanced as it is geographically and geopolitically between the West and the East, the Gulf region is looking to benefit from advanced air mobility (AAM) developments wherever they are happening. Tie-ups announced in the past 2-3 years have been distributed among U.S., European and Chinese manufacturers jockeying for a share of the potentially lucrative, if still uncertain, Middle East market.
United Arab Emirates
In Dubai, the most populous of the emirates, the Roads and Transport Authority (RTA) is taking the lead in introducing AAM. The agency signed an agreement in February with electric vertical-takeoff-and-landing (eVTOL) manufacturer Joby Aviation and vertiport developer Skyports to launch passenger air taxi services by early 2026.
The agreement gives the companies exclusive rights to operate air taxis and build, own and operate vertiports in Dubai for six years. Integrated with RTA’s public transport system, the initial network is to include locations at Dubai International Airport, Palm Jumeirah, Dubai Downtown and Dubai Marina. Construction of the first vertiport has begun at Dubai International.
In another pioneering move, the UAE government’s Regulations Lab has granted package-carrier UPS a temporary license to test an electric aircraft for cargo operations in Dubai. UPS is to use Beta Technologies’ conventional-takeoff-and-landing Alia and also plans to test the eVTOL Alia.
Joby will have more company in the emirate. Archer Aviation has signed a memorandum of understanding (MOU) with Dubai-based heliport operator Air Chateau for the planned purchase and operation of up to 100 Midnight eVTOLs. Air Chateau also has signed a preorder with Spanish startup Crisalion Mobility for 10 Integrity eVTOLs to support the development of air taxi services.
With investment from Dubai-based aircraft brokerage ArcosJet, Air Chateau plans to develop a network of up to eight locations in the UAE for use by both helicopters and eVTOLs. ArcosJet, meanwhile, is the exclusive dealer for private sales of the Lilium Jet eVTOL in the region, with a preorder for 10 aircraft.
In the second most populous emirate, the Abu Dhabi Investment Office (ADIO) is taking the lead in efforts to attract the AAM industry. ADIO has established the Smart and Autonomous Vehicles Industry (SAVI) cluster in Masdar City as a hub for mobility in the region. Nibras Al Ain Aerospace Park, a joint venture between sovereign wealth fund Mubadala and Abu Dhabi Airports, provides test facilities.
Archer, Joby and China’s EHang are among eVTOL developers that have joined the SAVI cluster. Archer signed a framework agreement with ADIO in April, aiming to launch air taxi operations in the UAE as soon as late 2025 and covering vertiport construction and in-country manufacturing of the Midnight.
Mubadala is an investor in Archer, which has selected Abu Dhabi-based business aviation services provider Falcon Aviation to operate its eVTOLs in the UAE. Archer and Falcon will develop the vertiport network jointly, and they plan initial sites at Atlantis, The Palm in Dubai and Marina Mall on Abu Dhabi’s Corniche. Archer also has signed an MOU with Etihad Aviation Training to recruit and train eVTOL pilots and with GAL-Ammroc for maintenance, repair and overhaul (MRO) services.
Rival Joby has signed an MOU with Abu Dhabi’s Municipalities and Transport, Economic Development, and Culture and Tourism departments that lays the groundwork for air taxi operations in Abu Dhabi and unlocks the potential for interemirate service.
Falcon, meanwhile, signed a letter of intent with Eve Air Mobility in 2022 for up to 35 eVTOL aircraft, with deliveries expected to start in 2027 for tourist flights from the Atlantis, The Palm resort. Falcon also signed an MOU in 2023 with Chinese cargo and passenger eVTOL developer AutoFlight to develop an AAM strategy for the Middle East. AutoFlight conducted demonstration flights in May with its CarryAll cargo eVTOL in Al Ain, Abu Dhabi.
AAM players in Abu Dhabi include conglomerate Multi Level Group, which has partnered with EHang. The Chinese startup is looking to set up its regional headquarters in Abu Dhabi and is working with ADIO to find regional partners for R&D, manufacturing, flight operations, training and support. EHang conducted autonomous eVTOL demonstration flights in Abu Dhabi in May. Multi Level Group also is collaborating with the state-owned Abu Dhabi National Oil Co. to explore implementation of transport logistics operations using eVTOLs for cargo operations.
The UAE Economy Ministry launched the NextGenFDI foreign direct investment program in 2022 to attract technology industries to the emirates. U.S. startup Odys Aviation partnered with the program to establish a regional headquarters and assembly plant in Abu Dhabi.
Backed by Knighthood Global, an Abu Dhabi-based investment firm, Odys has partnered with package-carrier Aramex to develop uncrewed eVTOL cargo operations in the region. Odys also has signed an agreement with Omani public transport operator Mwasalat to conduct a pilot program in 2025.
Aramex, meanwhile, has a letter of intent with uncrewed cargo startup Dronamics. The UAE’s Strategic Defense Fund (SDF), part of the Abu Dhabi-based conglomerate Edge Group, is a strategic investor in Dronamics. SDF also has invested in U.S. startup Mayman Aerospace and the UK’s Cranfield Aerospace Solutions, which is developing hydrogen-electric propulsion systems for regional aircraft and uncrewed cargo aircraft.
Northernmost of the seven emirates, Ras Al Khaimah also has joined the AAM push. Its Transport and Tourism Development Authorities signed an MOU in May with Skyports to develop and operate a network of vertiports across the emirate, with commercial operations set to commence by 2027.
Saudi Arabia
Developing the aviation ecosystem is a cornerstone of Saudi Arabia’s Vision 2030 program to diversify its economy and grow its non-oil sectors. A key enabler is the Saudi Aviation Strategy, backed by an expected $100 billion in public and private investment. AAM is intended to contribute to goals including tripling passenger traffic, doubling cargo capacity and expanding connectivity.
An early mover into AAM is Neom, a megaproject to develop cities, resorts, trade hubs and industrial complexes in 26,500 km2 (10,200 mi.2) of desert at the northern tip of the Red Sea. Owned by the Saudi Public Investment Fund (PIF), Neom launched a joint venture with eVTOL developer Volocopter in 2021 to operate zero-emission public transit routes across the region.
Almost a year later, Neom invested $175 million in the German startup, and together they conducted the first eVTOL flights in Saudi Arabia in November 2023. Neom placed an initial order for 15 eVTOL aircraft, aiming to begin operations by 2026. Neom also made an investment in hydrogen-electric aircraft propulsion developer ZeroAvia in 2023 as part of its drive to maximize use of renewable energy sources.
ZeroAvia has also signed an MOU with Red Sea Global, a PIF-owned tourist resort megaproject, to develop a road map for hydrogen-powered air transport and explore conversion of its fleet of Cessna Caravan seaplanes.
Saudia Group, the holding company for government-owned flag carrier Saudia, signed an order in July for 50 Lilium Jet eVTOLs. Despite Lilium’s insolvency, the company still expects deliveries to charter subsidiary Saudia Private Aviation to begin in 2026 for operation on routes from Jeddah and Riyadh, flying pilgrims to Mecca and tourists to Neom and Al Ula.
The kingdom’s Transport and Logistics Services Ministry and General Authority of Civil Aviation launched a trial of autonomous air taxis in June at Saudi Arabia’s holy sites. Partnered with Saudi investment and development company Front End, China’s EHang conducted a trial of its EH216-S in Mecca.
Another Saudia Group company, Saudia Technic, has signed a memorandum of agreement with Eve Air Mobility to assess potential demand for eVTOL MRO in the region. Eve signed an MOU in November 2023 with Saudi low-cost carrier Flynas, partly owned by the PIF, to explore the possibility of starting eVTOL operations in Riyadh and Jeddah in 2026. Italian vertiport developer UrbanV has partnered with Saudi Arabia’s Cluster2 Airports to conduct feasibility studies into implementing AAM at Cluster2’s 22 airports.
The Helicopter Co. (THC), a commercial helicopter services provider, was established in 2018 by the PIF to support Vision 2030. In addition to framework agreements with Airbus and Leonardo for up to 250 helicopters, THC signed an MOU with Bristow Group in February to work together on AAM in the kingdom. Bristow has preorders in place with multiple AAM OEMs.
The path blazed by the UAE is being followed by other nations in the Middle East with Saudi Arabia’s ambitions, Oman’s cargo drone pilot program and Qatar’s emergence as an investor in AAM through the Qatar Investment Authority’s stake in Beta.
Not everyone is convinced the Middle East is a market made for AAM. “When will an eVTOL, or anything AAM, actually enter service? The answer always seems to be, ‘Two years from now, in Dubai!’ ” Aerodynamic Advisory Managing Director Richard Aboulafia wrote in a September letter.
Others are more optimistic. “With Joby starting vertiport construction and Archer hiring a dedicated person in UAE, both companies are preparing for service there,” SMG Consulting Partner Sergio Cecutta says. “We expect an early 2026 start driven by who can deliver aircraft and how many, considering that any conforming aircraft in service in the UAE is one less dedicated to FAA certification.”
But noting Joby’s statement that local approval by the UAE General Civil Aviation Authority could precede type certification by the FAA, Cecutta acknowledges it will take a big commitment by the regulator, as it will be its first “ground up” certification.
This is not a region where regulation is less stringent but one where regulators are regarded as being more willing to lean forward in embracing new technology. Dubai, for example, witnessed the first public eVTOL demonstration flights in 2017. But it is a region that adheres to the highest safety standards, primarily following the European Union Aviation Safety Agency, so the bar is set high.
However proactive the region is, as a target market, the Middle East is at the mercy of industry developments. Declared objectives to begin AAM services in 2026 depend on manufacturers meeting their certification and production timelines, and there have been many delays already. The risk inherent in developing a new industry and new market simultaneously is disappointment. For a Middle East market that has leaned into AAM, the hope is this will turn not into disillusionment but leadership.
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