New law makes Dubai Taxi joint stock firm ahead of IPO

Gulf Today, Staff Reporter

In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, issued Law No. (21) of 2023 pertaining to ‘Dubai Taxi Company’.

Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, also approved the Council’s Resolution No. (93) of 2023 on ‘Dubai Taxi Company’s’ Articles of Associations including the bylaws and regulations.

This includes the initiation of floating the Company’s shares for an Initial Public Offering (IPO) in accordance with the ratios established by The Executive Council of Dubai.

It also encompasses defining the purposes and objectives of the Company, as well as the procedures for the appointment and election of the Company’s Board of Directors, among other bylaws and regulations that govern the Company's operations.

Sheikh Hamdan also issued Executive Council Resolution No. (92) of 2023 forming the Board of Directors of ‘Dubai Taxi Company’ chaired by Abdul Mohsin Ibrahim Younis. Ahmed Ali Al Kaabi serves as Vice Chairman of the Board. 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 two Resolutions are effective from their date of issuance and will be published in the Official Gazette.

‘Dubai Taxi Company (PJSC)’

Law No. (21) of 2023 amends the legal status of Dubai Taxi Corporation, created pursuant to Executive Council Resolution No. (48) of 2016.

It is now recognised as a public joint-stock company named 'Dubai Taxi Company (PJSC),' with financial and administrative independence, enabling it to pursue its activities and objectives.

The Law also mandates the revision of the term 'Dubai Taxi Corporation' wherever it is referenced in the existing laws of the emirate, to be substituted with 'Dubai Taxi Company (PJSC).’

The Law also outlines that the Company's duration is 99 years, starting from the date of its registration in the commercial register as per the prevailing laws in the emirate. Additionally, it is automatically renewable for a similar period in accordance with the Company's Articles of Association.

Company Objectives

The Law specifies the Company's objectives, including providing transportation services using taxis, in compliance with the current regulations in the emirate, and offering specialised transportation using self-driving vehicles and flying taxi services, with adherence to existing regulations. Furthermore, the Company is involved in leasing vehicles with or without drivers, facilitating the provision of qualified drivers., engaging in leasing of bikes for cargo transportation companies and pursuing other purposes outlined in the Company's articles.

Passenger Transport Services

According to the Law, ‘Dubai Taxi Company (PJSC)’ will provide passenger transport services in areas and locations specified by the current legislation in the emirate, or as determined by a resolution from the Chairman of The Executive Council of Dubai.

‘Dubai Taxi Company (PJSC)’ is permitted to outsource passenger transportation services through contractual agreements with interested companies and entities. The contract specifies its duration, rights and obligations of both parties, without contravening the provisions of this Law and the prevailing regulations in the emirate.

This Law annuls Executive Council Resolution No. (48) of 2016 pertaining to Dubai Taxi Corporation and any other legislation that may contradict with this Law. Decisions and regulations issued to implement Resolution No. (48) of 2016 remain in place as far as the don’t contradict with articles of this Law until new decisions and bylaws are issued to replace them.

This Law is effective from the date of its issuance and will be published in the Official Gazette.