Dubai Taxi Company (DTC) has announced a net profit of Dh345.3 million for the year 2023, up 54% from the previous year. The company’s revenue increased by 11%, driven by a higher number of trips and growth in its fleet size, which now stands at over 7,300 vehicles.
DTC is optimistic about its chances for growth in 2024, bolstered by Dubai’s strong economic outlook and a forecasted compound annual growth rate (CAGR) population growth of 2.8% between 2023-40, as well as a tourism-generated CAGR growth of 20.5% between 2023-25. The company has a well-defined vision and strategy that capitalizes on Dubai’s ambitious urban development and robust resident and tourism growth.
DTC is coming off a strong IPO and subsequent listing on the Dubai stock exchange, which was the final listing of 2023. The company’s CEO, Mansoor Rahma Alfalasi, has attributed the growth to the company’s strategic priorities, including expanding its fleet and implementing smart technologies to drive efficiency across segments. He also highlighted the supportive environment for growth driven by Dubai’s status as a premier tourist destination and the expansion of the emirate’s urban areas.
The DTC board has approved a Q4-2023 dividend of Dh71 million, to be distributed in April 2024. DTC had secured a Dh1 billion term loan in 2023 with a maturity of 5 years, as well as a revolving credit facility of Dh200 million, from which there were no drawdowns last year.
DTC is in a strong position to capture value from this growth by continuing to execute its well-defined strategy of fleet expansion and operational efficiency improvements, while continuing its expansion into neighbouring emirates and exploring market consolidation opportunities. Moreover, the Dubai 2040 Urban Master Plan, which will see the development of new urban clusters, is expected to drive increased demand for taxis and limousines, which DTC is well-positioned to capture.
Mansoor Rahma Alfalasi, CEO of DTC, said,
“Looking ahead we see a supportive environment for growth driven by Dubai’s status as a premier tourist destination and the expansion of the emirate’s urban areas.” He also added, “With a leading taxi market share in Dubai and several opportunities to expand into neighboring emirates, DTC plays an instrumental role in connecting people and developing the nation’s world-class transportation infrastructure.”
Abdul Muhsen Ibrahim, Chairman of DTC, said,
“DTC has a well-defined vision and strategy that capitalises on Dubai’s ambitious urban development and robust resident and tourism growth, ensuring we are well positioned to deliver long-term growth and value creation for our shareholders.”
DTC remains optimistic about its future growth prospects and its ability to deliver long-term growth and value creation for its shareholders. The company continues to innovate and expand its fleet, while keeping pace with smart technologies to drive efficiency across segments.
