Dubai Taxi Company Sees 54% Rise in 2023 Net Profit, Plans Dh71m Dividend Payout

The Dubai Taxi Company (DTC) has wrapped up 2023 with impressive financial figures, reporting a remarkable 54% increase in net profit, reaching Dh345.3 million. This surge was bolstered by an 11% rise in revenues, attributed to a surge in the number of rides and an expansion in its fleet, which now boasts over 7,300 vehicles.

DTC’s performance is particularly noteworthy following its successful initial public offering (IPO) and subsequent listing on the Dubai Financial Market (DFM). The company, which was the last to be listed on the DFM in 2023, remains optimistic about its growth prospects in 2024.

According to Mansoor Rahma Alfalasi, CEO of DTC, the company remains committed to its strategic priorities, including fleet expansion and the adoption of smart technologies to enhance operational efficiency. Alfalasi emphasized DTC’s crucial role in Dubai’s transportation infrastructure and its commitment to further growth.

The board of DTC has approved a dividend payout of Dh71 million for the fourth quarter of 2023, scheduled for distribution in April 2024. This dividend translates to 2.84 fils per share and underscores the company’s commitment to delivering value to its shareholders.

In 2023, DTC’s vehicles completed a staggering 46 million trips, marking an 8% increase from the previous year. Looking ahead, DTC anticipates continued growth, driven by Dubai’s robust economic outlook and anticipated population and tourism growth.

Abdul Muhsen Ibrahim, Chairman of DTC, highlighted the company’s strategic vision aligned with Dubai’s ambitious urban development plans. He emphasized DTC’s readiness to capitalize on market opportunities and deliver long-term growth and value creation for its shareholders.

Furthermore, DTC is well-positioned to benefit from Dubai’s urban master plan, which aims to develop new urban clusters, driving increased demand for taxi services. The company’s strategy focuses on fleet expansion, operational efficiency improvements, and market expansion into neighboring emirates.

DTC’s financial performance in 2023 saw a significant increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching Dh490.5 million, with an impressive operating margin of 25%.

Despite economic uncertainties, DTC remains confident in its growth trajectory, supported by Dubai’s status as a premier tourist destination and ongoing urban development initiatives. The company’s prudent financial management, including securing term loans and credit facilities, underscores its commitment to sustainable growth and value creation.

As Dubai continues its journey towards becoming a global hub for business and tourism, DTC remains a key player in providing efficient and reliable transportation services, contributing to the emirate’s economic prosperity and development.