Dubai Public Transportation Authority is reportedly hoping for a switch to its privatisation process to be initiated soon by next month. Dubai Taxi Corporation (DTC), a unit of the transportation authority in the Emirates is gearing up to initiate the first privatisation step of the upcoming year in the city. The effort aims to collect $300 or Dhs1,101,885,000 approximately by sharing a sale which is scheduled for next month. The invitations of the company disclosed the authority through a presentation informed by the insiders.

As per the plan for the coming Initial Public Offering (IPO) in April, the Dubai Taxi Corporation (DTC) has a plan of action to distribute approximately $19 million or AED71 million as a dividend for quarter four. Subsequently, after the privatisation process, Dubai Taxi Corporation will be responsible for disbursing a minimum of its annual net profit worth 85 percent following two contributional payments, starting from the upcoming financial year of 2024.

This privatisation process switches a service, business, or industry to private from public control and ownership. At this stage of this process, it is not so clear to declare the changes for the taxi users after the cab privatisation process. People who strongly support the privatisation initiative convey how effectively a privately owned company runs the business with efficiency.

The privatisation indicates that afterward, the Dubai taxis will run under the process of investment and profit structure, but it is not so clear that as a result of this may directly impact the taxi fares or not.

Dubai Roads and Transport Authority (RTA) has a  successful collaboration with Bank of America Corporation, Emirates NBD Capital, and Citigroup Inc. to facilitate the offers that are going to be listed in the stock exchange group of Dubai.

This initiative step comes to action as the Road and Transport Authority of Dubai seeks some effective monetization of their assets, afterward the success of the Initial Public Offering of Dubai’s city road toll operator into a public joint stock company, Salik Co. worth $1 Billion back in 2022.

At the extended time, it increased the advertisement of Salik to advance the Initial Public Offering (IPO) became the reason the residents should worry more about gateways being imminently added. However, in the current situation, Dubai operates only eight gates throughout the city and asks for the same amount of charges as before the IPO. It was also expected during the time that there might be huge charges or pricing will get added in Salik Co. which will initially see a  raising of toll charges during the peak hours and busiest time schedules for some particular lanes in the city. Even in the case of Salik Co., there are no added charges and no particular changes have been added to the price until the current situation.

 It is also expected that an Initial Public Offering (IPO) of Dubai Parking will go in the same footsteps for further drive to initiate privatisation with the region.