Digital transformation is afoot in the UAE. From ordering groceries online to hailing cabs in a matter of minutes, the pace of digitalization has accelerated access across emirates. 

As the UAE becomes home to 11 million people in 2025, the demand for smarter transportation solutions is likely to swell and inspire competitive innovation. In a bustling metropolis like Dubai, it takes three and a half minutes to avail the closest taxi on a ride hailing app. This statistic is likely to shrink considerably by 2029 to attract nearly 5 million users, and account for 100% of the ride hailing market’s revenue. 

From innovative e-hailing services to sustainable mobility options, ride hailing apps are reshaping the way people move through the UAE’s bustling urban landscape. 

But now, the competition is intense, with the entry of new players like Yango and Bolt. 

“The UAE’s mobility market is experiencing significant growth, driven by rapid urbanization, a tech-savvy population, and a strong commitment to sustainability,” says Khaled Nuseibeh, CEO of Hala.

HIGH GROWTH 

The shared mobility sector in the UAE is projected to increase by 4.11% between 2025 and 2029, reaching a market volume of approximately $4.52 million by 2029. 

According to Islam Abdul Karim, Regional Head of Yango Middle East, the sector is being shaped by the competitive landscape and government initiatives. Ride-hailing companies in the UAE thrive on open market conditions with fewer entry barriers.

“While new companies might navigate certain challenges, those that align with the country’s vision for smart, efficient, and AI-driven transportation can thrive,” Abdul Karim says, adding that the UAE’s strict regulations maintain high standards of safety and efficiency, which, while presenting initial barriers for newcomers, help create a structured and reliable market.

Ride-hailing companies are seizing the moment, benefiting from the industry-wide pickup in demand and their strong execution of new functionalities.

Hala has strategic partnerships, especially with the RTA, and is able to integrate cutting-edge technology with traditional taxi services. “We offer features like WhatsApp booking and interactive in-ride screens, which improve convenience and enhance the user experience,” says Nuseibeh. 

This commitment to customer-centric innovation has resulted in impressive metrics, including a 17% year-on-year growth in taxi trips and a 21% increase in average monthly active users.

Yango emphasizes its role as more than just a ride-hailing service. “We are not just a ride-hailing service — we’re an ecosystem that seamlessly integrates mobility, mapping, delivery, entertainment, AI-powered services, and beyond,” says Abdul Karim. 

Yango’s suite of services includes Yango Maps for navigation, Yango Delivery for logistics, Yango Play for in-ride entertainment, and Yasmina, an advanced Arabic AI voice assistant. 

A DYNAMIC SECTOR

“The UAE’s mobility sector is dynamic,” says Alain Kassis, Founder of Delicrew. “Unlike adjacent sectors like food delivery and quick commerce, price and accessibility often favor ride-hailing apps. When you’re looking for a cab, time is the most crucial metric at play. Ideally, customers want a cab as soon as possible.”

Ride-hailing apps capitalize on convenience and speed. “The way ride-hailing apps are designed, convenience and speed take center stage on the UI,” says Kassis. “Similar to the principle of menu psychology used to tweak digital menus on food delivery apps, ride-hailing apps capitalize on proximity and convenience when displaying ride options to customers.”

EMBRACING COMPETITION

With Bolt’s recent entry, an Estonian ride-hailing startup, maintaining market share requires constant innovation. “Competition is part of a dynamic market, and it’s not just about new players entering; it’s about how products evolve to meet customer expectations,” says Nuseibeh. 

Hala’s investment in smart technologies like High-Density Location solutions helps optimize fleet distribution, reduce wait times, and ensure taxis are available in high-demand areas.

Yango’s key to maintaining market share is its diverse service offerings. “Advanced AI tech ensures faster, more efficient rides and delivery services, while our seamless user experience prioritizes convenience and reliability,” Abdul Karim says. 

SUSTAINABLE MOBILITY 

In a taxi-centric market with nearly 2 million loyal daily commuters, sustainability is central to staying on track. 

Hala, collaborating closely with RTA, aims to electrify its taxi fleet and introduce electric vehicle models like BYD, Skywell, and Tesla. “We’re actively expanding our fleet of electric and hybrid vehicles, contributing to Dubai’s goal of making 100% of taxis eco-friendly by 2027,” says Nuseibeh.

Beyond the vehicle itself, smart routing technology is being leveraged to curb fuel consumption and minimize emissions. “The real value of adopting tech in mobility is in how it makes transportation more accessible, smoother, and sustainable,” says Abdul Karim. With over 4.74 million ride-hailing users expected by 2029, Yango plans to capitalize on the market’s growth.

With a rapidly growing urban population, limited public transportation options, and increasing traffic congestion, the country’s demand for ride-hailing services will continue to rise.