San Jose-based Archer Aviation expects to begin U.S. operations of its Midnight air taxi this year, following hundreds of test flights at its facility in Salinas, California.
The company has signed deals with Nvidia for AI technology that can provide pilot assistance and, eventually, autonomous operation, and with SpaceX’s Starlink for satellite connectivity. In line with its California roots, Archer has also been selected as the official air taxi provider of the 2028 Los Angeles Olympic Games, where its electric vertical takeoff and landing aircraft are expected to help athletes and visitors rise above L.A.’s notorious traffic.
But Archer is also working toward launching in a second market nearly halfway around the world from the Bay Area: Abu Dhabi, the capital and largest emirate of the United Arab Emirates.
That’s thanks to a combination of financial support from the Abu Dhabi Investment Office (ADIO) and major local sovereign wealth funds, along with a regulatory environment and climate that Archer and other next-generation aviation companies focusing on eVTOL aircraft, autonomous air vehicles, and other forms of airborne innovation say makes the emirate an ideal place to take flight.
“Abu Dhabi is Archer’s first international market, and that choice came down to a combination of factors that no other market could match,” writes Talib Alhinai, Archer’s general manager for the UAE, in an email. “The market fundamentals are strong, too. Abu Dhabi has a high concentration of frequent business travelers, real demand for premium mobility, and route opportunities where a flight takes under 20 minutes versus over an hour in a car on the road for the same trip.”
At first glance, Abu Dhabi might seem like a difficult place to operate new aircraft. The emirate regularly faces high temperatures, humidity, sand, and dust. But Alhinai says those challenges are outweighed by clear skies and predictable weather, which can help aircraft fly frequently and on schedule. Archer also says Abu Dhabi’s existing helicopter infrastructure can accommodate its aircraft with little modification.
Archer has seen its stock price trend lower in recent months from last year’s highs, and it has continued to losses as it develops its eVTOL aircraft. The company also remains involved in litigation with rival Joby Aviation over Joby’s allegations of corporate espionage and Archer’s claims Joby improperly imported materials from China. Still, Alhinai emphasizes the company is “in the final stretch toward initial passenger-carrying operations” after becoming the first company to complete Phase 3 of the Federal Aviation Administration’s four-phase type certification process for a new eVTOL aircraft.
And Archer is just one of many autonomous and eVTOL aircraft companies building or expanding operations in Abu Dhabi. That’s thanks in part to the Smart and Autonomous Vehicle Industries (SAVI) Cluster launched by ADIO and the Abu Dhabi Department of Economic Development (ADDED) in 2023, as well as a broad cross-government effort called the Smart and Autonomous Systems Council (SASC). Those initiatives are designed to provide a variety of infrastructural support and regulatory assistance to innovative transportation and robotics businesses in Abu Dhabi, which can be as critical to the heavily regulated transportation center as the financial support needed as new products are developed.
It’s a push that’s ultimately expected to bring 40,000 new jobs and add roughly $12 billion to Abu Dhabi’s gross domestic product by 2045, even as it helps to more efficiently transport people and goods across the area. And while the different organizations and initiatives can sound like a bureaucratic alphabet soup, officials and business leaders say the agencies are working together to cut red tape and facilitate regulatory and financial backing for innovative transportation technology.
“We connect them with all of the enablers that are required to help them to be successful,” says Ali Mustafa AlHashmi, acting section head for the SAVI Cluster at ADIO. “All of the enablers are working towards shared goals and shared KPIs, which makes it easier in terms of coordination and in terms of collaboration.”
To that end, ADIO has worked with local regulators to create appropriate certifications for new types of air mobility services, and it’s coordinating with local universities to ensure future workers have what it takes to contribute to the sector.
The goal, says AlHashmi, is to make Abu Dhabi not only a user of the technologies but a hub for their development, commercialization, and export.
LODD Autonomous, an autonomous air cargo transport company, was founded in Abu Dhabi in 2023 and aims to create the first civilian aircraft to be built in the UAE. Working with the SAVI initiative and local regulators, the company was able to complete the design of its Hili autonomous cargo aircraft, named for an ancient settlement in Abu Dhabi and rugged enough to operate in Abu Dhabi’s hot and sandy environment, in just 21 months. “If our aircraft performs well here, it can operate almost anywhere,” writes LODD CEO Rashid Mattar Al Manai in an email.
LODD is now working on multiple drone delivery pilot programs with support from ADIO. The company plans to begin experimental operations of Hili, which can take off vertically before transitioning to fixed-wing flight, by the second quarter of 2027. On July 2, LODD announced that it had begun the formal certification process for Hili with the UAE’s General Civil Aviation Authority. The aircraft is designed to carry up to 250 kilograms, or about 550 pounds, over distances of up to 700 kilometers, or about 435 miles.
“Our ambition is to prove that systems designed and produced in the UAE can compete with similar technologies coming from countries with long-established aerospace industries,” writes Al Manai.
Companies say support for these projects extends beyond government agencies. Archer’s Alhinai points to Abu Dhabi’s smart city infrastructure and a broader culture of early technology adoption. The company’s first customer there is Abu Dhabi Aviation, the largest helicopter operator in the Middle East. LODD has also announced a partnership with Etihad Cargo, which will evaluate Hili’s role in point-to-point shipments.
Abu Dhabi’s push into transportation innovation isn’t limited to the skies: In June, Abu Dhabi’s Integrated Transport Centre (ITC) announced that it was exploring an autonomous public bus trial with a local autonomous transit company called Lumo, and the ITC also recently announced field trials, backed by ADIO, of an autonomous maritime patrol boat. The emirate has also since 2024 hosted the Abu Dhabi Autonomous Racing League, which today features high-speed competitions between both cars and aerial drones. And Abu Dhabi in November became the first city outside the United States to offer autonomous Uber service, thanks to a partnership with WeRide. Baidu has also launched autonomous taxi service on Yas Island, a resort and entertainment center within Abu Dhabi.
Like the aviation projects, those efforts rely on support from local authorities, including the ITC, ADIO, and regulatory bodies.
“Working with local authorities has been one of the most constructive parts of this process,” writes Archer’s Alhinai. “The GCAA has participated in joint working sessions at our headquarters in California and has been actively building the regulatory framework alongside us.”
To a large extent, Abu Dhabi’s push into autonomy and futuristic air transport reflects sustained backing from the emirate’s leaders. Abu Dhabi is hardly alone in that respect. Archer also points to support in the U.S. from the federal Advanced Air Mobility and Electric Vertical Takeoff and Landing Integration Pilot Program. Aviation and transportation systems around the world have long depended on government investment, regulation, and procurement.
But AlHashmi says the emirate’s leaders are committed to the sector’s development for the long haul—and actively encouraging more international businesses to set up shop in Abu Dhabi. “We’re open and looking forward to more collaborations with global companies,” he says.