Flying taxis in UAE: Abu Dhabi’s IHC buys stake in flying carmaker Archer

Abu Dhabi-based International Holding Company (IHC) has bought a stake in US flying car manufacturer Archer, which will launch flying taxi operations in the UAE along with local partners early next year.

Archer said it raised $430 million (Dh1.578 billion) from four companies including 2PointZero – a subsidiary of UAE’s largest listed firm IHC, Stellantis, United Airlines, and Wellington Management.

Listed on the Abu Dhabi Securities Exchange, IHC is owned by Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security Advisor.

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“We've raised another $430 million in strategic capital, bringing our total raised to nearly $2 billion and solidifying Archer's balance sheet as one of the largest in the sector. We are excited to welcome back long-time investors United Airlines and Stellantis, as well as new institutional investors, including Wellington Management and Abu Dhabi investment holding company 2PointZero, a subsidiary of UAE’s largest listed entity, International Holding Company,” said Nikhil Goel, chief commercial officer of Archer.

Goel said Archer is “excited” to partner with Sheikh Tahnoon and IHC.

However, he refused to disclose how much IHC invested in the company.

International Holding Company, a highly diversified conglomerate, announced a net profit of Dh12.3 billion for the first half of 2024, marking an impressive 18 per cent jump compared to the same period last year. Its revenue reached Dh41.7 billion, representing a 46 per cent year-on-year increase.

No more financing needs

As reported by Khaleej Times, Archer along with its UAE partners have announced the launch of flying taxi operations in Abu Dhabi early next year. It will also establish a flying car manufacturing facility in Abu Dhabi.

On December 6, Archer Aviation announced that it entered into a multi-party collaboration agreement with key UAE and Abu Dhabi entities to formalise the cooperation for the launch of the first commercial eVTOL flight. It was signed under the auspices of the Smart and Autonomous Systems Council (SASC), in the presence of Sheikh Hamdan bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Special Affairs.

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