The initiative is seen as similar to the US’ Vegas Loop. Credit: Government of Dubai RTA.

The Dubai Road and Transport Authority (RTA) has entered into a preliminary agreement with The Boring Company, which specialises in low-cost tunnel construction, to construct the Dubai Loop, a high-speed underground transport system.

The United Arab Emirates’ AI minister, Omar Al Olama, unveiled the Dubai Loop project during a video interview with The Boring Company’s founder, Elon Musk, at the World Governments Summit 2025.

The agreement entails a pilot phase stretching 17km, featuring 11 stations, where electric vehicles (EVs) will transport passengers through tunnels at speeds of up to 160km/h.

This initiative is part of a broader strategy to develop a comprehensive loop transportation network across Dubai.

The memorandum of understanding (MoU) was signed in the presence of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chair of Dubai’s executive council.

RTA’s director general and executive director board chair Mattar Al Tayer and The Boring Company’s lead investor and senior advisor, John Hering, signed the MoU, which aims to collaborate on tunnel excavation and construction.

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Al Tayer said: “The MoU aligns with the directives of the leadership to forge partnerships with leading global companies, reinforcing Dubai’s position at the forefront of advanced and sustainable mobility solutions.

“It aims to implement cutting-edge technologies, foster innovative transport solutions, and create a dynamic ecosystem for the advancement of transportation technologies. Additionally, the agreement facilitates knowledge and expertise exchange to develop transportation systems tailored to the city’s evolving needs.”

Al Tayer stated that the technology employed in the Dubai Loop will deliver “rapid execution, lower costs” over traditional tunnelling methods, as well as “minimal impact” on existing infrastructure.

Drawing parallels with the Vegas Loop in the US, which began operations in 2021, the Dubai Loop aims to alleviate congestion in Dubai’s busiest districts.

The system is stated to be designed to initially handle more than 20,000 passengers per hour, with the potential to exceed 100,000 passengers per hour in the future.

Last December, RTA announced awarding a Dh20.5bn ($5.58bn) contract for the Dubai Metro Blue Line project to a consortium of Turkish and Chinese companies.