Dubai has inked an agreement with U.S.-based Boring Company to commence the first phase of the Dubai Loop tunnel project. The scope of the project is an underground high-speed transport network that is set to start immediately. These remarks were noted by a UAE official earlier this week. “The project covers 24 kilometres (14.9 miles) in Dubai with a ⁠cost of nearly 2.5 billion ($680.81 million). The first phase to ‍start immediately with 600 million dirham covering six kilometers,” noted Mattar Al Tayer. Mattar is the Director General and Chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA), said.

Dubai RTA, a state-owned entity, had agreed with the Boring Company on the project earlier last year. The deal was signed in the presence of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, crown prince of Dubai in the United Arab Emirates’ (UAE). The memorandum of understanding (MoU) was signed by Mattar Al Tayer and John Hering, senior advisor to The Boring Company. Dubai is making efforts in other transport projects across UAE such as the Al-Maktoum metro link project tendered earlier last week.

The Significance of the Dubai Loop Tunnel Project

The Dubai Loop tunnel project envisions a 22.2 km (14 miles) stretch featuring 19 stations that link Dubai World Trade Centre and the financial district with Business Bay. The Loop will be designed to transport over 20,000 passengers per hour in the city of over 3.6 million. The Boring Company also highlighted the loop system’s potential to revolutionize urban transport with fast, safe, and efficient underground networks. In an interesting twist, the Loop will rely exclusively on Tesla vehicles and is designed to ease congestion across some of the city’s busiest corridors.

Furthermore, it lays the groundwork for a much larger network. The first phase of the Dubai Loop tunnel will consist of a 6.4-kilometre (4 mile) pilot route featuring four underground stations. This initial segment will connect the Dubai International Financial Centre (DIFC) with Dubai Mall. The move offers placing major commercial, retail, and tourism hubs just minutes apart via an underground electric transport system. According to Dubai’s Roads and Transport Authority, construction on this phase is starting immediately, with completion targeted within two years.

Technically, the Dubai Loop will also closely mirror The Boring Company’s existing Loop system operating in Las Vegas. The tunnels will have a diameter of 3.6 meters and are purpose-built for vehicle transport. Through this, Teslas will be able to shuttle passengers from point-to-point without intermediate stops.

Project Factsheet

• Location: Dubai, United Arab Emirates
• Project owner: Roads and Transport Authority (RTA), Dubai
• Technology partner: The Boring Company (U.S.) also involved
• Project type: Underground high-speed electric transport tunnel network
• Total planned length: ~24 km (14.9 miles)
• Estimated total cost: AED 2.5 billion (approx. $680 million)
• Phase one scope:
  • Value: AED 600 million
  • Length: 6–6.4 km (around 4 miles)
  • Stations: Four underground stations
  • Route: Dubai International Financial Centre (DIFC) to Dubai Mall
• Design capacity: Over 20,000 passengers per hour
• Vehicles: Tesla electric vehicles only
• Tunnel diameter: 3.6 meters
• Operations: Point-to-point transport with no intermediate stops
• Long-term vision: Up to 19 stations linking Dubai World Trade Centre, the financial district, and Business Bay
• Construction status: Phase one starting immediately