2 minThe Boring Company bets on the Gulf: Dubai Loop, an Abu Dhabi study and UAE money
The UAE led a $3 billion funding round, Dubai has signed for a pilot Loop and Abu Dhabi has started a study. What is agreed, what is only being explored, and how Teslas fit in.
The Boring Company's biggest growth market may not be in America. In 2026, the United Arab Emirates became both its largest backer and a customer, with a Loop under contract in Dubai and a new study agreement in Abu Dhabi.
Money from the Emirates
The company raised $3 billion in a Series D funding round led by the UAE and affiliated investors, valuing it at $23 billion, according to Teslarati. As part of that deal, there is a commitment to build more than 150 km of tunnels across the UAE.
Dubai: a pilot under contract
- Route: a 6.4 km pilot line with four stations linking the DIFC financial district and Dubai Mall.
- Cost: about $154 million.
- Client: Dubai's Roads and Transport Authority.
This is the most concrete project outside the US so far.
Abu Dhabi: a study, not a build
At the LIVEX 2026 event in early October, The Boring Company's president Steve Davis signed an agreement with Abu Dhabi's projects and infrastructure centre to study tunnels for both transport and utilities across the emirate. This is an exploratory phase: no construction has been committed and no budget has been announced.
Why the Gulf
Gulf cities combine fast growth, very hot summers in which people avoid walking, and governments that can approve large infrastructure quickly. Underground transport that is air-conditioned and avoids road traffic fits that profile. For The Boring Company, a large state-backed customer provides stable funding while it proves its technology.
The Tesla link
The Loop concept uses Tesla vehicles to carry passengers, as it does in Las Vegas. A Gulf Loop network would mean Tesla cars operating in tunnels abroad, and it raises the question of whether Tesla's self-driving software will one day run them, something Tesla is already testing for its own robotaxi service in other cities.
What to watch
The start of construction in Dubai, whether the Abu Dhabi study turns into a contract, and how quickly the promised 150 km of UAE tunnels becomes real projects.
