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Abu Dhabi Company Lodd to Begin Drone Cargo Deliveries Next Year

Abu Dhabi’s Lodd to Launch Drone Cargo Deliveries Amid Regulatory and Market Challenges
Abu Dhabi-based drone manufacturer and AI-driven logistics firm Lodd Autonomous has announced plans to commence parcel and cargo deliveries using unmanned aerial vehicles (UAVs) by the latter half of next year. The company aims to provide these services at a significantly lower cost compared to traditional transportation methods, according to CEO Matar Al Manai.
Development Timeline and Operational Plans
In a recent interview, Al Manai disclosed that a test flight is scheduled for November, with comprehensive UAV testing expected to conclude by the second quarter of 2026. Following this, Lodd intends to initiate experimental operations, with revenue-generating commercial activities projected to begin in the third or fourth quarter of 2026.
Lodd’s flagship UAV, named the Hili, is engineered to carry payloads of up to 250 kilograms over distances of 300 kilometers at speeds reaching 180 kilometers per hour. While specific pricing details have not been revealed, Al Manai indicated that the company is considering both sales and leasing models, drawing comparisons to the flexible business approaches seen in the airline industry. The Hili drone is designed for a variety of applications, including cargo transport, offshore deliveries for oil and gas companies, and humanitarian aid during natural disasters. Notably, these UAVs are built to operate autonomously across borders without geographic restrictions.
The initiative is supported by several key entities, including the Smart and Autonomous Systems Council (SASC), the Abu Dhabi Investment Office (ADIO), the General Civil Aviation Authority (GCAA), the Integrated Transport Centre (Abu Dhabi Mobility), and logistics partner EMX. Based in Kizad, Abu Dhabi, Lodd has been developing this project for over two years and currently has the capacity to manufacture more than 50 aircraft annually.
Cost Efficiency and Market Dynamics
Al Manai highlighted the economic benefits of drone-based transport, emphasizing that the technology will enable delivery services at a fraction of the cost associated with current aviation methods. Lodd is actively engaging with potential clients both within the UAE and internationally. However, the broader drone delivery sector continues to face significant challenges, including regulatory complexities, high operational expenses, and stiff competition from established global players such as Amazon and DoorDash.
Although drone delivery is gaining momentum worldwide, recent data indicates that it remains an expensive proposition and is subject to stringent regulatory scrutiny, particularly in markets like the United States where adoption has been cautious. Competitors in the sector are expected to leverage existing infrastructure and strategic partnerships to maintain their market positions as new entrants like Lodd seek to establish themselves.
The logistics industry is undergoing rapid transformation, driven by increasing demand for faster, more flexible, and resilient delivery systems. Traditional logistics networks often encounter infrastructure bottlenecks, especially when connecting major hubs to remote or regional locations. Lodd’s UAV technology aims to address these challenges by modernizing last-mile and cross-border delivery solutions.
Government Support and Regulatory Landscape
The UAE continues to invest heavily in next-generation transportation technologies, encompassing both passenger and cargo drone services. U.S.-based flying taxi companies Joby and Archer are also preparing to launch commercial passenger operations in Dubai and Abu Dhabi by 2026. The General Civil Aviation Authority is actively collaborating with drone companies to develop regulatory frameworks and infrastructure to support this emerging sector. Lodd is currently engaged in discussions with the regulator to secure the necessary approvals for its drone operations.
The UAE has set ambitious goals for its logistics sector, targeting a contribution of Dh200 billion by 2030. Lodd’s drone delivery initiative is positioned as a strategic component in realizing this vision, despite the regulatory and market challenges that lie ahead.

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