Dubai's transport regulator is to launch a new taxi service with Careem, a ride-hailing rival to Uber in the Middle East. The emirate's Roads and Transport Authority (RTA) said the deal was the first in the world between a state transport authority and a private sector ride-hailing service, which have sometimes had testy relations with governments.

Almost 11,000 taxis will be operated by the new company, which will be 51 percent owned by the RTA and 49 percent by Careem, said a Careem spokesperson, adding that the venture could later be expanded to include buses and other forms of transportation. Uber and Careem both operate limousine services in Dubai, a city of about 3 million people, while taxis are also operated by the RTA.

Copyright Reuters, 2018