Elon Musk's Boring Company to build 150+ km of tunnels across the UAE

Elon Musk's The Boring Company will build more than 150 kilometres of transport tunnels across the United Arab Emirates. The company announced the plan after closing a $3 billion Series D round led by UAE investors, which values it at $23 billion — roughly four times the $5.7 billion valuation after its 2022 round.

The new agreement is separate from, and in addition to, the previously awarded Dubai Loop contract. This is no longer about a single pilot route in the business district, but about tunnels across the country.

Who invested

The round was led by UAE entities, with participation from Shamal Holding, Human Capital, Vy Capital, Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Temasek and Baron Capital. The Boring Company said the investment builds on its collaboration with the UAE on Dubai Loop and will accelerate the deployment of underground infrastructure across the Emirates, including 150-plus kilometres of tunnel.

One caveat: according to MEED, the 150 km figure is an ambition of the partnership rather than a contracted volume. Most of the network has yet to be tendered, designed or awarded, and routes, emirates and timelines have not been disclosed.

Dubai Loop: what is already under way

The agreement with Dubai's Roads and Transport Authority (RTA) was signed at the World Governments Summit in February 2026. The pilot phase covers 6.4 km of tunnel and four stations:

• Burj Khalifa;
• DIFC 2;
• Zabeel Dubai Mall Parking;
• ICD Brookfield Place.

Phase one costs about AED 565 million (around $154 million). The trip between DIFC and Dubai Mall will drop from up to 20 minutes to three, with capacity of more than 13,000 passengers a day.

The full Dubai Loop will extend to 22.2 km and 19 stations, linking Dubai World Trade Centre, DIFC and Business Bay, at a combined budget of about AED 2 billion ($545 million) and up to 30,000 passengers a day. US firm Parsons was appointed programme manager in May. Tunnel segment production is already under way, boring is due to start in late 2026, and opening is expected in 2028.

How the system works

Loop is not a metro. The tunnels are 3.6 metres in diameter and carry Tesla electric vehicles rather than trains, taking passengers directly to their destination station without intermediate stops. Smaller tunnels are cheaper and faster to bore, and compact stations fit more easily into dense districts. Las Vegas Loop has operated since 2021 and carried more than four million passengers; construction began in Nashville this year.

What it means for real estate

Transport access is one of the main drivers of property prices. Dubai Metro has shown that homes and offices within walking distance of stations sell and rent at a premium. DIFC, Downtown Dubai and Business Bay stand to benefit first from Dubai Loop. Once routes for the wider 150 km network are published, future station locations will be the ones to watch — though investors should base decisions on official RTA plans rather than headline ambitions.

Bottom line

A UAE-led $3 billion round and a 150 km tunnel ambition make the Emirates the largest market for Musk's tunnelling technology outside the United States. Dubai Loop is due to open in 2028, while the wider network sets the direction for the country's transport and property market over the next decade.