Elon Musk’s The Boring Company plans to build more than 150 kilometres of tunnels across the UAE as part of an expanded partnership with the country. The plan was announced alongside a $3 billion Series D funding round, equivalent to about AED 11 billion, involving UAE and UAE-linked investment entities.

The funding round raised The Boring Company’s valuation to $23 billion and builds on its existing partnership with the UAE through the Dubai Loop project. The company said the new agreement to develop more than 150 kilometres of tunnels is separate from the Dubai Loop project previously awarded to it.

The first phase of the Dubai Loop will feature a 6.4-kilometre pilot route with four stations connecting the Dubai International Financial Centre, or DIFC, with Dubai Mall. The stations will be located at Burj Khalifa, DIFC 2, Dubai Mall Zabeel parking and ICD Brookfield Place.

The Boring Company announced in July that production had begun on precast concrete components for the first phase of the Dubai Loop. According to the company, the tunnel in this phase will have a total weight of about 100 million pounds.

The first phase will use 25,000 concrete segments, each weighing about 4,000 pounds.

UAE investors participating in the funding round include Shamal Holding, a Dubai-based global investment company that confirmed it had acquired an equity stake in The Boring Company through the financing.

Human Capital, Vy Capital, Valor Equity Partners, Sequoia Capital, A16Z, Temasek and Baron Capital also participated in the funding round, alongside several other new and existing investors.

Shamal Holding stressed that its investment in The Boring Company is separate from the government agreement relating to the Dubai Loop project. It said the transaction represents a private commercial investment in The Boring Company itself, based on its capabilities and business fundamentals, and is not tied to any specific project.

“This is an investment in a company, not a specific project; a private, commercial investment based on the fundamentals of a business whose technology could have applications for cities around the world,” Shamal said in a statement.

The company also emphasised that the investment is “separate and independent from the government-level agreement between Dubai’s Roads and Transport Authority, RTA, and The Boring Company”. The RTA signed an agreement with the company in February 2026 to implement the Dubai Loop project.

According to the information provided, The Boring Company’s Loop system has transported more than four million passengers through 11 stations in Las Vegas since 2021. The company is now advancing projects across several markets worldwide.

Shamal Holding said one reason for investing in The Boring Company was that its technology had moved beyond the proof-of-concept stage and into operation following the success of the Las Vegas Loop.

The company added that the investment was in line with Shamal’s strategy of backing pioneering and transformative businesses worldwide. Shamal said its Dubai base also gives it deeper insight into The Boring Company’s technological capabilities through the Dubai Loop project, while the technology’s deployment in Dubai could deliver direct benefits to the city.

Shahnawaz Nawabi, Chief Investment Officer at Shamal Holding, said The Boring Company combines engineering expertise with a practical approach to urban mobility and operates in a sector that Shamal believes has significant potential for sustainable growth.

Steve Davis, President of The Boring Company, said: “We look forward to strengthening our relationship with Shamal, an experienced global technology investor with a deep understanding of Dubai and a track record of supporting bold, transformative initiatives that have helped shape the future.”

The Boring Company said that over the past two years, it had expanded from operating a single Loop system to pursuing a multi-city tunnelling programme. The expansion includes developing faster tunnel-boring machinery, carrying out its first project in hard rock, securing its first international construction contract and significantly expanding the Vegas Loop network.

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