Abu Dhabi’s Lodd Autonomous, a leader in drone manufacturing and AI-driven logistics, is gearing up to launch parcel and cargo deliveries using UAVs by late next year. These services will be available at significantly reduced costs, as stated by the company’s CEO.
During an interview with Khaleej Times, Matar Al Manai, CEO of Lodd Autonomous, mentioned that a test flight is scheduled for this November, with comprehensive UAV testing set to conclude by the second quarter of 2026.
“We plan to initiate our trial operations soon after. By the third or fourth quarter of 2026, we aim to start some revenue-generating commercial activities,” he noted.
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Lodd’s premier UAV, the Hili, can transport up to 250kg over a distance of 300km at a speed of 180kmph.
Although Al Manai did not disclose the drone’s price, he remarked: “We are open to selling or leasing it, depending on buyer demand. It’s akin to the airline business model.”
The Hili drone is versatile, suitable for cargo companies, offshore deliveries for oil and gas sectors, and humanitarian efforts during disasters. Al Manai highlighted that these UAVs can function autonomously across borders without restrictions.
Lodd is advancing autonomous drones for package delivery with support from the Smart and Autonomous Systems Council (SASC) and the Abu Dhabi Investment Office (ADIO). The project is also backed by the General Civil Aviation Authority, the Integrated Transport Centre (Abu Dhabi Mobility), and logistics partner EMX.
The company, based in Kizad, Abu Dhabi, has been developing this project for over two years and can produce more than 50 drones annually.
Cost Efficiency
Regarding the economic potential of drone transport, Al Manai stressed its cost-effectiveness, describing the technology as a disruptive force that offers services at a ‘fraction of the cost’ of traditional aviation.
He also confirmed Lodd’s engagement with numerous potential clients both domestically and internationally.
The logistics industry is rapidly evolving, driven by the need for quicker, more adaptable, and resilient delivery systems. Traditional logistics often struggle with infrastructure constraints, especially when connecting primary hubs to remote areas. Lodd’s UAV technology seeks to overcome these challenges, modernizing last-mile and cross-border deliveries.
Government Support
The UAE is investing heavily in next-gen transport technologies, including passenger and cargo drones. US-based flying taxi companies Joby and Archer are also set to launch commercial passenger services in Dubai and Abu Dhabi by 2026.
The General Civil Aviation Authority (GCAA) is actively working with drone firms to establish regulatory frameworks and the required infrastructure for this burgeoning sector. Lodd is also negotiating with the regulatory body for drone approvals.
“The UAE aims for the logistics sector to contribute Dh200 billion by 2030. Our innovations heavily support this goal,” Al Manai stated.
“Positioning the UAE as an innovation hub, Lodd exemplifies how we can merge skilled talent with local expertise to produce groundbreaking technologies. This marks the UAE’s first civilian aircraft of this scale, reflecting the nation’s commitment to people, infrastructure, and industries to foster an effective innovation ecosystem,” he concluded.
