Abu Dhabi Firm Lodd To Launch Drone-Based Cargo Deliveries Next Year

Abu Dhabi-based drone manufacturer and AI-driven logistics firm Lodd Autonomous is set to begin parcel and cargo deliveries using unmanned aerial vehicles (UAVs) by the second half of next year, offering services at a“fraction of the cost,” according to its chief executive.

In an interview with Khaleej Times, Rashid Matar Al Manai , CEO of Lodd Autonomous, said a test flight is scheduled for November, with full UAV testing expected to be completed by the second quarter of 2026.

“Then we will start our experimental operation. By Q3 or Q4 of 2026, we will start some revenue-making commercial operational activities,” he said.

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Lodd's flagship UAV, Hili , is capable of carrying up to 250kg over a range of 300km at a speed of 180kmph.

While Al Manai declined to reveal the drone's price, he noted:“We are open to sell it or lease it, whatever makes sense and depending on the buyer demand. It's similar to the airline business model.”

The Hili drone is designed for a variety of applications - including use by cargo companies , offshore deliveries for oil and gas firms, and humanitarian missions during natural disasters. Al Manai added that the UAVs can also operate autonomously across borders without limitations.

Lodd is developing autonomous drones for parcel delivery with backing from the Smart and Autonomous Systems Council (SASC) and the Abu Dhabi Investment Office (ADIO). The initiative is also supported by the General Civil Aviation Authority , the Integrated Transport Centre (Abu Dhabi Mobility) , and logistics partner EMX .

The company has been working on the project for more than two years in Kizad, Abu Dhabi. It has the capacity to build more than 50 aircraft per year.

When asked about the economic viability of drone-based transport, Al Manai emphasised its affordability, saying this disruptive technology will be at a 'fraction of the cost' of the current aviation transport cost.

He also confirmed that Lodd is in talks with numerous potential clients both within and outside the UAE.

The logistics sector is undergoing rapid transformation, driven by growing demand for faster, more flexible, and resilient delivery systems. Traditional logistics often face limitations due to infrastructure bottlenecks - particularly when linking major hubs to remote or regional locations. Lodd's UAV technology aims to bridge that gap and modernise last-mile and cross-border delivery.

The UAE continues to invest heavily in next-generation transport technologies, including both passenger and cargo drone services. US-based flying taxi firms Joby and Archer are also preparing to launch commercial passenger services in Dubai and Abu Dhabi by 2026.

The General Civil Aviation Authority (GCAA) is actively collaborating with drone companies to develop regulatory frameworks and the necessary infrastructure to support this emerging sector. Lodd is also in talks with the regulator for approval of the drones.

“The UAE has set a target that by 2031, it wants the logistics sector's contribution to reach Dh200 billion by 2030. With this solution, we are contributing heavily to that," Al Manai said.

"In regard to establishing the UAE as an innovation hub, Lodd is a great example of how we can bring highly-skilled people and combine them with local expertise to produce new technologies.

This is the first civilian aircraft ever built in the UAE at this scale.
This is the result of UAE efforts to invest in people, infrastructure, and factories to bring an effective ecosystem to make sure that this innovation hub has been established,” he concluded.

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