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Dubai signs massive deal with Elon Musk to build new underground transport system ‘Dubai Loop’

The ‘Dubai Loop’ project aims to create a network of tunnels across Dubai’s populated areas to reduce traffic congestion

Elon Musk Dubai Loop World Governments Summit 2025
The 'Dubai Loop' project was revealed during a video call at the World Governments Summit 2025

Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications and Vice Chair of the World Governments Summit 2025 (WGS), and Tesla CEO Elon Musk have announced plans for a new underground transport system in Dubai.

The ‘Dubai Loop’ project, revealed during a video call at the World Governments Summit 2025, aims to create a network of tunnels across Dubai’s populated areas to reduce traffic congestion, WAM said in a statement on Thursday.

Musk described the system as a “wormhole” within Dubai, enabling rapid travel between locations. He emphasised tunnels’ benefits over flying cars, citing protection from weather and noise.

Elon Musk’s Dubai Loop project promises traffic-free travel solution

During the discussion, Musk addressed government efficiency, particularly in the United States.

“I think we do need to delete entire agencies as opposed to leave a lot of them behind,” Musk said, adding “If we don’t remove the roots of the weed, then it’s easy for the weed to grow back.”

He suggested the US could save a trillion dollars through reduced bureaucracy and federal agency cuts. Musk highlighted issues with government technology systems, noting many use outdated systems that lack interconnectivity.

The tech entrepreneur also discussed his upcoming AI chatbot. “Grok 3 has very powerful reasoning capabilities, so in the tests that we’ve done thus far, Grok 3 is outperforming anything that’s been released, that we’re aware of, so that’s a good sign,” Musk said, indicating its launch within two weeks.

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