The toll gate operator Salik Company in Dubai has announced an increase in its revenue-generating trips by 7-8 per cent in 2024. This positive forecast comes as new toll gates in Business Bay and Al Safa South are set to be operational by the end of November this year, bringing the total toll gates in Dubai to 10. The company expects these new toll gates to have a significant impact on revenue, supported by positive macro-economic factors in the city.
In the first half of 2024, Salik saw 238.5 million vehicles pass through its existing toll gates, generating revenues of Dh1.1 billion, an increase of 5.6 per cent from the same period last year. Revenues from toll usage, which accounts for 87.1 per cent of total revenue, rose by 4.9 per cent year-on-year to Dh953.8 million. The company recently introduced new terms and conditions, including a maximum fine of Dh10,000 per vehicle annually for UAE motorists.
The combined value of the two new toll gates, Business Bay and Al Safa South, is estimated at Dh2.734 billion. Salik will pay the Roads and Transport Authority (RTA) for the gates over a six-year period, starting from the end of November 2024. The annual installment will be Dh455.7 million, to be paid from the company’s own financial resources. The valuation of the new toll gates by Salik and RTA differed by less than 5 per cent, and the average of the two valuations was adopted as the final value, in accordance with the concession agreement.
The launch of the new toll gates demonstrates the commitment of both the RTA and Salik Company to enhancing sustainable mobility solutions and improving Dubai’s transport infrastructure. Mattar Al Tayer, Chairman of Salik, emphasized the importance of sustainable growth and providing seamless mobility in Dubai by enhancing travel efficiency and reducing traffic congestion. The new toll gates are expected to play a crucial role in optimizing travel time and reducing congestion on some of Dubai’s busiest routes.
CEO Ibrahim Sultan Al Haddad stated that Salik is thriving in the tolling business and remains focused on expanding its footprint in Dubai while strengthening its core business offering. The company aims to enhance travel efficiency and reduce congestion in the city through the strategic investments in new toll gates. With the positive forecast for revenue and the expansion of toll gate operations, Salik is poised for continued growth and success in Dubai’s transport sector.
