Salik Company PJSC, Dubai’s toll gate operator, has seen a significant increase in revenue and vehicle numbers for the first half of 2024. With 238.5 million vehicles passing through its eight toll gates from January to June, Salik managed to generate Dh1.1 billion in revenue, up by 5.6% from the same period last year. The revenue from toll usage accounted for 87.1% of the total revenue, reaching Dh953.8 million, a 4.9% increase year-on-year.
In the first three months of 2024, Salik reported a revenue of Dh562 million, which slightly dropped in the second quarter to Dh532.7 million, but still showing a 3.1% increase compared to Q2 2023. The company achieved a net profit of Dh267.5 million for the second quarter and a total profit of Dh544.8 million for the first half of the year. In light of these strong financial results, Salik announced the distribution of interim cash dividends of Dh544.8 million, equivalent to 7.263 fils per share, payable on September 5.
Salik’s chairman, Mattar Al Tayer, highlighted the company’s focus on expanding their core tolling business and diversifying revenue streams through new strategic initiatives. The addition of two new toll gates and a recent partnership with Emaar Malls for parking solutions demonstrate Salik’s commitment to growth and diversification. The company also introduced a barrier-free system at Dubai Mall’s paid parking areas, further expanding its revenue stream.
The number of registered vehicles with Salik tags has increased to 4.2 million, up by 8.8% from H1 2023. Additionally, registered active accounts have grown by 14.6% year-on-year, reaching around 2.5 million. Salik continues to offer tariff exemptions for vehicles used by charities, schools, people of determination, ambulances, and other public services, with around 2 million free-of-charge trips made by exempted vehicles through its toll gates.
Salik’s revenue-generating trips in the second quarter of 2024 reached 115.7 million, reflecting a 1.6% increase compared to Q2 2023. Salik CEO Ibrahim Sultan Al Haddad emphasized the company’s strategic efforts to meet the increasing demand for efficient transportation in Dubai, which continues to attract international visitors and new residents. Salik plays a crucial role in making Dubai one of the most accessible cities globally.
Looking ahead, Salik plans to revise its financial guidance for the 2024 fiscal year, taking into account the positive impact of the new toll gates and the assumption that the Floating Bridge will remain closed until year-end. The company will also assess the revenue generated from collecting parking fees at Dubai Mall and the impact of the 2.5% reduction in the RTA concession fee implemented in April 2024. These initiatives and partnerships are expected to further contribute to Salik’s growth and revenue in the coming months.
