Introduction Of Salik
Dubai’s toll gate operator, Salik Company, has announced the addition of two new toll gates, the Business Bay Gate and the Al Safa South Gate, with a combined valuation of Dh2.73 billion. This expansion comes as part of the company’s ongoing efforts to enhance Dubai’s transport infrastructure and support the city’s sustainable growth.
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Financial Impact of the New Toll Gates
The Business Bay Gate is valued at Dh2.265 billion, while the Al Safa South Gate is valued at Dh469 million. The combined valuation of Dh2.734 billion will be paid by It to the Roads and Transport Authority (RTA) over a period of six years, starting from the end of November 2024. The annual instalment of Dh455.7 million will be divided into two equal payments of Dh227.9 million each, funded from Salik’s own financial resources.
it and RTA reached the final valuation by averaging their respective assessments, which differed by less than 5%. This agreement is in line with the terms of their concession agreement.
Expected Increase in Revenue-Generating Trips
Salik has revised its financial guidance for 2024, anticipating a 7-8% increase in revenue-generating trips due to the new toll gates. The company expects these gates to contribute to its overall revenue growth, supported by Dubai’s positive macroeconomic environment.
In the first half of 2024, Salik recorded 238.5 million vehicles passing through its existing eight toll gates, generating Dh1.1 billion in revenue—a 5.6% increase from the same period last year. Toll usage revenue alone accounted for Dh953.8 million, marking a 4.9% year-on-year growth.
Commitment to Sustainable Mobility
The launch of the new toll gates aligns with Salik’s commitment to advancing sustainable mobility and enhancing Dubai’s transport infrastructure. Mattar Al Tayer, chairman of Salik, highlighted the strategic importance of these investments in improving travel efficiency and reducing traffic congestion. “The new gates will play a crucial role in optimising travel time and reducing congestion on some of Dubai’s busiest routes,” he stated.
Salik CEO, Ibrahim Sultan Al Haddad, echoed this sentiment, emphasizing the company’s focus on strengthening its core business and expanding its footprint within Dubai. “We are thriving in the tolling business and remain focused on providing seamless mobility across Dubai,” he added.
New Fines for Motorists
In addition to the new gates, Salik has updated its terms and conditions, setting a maximum annual fine of Dh10,000 per vehicle for violations related to the tolling system. This cap will be enforced from January 1 to December 31 each year, ensuring that fines do not exceed the specified amount.
Conclusion
The introduction of the Business Bay and Al Safa South toll gates marks a significant milestone for Salik and Dubai’s transport infrastructure. As these gates become operational by the end of November 2024, they are expected to enhance traffic flow, contribute to the city’s economic growth, and reinforce Salik’s position as a key player in Dubai’s tolling industry.
