Dubai to Add Two New Toll Gates Next Week

Dubai’s exclusive toll gate operator Salik Company, which has announced the introduction of two new toll gates at Business Bay and Al Safa South in Dubai a few weeks ago, on Wednesday said that they will become operational from November 24.

The two new gates are valued at a total of $744.35 million, with the Business Bay Gate valued at $616.66 million and the Al Safa South Gate valued at $127.69. The opening of these two new toll gates mark continued progress for the core tolling business.

These two new gates is a key milestone and the company is pleased with the progress made in launching the new gates, with both toll gates currently under final preparation and testing phase ahead of go-live, in line with expectations.

Salik said while announcing its financial results for the third quarter and for nine months of this year in a regulatory filing with Dubai Financial Market (DFM) this morning.

Salik also expanded its ancillary revenue streams through the third quarter of 2024, with the launch of its barrier-free parking payment solution at Dubai Mall on 1 July 2024. This technology-driven initiative enhances the parking experience across the Fashion, Grand, and Cinema parking zones, in a strategic partnership with Emaar Malls to improve visitor convenience at the world-famous shopping and leisure destination.

Financial Performance

Salik continued to deliver strong financial performance during the first nine-months of 2024, registering 355.6 million revenue-generating trips, which increased 5.1% y-o-y to drive total revenue of $446.75 million.

Revenue from toll usage, comprising 86.7% of total revenue, rose 5.1% y-o-y to $387.2 million in the nine-month period, with third quarter revenue from tolls increasing 5.7% y-o-y to $127.53 million. During the nine-month period of 2024, Salik reported EBITDA of $303.57 million, up 8.9% y-o-y, and profit before tax of $245.93 million, up 12.5% y-o-y.

Salik generated net profit after tax of $223.8 million during the same period, with third quarter profit after tax increasing 8.8% y-o-y to $75.5 million.

Salik continues to offer tariff exemptions to vehicles used by charities, schools, people of determination, ambulances, and other public services, as required by laws, regulations and Concession Agreement.

The number of free-of-charge trips made by exempted vehicles in the nine-month period through Salik’s eight toll gates grew 4.1% y-o-y reaching 6 million, with the number of registered exempted vehicles up 8.5% y-o-y to reach 163,376 vehicles by the end of the nine-month period.

Robust Business Model

Salik Chairman Mattar Al Tayer said that their performance in the first nine-months of 2024 is a testament to their robust business model and commitment to enhancing mobility in Dubai.

The company made further strategic progress in the third quarter, having officially launched parking partnership with Emaar Group to provide parking solutions at Dubai Mall, a key initiative to diversify our revenue base that is already contributing positively to our financial performance.

“The launch of the two new toll gates on November 24 is a continuation of Dubai RTA’s strategic plan, aimed at enhancing road networks and facilities, public transport lines and services with the aim of improving the flow of traffic across the Emirate of Dubai, further strengthening Dubai’s position as a leading global destination,” he added.

Salik CEO Ibrahim Sultan Al Haddad said that the financial results were bolstered by strong performance in the third quarter along with very robust profitability.  With the inaugural parking solution at Dubai Mall and opening of two new toll gates, the company remain encouraged by positive trends in Dubai’s economy, which are supportive of its growth.

On this basis, Salik is pleased to reiterate its recently upgraded guidance for FY 2024, expecting revenue growth to increase by 7%-8% compared to FY23, particularly in view of Q4 typically being a seasonally stronger quarter for the company.

“We also expect this good growth momentum to continue into next year, with revenue-generating trips expected to increase in the range of 24-25% in FY25, including the contribution from the two new gates,” he added.