Business

Dubai to Introduce Variable Pricing On Its Toll Roads

Dubai’s Roads and Transport Authority (RTA) on Friday instructed Salik Company, the Emirate’s exclusive toll gate operator, and Parkin Company, the largest provider of paid public parking facilities and services in Dubai to introduce variable pricing on its toll roads to be implemented from next year.

The decision to implement variable road toll pricing and variable parking tariff policies, including event-specific parking tariffs, is part of a comprehensive strategy to enhance traffic flow in the city, by the end of January next year, Salik said in a disclosure to Dubai Financial Market this market.

However, the variable road toll pricing system, will offer motorists toll-free passage between 1 a.m. and 6 a.m., Salik said in the disclosure.

According to Salik, variable pricing aims to enhance traffic flow across Dubai’s Road networks and improve transportation efficiency across the city, based on studies conducted by the RTA that have indicated a need for implementing a variable tariff system, and allowing for tariff exemptions during certain periods.

Salik’s CEO Ibrahim Sultan Al Haddad said that the RTA studies have clearly indicated the need for the implementation of variable pricing across Dubai’s toll road network. The instruction Salik has received from the RTA, is expected to improve the travel experience of road users in Dubai, he said.

Based on initial projections, the new pricing model is expected to generate an additional revenue between $6.34 million and $60 million to $29.95 million on annual basis.

Instructions to Parkin

Parkin said that The updated provisions, effective end of March 2025, introduce variable pricing across the company’s public parking portfolio, based on the type of parking facility and whether the service is used during peak or off-peak hours, with a special rate applicable during major events.

A key aim of this dynamic approach is to optimise parking management in congested, high-density, high-demand areas, supporting efficient traffic flow throughout the city, particularly at peak times and during grand events hosted by the Emirate.

The variable parking tariff policy, scheduled for implementation by the end of March 2025, sets parking fees at $1.63 per hour for premium parking spaces and $1.09 per hour for other public paid parking spaces during morning peak hours (8 a.m. to 10 a.m.) and evening peak hours (4 p.m. to 8 p.m.).

The tariffs will remain unchanged during off-peak hours, from 10 a.m. to 4 p.m., and from 8 p.m. to 10 p.m. Parking will be free at night, from 10 p. m. to 8 a.m., and all day on Sundays.

The revised policy aims to optimise parking availability while offering flexibility and affordability to drivers based on demand, Parkin said.

Congestion pricing policy

The Congestion Pricing Policy for event areas introduces a fee of $6.81 per hour for public paid parking spaces near event zones. This policy will be rolled out initially around the Dubai World Trade Centre during major events, starting in February 2025.

Global Business Magazine

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