Salik Company, Dubai’s tollgate operator, has updated its financial forecast, anticipating a 7-8 percent rise in revenue-generating trips in 2024.
The news was announced as two more toll gates in Business Bay and Al Safa South will start operating by the end of November, increasing the total toll gates from 8 to 10.
Salik anticipates a rise in annual revenue-generating trips due to the Business Bay and Al Safa South gates being operational, supported by Dubai’s positive macro-economic factors. The new gates are expected to start operating by the end of November 2024, and revenue impact is anticipated from the launch through the end of 2024.
In the first six months of 2024, Salik recorded 238.5 million vehicles passing through its eight toll gates, generating Dh1.1 billion in revenues, an increase of 5.6 per cent compared to the previous year. Income generated from tolls, which accounted for 87.1% of the total income, increased by 4.9% compared to the previous year, reaching Dh953.8 million.
Recently, new terms and conditions were announced stating that UAE drivers could be fined up to Dh10,000 per vehicle each year.
It was mentioned that, in the new circumstances, the maximum total fines per vehicle for breaching the Salik tolling system will be capped at Dh10,000 annually from January 1 to December 31.
The total worth of two new gates is DH2.73 billion.
On Wednesday, Salik Company announced that the total value of the two recent toll gates is Dh2.734 billion.
According to a statement released on the Dubai Financial Market website, the Business Bay Gate is worth Dh2.265 billion and the Al Safa South Gate is worth Dh469.
Salik will make payments to RTA for the two new gates for a duration of six years, commencing at the conclusion of November 2024. The yearly payment of Dh455.7 million will be divided into two equal payments of Dh227.9 million every six months, funded by the company’s own finances.
The toll booth attendant explained that the variances in valuation between Salik and the Roads and Transport Authority were no more than 5 percent.
Therefore, in accordance with the terms of the concession agreement, the final value for the two new gates was determined by averaging the two valuations, as stipulated in the concession agreement.
The opening of the two additional gates demonstrates the dedication of both the Roads and Transportation Authority and Salik Company to enhancing sustainable transportation options and enhancing Dubai’s transportation system. Mattar Al Tayer, chairman of Salik, expressed that these strategic investments demonstrate their commitment to sustainable growth and improving travel efficiency in Dubai to reduce traffic congestion.
“He mentioned that the new gates will be vital in improving travel time and decreasing congestion on a few of Dubai’s busiest roads.”
“The tolling business is flourishing for us and our main focus is to enhance our core business services while we increase our presence in Dubai,” stated Salik’s CEO Ibrahim Sultan Al Haddad.
