The two new Salik tollgates in Dubai, valued at AED 2.73B, will be repaid to the RTA by Salik over six years.
These tollgates, located in Business Bay and Al Safa South on Sheikh Zayed Road, will open in November, bringing the total to 10 in Dubai. The addition is expected to significantly boost Salik’s revenue and profit in 2025 and beyond.
Both locations are already heavily trafficked on weekdays and weekends.
Mattar Al Tayer, Chairman of Salik, stated that these tollgates will be crucial in improving travel times and reducing congestion on key routes.
The Business Bay tollgate is valued at AED 2.26B, and Al Safa South at AED 469M. The Al Safa South gate will be linked with the existing Al Safa North gate, allowing a single charge if commuters pass through both within an hour in the same direction.
Salik has agreed to repay the value in semi-annual instalments of AED 227.9M starting in November 2024.
CEO Ibrahim Sultan Al Haddad expressed satisfaction with their progress towards long-term goals, emphasising Salik’s growth in the tolling business and focus on expanding within Dubai.
Salik has updated its forecasts, expecting revenue-generating trips to increase by 7-8 per cent in 2024, up from previous estimates of 4-6 per cent, with an EBITDA margin of 67-68 per cent.
The RTA’s traffic impact studies ensure the new gates align with strategic traffic management goals.
Under the concession agreement, Salik holds exclusive rights to operate the tollgates until June 2071. The final valuation for the tollgates was based on an average of Salik’s and RTA’s assessments, with a difference of less than 5 per cent, reflecting their commitment to transparency and alignment in future planning.
