As exclusive operator Salik crafts, a new growth story with the objective of floating on the emirate’s exchange, commuters in Dubai crossing the Al Garhoud Bridge may notice a changing colour on the toll gate.
Along with the IPO, Salik also unveiled its new branding – dropping its resemblance with Road Transport and Authority’s (RTA) red theme. Only the Garhoud bridge toll gate has the new gray branding, which the company said will be rolled out in other gates “in due course.”
The company currently operates eight toll gates across Dubai – particularly placed in strategic junctures, bridges, and other high-traffic areas in the emirate.
In a press conference on Monday, its chief executive officer Ibrahim Sultan Al Haddad said the IPO takes advantage of Dubai’s growing economy, especially as private cars seem to be the most popular mode of transport for its 4.5 million daytime population.
“Salik is a truly iconic brand that provides investors with a unique opportunity to access Dubai’s exciting growth story through exposure to a high-quality infrastructure asset,” he said.
In 2021, Salik recorded a total of 481 million trips passing through its toll gates, where its revenue hit AED1.7 billion. In the first half of this year, the trips already reached 267 million, and the revenue hitting AED944.9 million.
As it aims to attract local and international investors through the Dubai Financial Market (DFM) listing, Salik also expressed its plans to invest in other sources of income, in addition to potentially installing more toll gates in the emirate.
Salik also generates income from advertising services (on toll gates and mobile application), as well as from consultancy services to governments “looking to either implement toll gates, or optimise existing operations.” It also plans to monetise the data it collects.
The business also made reference to the potential for the implementation of a “dynamic pricing strategy,” however it was not immediately clear if this would entail increasing current tariffs.
