Salik Company PJSC

Salik Company PJSC, the exclusive toll gate operator in Dubai, has been directed by the Road and Transport Authority (RTA) to implement variable pricing on its toll roads by the end of January 2025. This decision is based on RTA studies aimed at improving traffic flow and transportation efficiency in Dubai. The new pricing structure will apply different rates during peak and off-peak hours, with toll-free periods past midnight. The implementation is anticipated to enhance the travel experience for road users and is projected to generate additional annual revenue of AED 60 million to AED 110 million.

Salik PJSC has informed the market that they received a letter from the Roads and Transport Authority (RTA) regarding the implementation of a variable pricing system for road tolls. The new pricing will differentiate between peak and off-peak hours on weekdays and Sundays, excluding public holidays and events. The toll fee during peak hours (6:00 AM to 10:00 AM and 4:00 PM to 8:00 PM) will be AED 6, while off-peak hours (10:00 AM to 4:00 PM and 8:00 PM to 1:00 AM) will cost AED 4. Tolls will be free past midnight (1:00 AM to 6:00 AM). The variable pricing is expected to be implemented by the end of January 2025, with more details to be provided in a future press release. The notification was signed by Ibrahim Sultan Al Haddad, the CEO.

Salik, the exclusive toll gate operator in Dubai, has partnered with Parkonic, the largest private parking operator in the UAE, to integrate its eWallet system across Parkonic's 107 locations in the UAE, marking Salik's first expansion beyond Dubai. This five-year contract aims to enhance parking payment solutions, contributing to the UAE's smart city infrastructure by offering seamless and secure access to parking services. Salik will receive a percentage of parking fees through its eWallet, supporting its ancillary revenue growth. The solution is expected to be available for approximately 135,000 parking spaces by the first quarter of 2025. Both companies emphasize their commitment to innovation and improving urban mobility, aligning their technologies to support the UAE's smart city goals.

Salik Company PJSC, the exclusive toll gate operator in Dubai, has achieved the ISO 37301:2021 certification for Compliance Management Systems. This certification reflects Salik's commitment to adhering to laws and regulations set by the Securities and Commodities Authority, the Dubai Financial Market, and UAE's Federal Decree-law 32/2021. The achievement enhances Salik's reputation and boosts investor confidence, reinforcing its position as a leader in compliance management in the UAE. CEO Ibrahim Sultan Al Haddad emphasized the company's dedication to efficiency, transparency, and responsible business practices. Established as a public joint stock company in June 2022, Salik operates eight toll gates in Dubai, recording 593 million journeys in 2023. The company holds a 49-year concession agreement with the Roads and Transport Authority to manage toll gates in Dubai.

Salik Company PJSC, Dubai’s exclusive toll gate operator, reported a 12.5% increase in profit before tax for the first nine months of 2024, reaching AED 903.3 million. The company’s revenue for this period was AED 1,640.9 million, a 6.2% year-on-year increase, supported by a positive macroeconomic environment and tourism trends. Revenue-generating trips totaled 355.6 million, up 5.1% year-on-year. Net profit after tax rose 2.4% year-on-year to AED 822.0 million, despite the new 9% UAE corporate tax. Salik expects revenue-generating trips to increase by 24-25% in 2025, following the launch of two new toll gates and a parking partnership with Emaar at Dubai Mall. The company maintains its guidance for a 7-8% revenue growth in 2024, anticipating a strong fourth quarter.

Salik Company PJSC, the exclusive toll gate operator in Dubai, has formed a strategic partnership with Liva, a leading insurer in the GCC, to provide customized vehicle insurance solutions in the UAE. This collaboration aims to enhance convenience in the insurance renewal process and raise awareness about the importance of timely renewals. The partnership will utilize Salik's database to send reminders to customers about insurance coverage and vehicle registration renewals, directing them to a Liva-managed portal for easy policy renewals. This initiative is part of Salik's strategy to expand its ancillary revenue streams and establish itself as a leader in sustainable mobility solutions. The partnership, effective from the end of November, is expected to benefit Salik customers with advanced digital insurance services, aligning with the future development of Dubai. Salik's CEO, Ibrahim Haddad, emphasized the goal of providing innovative and convenient services to enhance customer satisfaction and support the company's growth beyond its core tolling business.

The Board of Directors meeting for Salik Company PJSC has been postponed to Friday, November 15, 2024, at 8:00 am. Despite the postponement, the interim financial statements for the period ending September 30, 2024, will still be issued on November 13, 2024.