Page 46 - SALIK PR REPORT JANUARY 2024
P. 46
future solutions, and its application depends on the results of the transportation
strategy carried out by the authority…”
The variable pricing could mean higher prices during peak hour and varied costs for
the type of vehicle, as is the case in cities like London. It could also mean lower fees
during off-peak hours.
The RTA has not provided further information on what the proposed system could
entail.
Such costs are expected to deter motorists from driving during rush hour, and rather
opting for alternate means of transportation or commuting in personal vehicles when
the roads are emptier.
For instance, neighboring UAE capital city Abu Dhabi also activated an automated toll
gate system, Darb, in 2021.
Like Salik, Darb charges ($1.09) AED 4 per passing. Unlike the Dubai toll, it charges
during peak hour – from 7 a.m. to 9 a.m. and 5 p.m. to 7 p.m. from Monday to
Saturday. No toll is collected on Sundays and public holidays, and during off-peak
hours.
There are currently eight toll gates in operation in Dubai – Al Barsha, Al Garhoud
Bridge, Al Maktoum Bridge (free to use on Sunday and between 10pm and 6am on
other days), Al Mamzar South and Al Mamzar North (charged once if passing within a
one hour window), Al Safa, Airport Tunnel, and Jebel Ali.
The first of the newly announced gates will be installed at the Business Bay Crossing
on Al Khail Road and another, Al Safa South toll, between Al Meydan and Umm Al
Sheif Street. Al Khail Road is widely used by motorists to avoid the numerous toll
gates on Sheikh Zayed Road, which was recently renamed to Burj Khalifa.
Dubai’s RTA said the move was to streamline traffic, which has skyrocketed following
a rise in the population of the country. Dubai, and the wider UAE, experienced a rapid
increase in the number of expats from 2021 after the Russia-Ukraine war broke out.
The availability of long-term visas is also thought to have enticed expats to call the
Gulf city, home, in addition to the strong economy on the back of a thriving tourism
sector and uptick in oil prices post-COVID.
Last year, RTA raised $1 billion from the listing of Salik Co. on the Dubai Financial
Market, and has been among the best performer out of the city’s privatizations.
Over 3.6 million vehicles are registered on the system which was introduced in 2007.
It achieved a net profit of $218 million (AED 803 million) in the first nine months of
2023 with profit margin of 51.9 percent, according to information shared by Salik.
https://english.alarabiya.net/business/markets/2024/01/23/New-toll-gates-reports-of-flexible-pricing-
send-Salik-shares-up-on-Dubai-market