Page 94 - SALIK PR REPORT SEPTEMBER 2024

How will Salik finance the two new gaAtes and

what are the associated costs?
Al Haddad said agreement has been reached with RTA on a repayment plan
for the total valuation amount for the two new gates over a period of six years
starting from the end of November 2024.
The annual instalment will be Dh455.7 million, to be paid in two equal
instalments of Dh227.9 million each, every six months, which will be provided
from the company's own financial resources.
Al Haddad revealed the total construction cost for both Salik gates is around
Dh65 million. “Since these gates are RTA assets, they will reimburse us for
construction on a cost + 10 per cent basis,” he added.

What is the combined valuation of the two new
gates?

The Salik CEO said the combined valuation for the two new gates came in
at Dh2.73 billion, of which the Business Bay gate was valued at around Dh2.27
billion and the Al Safa gate at Dh469 million.
Al Haddad also talked about Salik’s main growth drivers, underscoring the
company’s “solid results during the first half of 2024, where there was a 4.9
per cent increase in revenue-generating trips compared to the same period
last year, reaching a total of 238.5 million.
“This growth, coupled with a 5.6 per cent increase in total revenue to Dh1.1
billion, is a testament to the continued demand for our services. Most of our
revenue growth, about 87 per cent, which is up 4.9 per cent year-on-year, was
from toll usage. This reflects growing traffic volumes on Dubai’s roads, which
is an indicator of the city's increased economic activity. Additionally, we saw a
7.4 per cent increase in revenue from fines.
“The government’s focus on human well-being and its ambitious plans for
urban innovation and sustainability have created a favourable environment
for businesses and residents,” Al Haddad underscored, adding “This, in turn,
has led to increased traffic and higher demand for our services. Dubai’s status
as a central commercial and tourism hub has also been a major factor in our
success.”

Expected road congestion reduction
Business Bay Crossing gate will reduce traffic by:

• 12 to 15 per cent on Al Khail Road

• 10 to 16 per cent on Al Rabat Street
Al Safa South gate:

https://www.khaleejtimes.com/uae/transport/dubai-2-salik-gates-to-be-new-solar-powered-to-
reduce-traffic-congestion-across-key-roads