Page 147 - SALIK PR REPORT AUGUST 2024

8/29/24, 11:06 AM Salik’s New Toll Gates Valued At AED 2.73 Billion, Set To Ease Dubai Traffic | Finance 360
estimates are based on detailed traffic impact studies conducted by Dubai’s Roads and Transport Authority

(RTA), which aim to ensure each gate’s placement aligns with the city’s strategic traffic management goals.

Mattar Al Tayer, chairman of Salik, emphasized the importance of these new installations, stating, “These

strategic investments underscore our dedication to sustainable growth and providing more seamless mobility
across Dubai by enhancing travel efficiency and reducing traffic congestion. The new gates will play a crucial

role in optimising travel time and reducing congestion on some of Dubai’s busiest routes.”

Financial Structure and Revenue Projections

Under an agreement with the RTA, Salik has exclusive rights to construct, operate, and maintain the toll gates

until the end of June 2071. To finance the AED 2.73 billion valuation of the new gates, Salik and RTA have
agreed on a six-year repayment plan starting in November 2024. The repayment will consist of annual

instalments of AED 455.7 million, divided into two equal payments of AED 227.9 million every six months.

The addition of these new gates is expected to boost Salik’s financial performance. The company has revised its

revenue-generating trip guidance for 2024, raising it to an estimated growth of 7-8%, up from the previous
forecast of 4-6%. The projected earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin

is set to remain strong at 67-68%.

Enhancing Dubai’s Infrastructure and Mobility

The introduction of the new toll gates represents Salik’s continued commitment to modernising Dubai’s
infrastructure and enhancing traffic management. Last December, the company also partnered with Emaar Malls

to implement a seamless parking management system at Dubai Mall. This initiative, which introduced paid

parking from July 1 at the mall’s Grand, Cinema, and Fashion parking areas, further highlights Salik’s role in
improving transportation and mobility within the city.

As Salik continues to expand its toll gate network and enhance its services, these developments are poised to
support Dubai’s growth as a global city while addressing the increasing demand for efficient transportation

solutions.

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