Page 30 - SALIK PR REPORT NOVEMBER 2023

11/15/23, 5:15 PM Dubai: New Salik gates on the anvil to manage increasing traffic?

“As we speak, there is of course a need for new gates from a traffic standpoint. But the decision from
a technical perspective stays with the RTA, which studies and raises the recommendation and then it

finally goes to the Executive Council, Dubai. Once we receive an official confirmation and instruction,
we are entitled to operate eight existing gates and any future gates,” said Al Haddad.

The toll gate operator launched its initial public offering (IPO) last year, recording unprecedented
interest from investors. It raised nearly Dh3.7 billion ($1 billion) while total subscriptions reached

Dh184.2 billion ($50.2 billion). Salik stocks are also in high demand and are one of the most actively
traded stocks on the Dubai Financial Market. Trading at Dh3.16 per share on Tuesday, it is up by
nearly 60 per cent from its offering price of Dh2 a share.

It reported the highest quarterly toll usage revenue in Q2 2023 since the start of operations, recording
a 13.8 per cent increase in revenue year-on-year to a record Dh455 million.

“Today, all I can say about the new gates is that the city has the need to bring more measures (for

traffic management) and one of them is a new gate. We are having a discussion with RTA and this
can be a very detailed discussion of when and where. However, it is a mandate of the RTA because it
is one of the traffic management tools of the city. The government will make a final decision on it,” Al

Haddad said during the interview.

Traffic growth revised upward

Dubai’s roads have been witnessing a steady increase in traffic since the pandemic as more
companies and people flock to the city, attracted by its high quality of life, top-class infrastructure,
safety and better opportunities. This prompted Salik Company to revise upward its traffic growth
forecast for this year.

“Traffic is growing and we changed our traffic growth guidance for investors from 5-6 per cent
forecast to 9-10 per cent for this year after the first half of 2023 numbers. We are communicating to
the market that growth was exceeding our expectations,” he explained.

The Salik chief executive added that the company has the right tools, competency and capability to

secure any new project whenever it is approved.
https://www.zawya.com/en/legal/policy/dubai-new-salik-gates-on-the-anvil-to-manage-increasing-traffic-whxyl4pm 2/3