Page 82 - SALIK PR REPORT ENGLISH AUGUST 2024

9/2/24, 11:57 AM Al Ramz Investment Maintains an 'Overweight' Rating on Salik, Driven by Strong Growth Expectations and it's Stable Dividend Policy

Two New Toll Gates to Drive Further Growth

One of the main reasons for optimism about Salik lies in the addition of the

two new toll gates, Business Bay and Al Safa South, expected to be onstream

by the end of November, worth a combined AED 2.73 billion ($743 million),

according to a concession agreement with Dubai’s Roads and Transport

Authority (RTA). This will continue to solidify Salik’s position in the market and

complement the robust GDP growth in Dubai.

Long-term Concession and Payment Structure

Salik was granted a 49-year concession of its eight older toll gates two years

ago, just before its IPO in September 2022. Under this arrangement, the firm

will be paying annual compensation to RTA amounting to AED 455.7 million,

which would be divided into two equal installments of AED 227.9 million each

after every six months.

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