Page 27 - SALIK PR REPORT - MARCH 2024

3/29/24, 10:34 AM Dubai Salik unveils growth strategy, diversifying revenue beyond tolls
“We’ve maintained very healthy EBITDA and net income margins to deliver net income of almost AED
1.1 billion – 100 percent of which we will distribute to shareholders having already paid a dividend for
the first half of 2023 and having confirmed our final dividend for the year,” he said.

Looking ahead, the company aims to diversify its revenue streams beyond toll usage fees and fines.

Al Haddad revealed plans to explore ancillary revenue opportunities, exemplified by a recent
collaboration with Emaar Malls for private parking fee collection at Dubai Mall.

Excerpts from the interview:

Can you provide insights into Salik's plans for revenue diversification and growth in 2024?

Salik’s revenue model currently consists of toll usage fees and fines. However, going forward, we are

actively looking to diversify our revenues into ancillary revenue-generating opportunities, and this is a
key component of our updated corporate strategy. Our agreement with Emaar Malls for private
parking fee collection system is a testament of our commitment to diversify our revenue streams from
the core tolling business.

When it comes to the core tolling business, we are very encouraged by positive macroeconomic and

population trends in Dubai, and we expect revenue-generating trips in 2024 to increase in the range
of 4-6 percent, a continuation of the strong growth momentum seen in 2023. We also expect to
achieve a healthy EBITDA margin in the range of 65-66 percent, as we pursue strategic growth
objectives across our core business.

It should also be noted that earlier this year we announced the addition of two new Salik gates to the
Dubai roads network, which will be operational by the end of 2024. It is too soon to forecast the
financial impact of these gates, but we expect to provide guidance on how they’ll contribute to our
revenue base in due course. This will bring the total number of Salik gates from eight to 10.

Can you elaborate on the partnership with Emaar Malls for managing parking at Dubai Mall?

Our cooperation with Emaar Malls will provide Dubai Mall with a convenient parking fee collection

system that will deliver a seamless, smooth and barrier-less experience to customers. The project
currently covers only Dubai Mall, but if Emaar Malls or other partners see a need for the solution in
other locations, then we would be pleased to extend the service through new agreements.

This cooperation clearly aligns with Salik’s strategy of providing seamless, sustainable, and smart

mobility solutions and delivers on our objectives to diversify into complementary business streams.

Is Salik considering market expansion beyond its current toll gates, either within Dubai or
regionally?

As part of our strategy to thrive in the tolling business, we will consider the expansion of our core
tolling solutions business to other geographies. This is a medium and long-term aspiration for Salik’s

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