Dubai’s toll-gate operator, Salik, reported a robust set of financial results, driven by a sharp rise in the number of registered vehicles on the city’s roads. In the first quarter of 2024, Salik witnessed a 10.7 percent increase in its net profit before tax, reaching Dh304.7 million. After accounting for the newly introduced 9 percent corporate tax in the UAE, the company’s profit after tax stood at Dh277.3 million.
The strong financial performance can be attributed to the 156 million trips that passed through Salik’s 8 toll gates between January and March 2024, marking a significant increase from the 146.9 million trips recorded during the same period last year. This surge in traffic indicates a growing number of vehicles on Dubai’s roads, contributing to Salik’s revenue growth.
With new revenue streams on the horizon, Salik is poised for an anticipated strong second half of 2024. One such initiative is the company’s alliance with Emaar Malls to operate the parking payment system at The Dubai Mall, a major retail and entertainment destination in the city.
Furthermore, Salik’s revenue is expected to receive an additional boost as the number of toll-gates under its operation increases from 8 to 10, with two key routes coming under its purview. This expansion will enable Salik to capture a larger share of the city’s vehicle traffic, further strengthening its financial position.
“We are very pleased to have started the year strongly, with revenue-generating trips increasing by over 8 per cent year-on-year, supporting our ambition to become a global leader in mobility solutions,” said Ibrahim Sultan Al Haddad, CEO
“We continue to thrive in our core tolling business and remain focused on diversifying our portfolio through the expansion of ancillary revenue streams. The first quarter marked a period of strategic progress, having announced an expansion of our toll gate network, which we plan to be operational by November of this year.
“This follows the diversification into parking management solutions through our partnership with Emaar Malls, as announced at the end of 2023. Both strategic milestones are exciting developments for our business, placing Salik in a position of strength going forward.”
The first quarter revenue totaled Dh562 million, up 8.1 per cent year-on-year. “GDP growth coupled with strong tourism inflow are evidence that the Government of Dubai’s initiatives to expand the economy, particularly focusing on population growth and maintaining the Emirate’s attractiveness to visitors, are bearing fruit,” said Mattar Al Tayer, Chairman of Salik.
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