Dubai: Will Salik Implement Higher Pricing to Ease Traffic?

Dubai's toll gate system could soon feature dynamic pricing to tackle traffic congestion, according to Ibrahim Alhaddad, CEO of Salik.

In a recent statement, Alhaddad highlighted that the current Dh4 toll rate has lost its effectiveness in managing traffic flow.

"Dynamic pricing could be introduced to adjust toll rates based on the time of day,"

Alhaddad explained.

"This approach might include exemptions during off-peak hours and higher charges during peak times."

Although the Roads and Transport Authority (RTA) had previously mentioned the potential for dynamic pricing, no specific timeline for implementation was provided.

Salik, in its IPO announcement, indicated that this new pricing model could help reduce congestion by charging higher fees during busy periods. This system, which is already in place in many major cities globally, would aim to optimize toll rates to manage traffic more efficiently.

During an Investor Conference Call, Maged Ibrahim, CFO of Salik, addressed concerns about the impact of the unprecedented rainfall in April 2024. He reassured that Salik's infrastructure remained intact and that toll gates operated normally. Ibrahim noted that the surge in demand following the storm mitigated some of the losses incurred during the brief disruption, and traffic patterns returned to normal after the Eid break.

Salik will review the details and financial implications of the dynamic pricing proposal before seeking approval from the Dubai Executive Council.

News Source: Khaleej Times