Dubai’s exclusive toll gate operator, Salik Company PJSC, has announced the valuation of its upcoming toll gates at Business Bay and Al Safa South, totaling AED 2.73 billion.
The Business Bay Gate is valued at AED 2.27 billion, while the Al Safa South Gate is valued at AED 469 million.
Scheduled to begin operations by November 2024, these new gates will expand Salik’s network from eight to ten. Located on Al Khail Road and Sheikh Zayed Road, respectively, they aim to ease traffic congestion by redirecting vehicles to more efficient routes. The Roads and Transport Authority (RTA) conducted comprehensive traffic studies to ensure the gates’ strategic placement supports traffic management goals.
Under its Concession Agreement with the RTA, Salik has exclusive rights to construct, operate, and maintain these gates until June 2071.
Salik's Chairman, Mattar Al Tayer, emphasized the significance of these gates in advancing Dubai’s transport infrastructure and enhancing travel efficiency.
CEO Ibrahim Sultan Al Haddad expressed satisfaction with the company's progress towards its global mobility goals, noting that Salik remains committed to expanding its footprint in Dubai’s tolling sector.
The valuation differences between Salik and the RTA were minimal, not exceeding 5%. The average of both valuations was used to determine the final value. A six-year repayment plan has been established, with annual instalments of AED 455.7 million, divided into semi-annual payments of AED 227.9 million.
Salik anticipates a 7-8% increase in revenue-generating trips for 2024, compared to a previous forecast of 4-6%. The company expects a robust EBITDA margin of 67-68%, up from an earlier estimate of 65-66%, highlighting a positive financial outlook following the new gate operations.
News Source: Dubai Media Office
