Salik Announces Valuation of Two New Toll Gates
Salik Company PJSC, Dubai's exclusive toll gate operator, has announced the financial valuation of two new toll gates and revised its financial guidance upwards.
Summary
Salik Company PJSC has announced the valuation of two new toll gates at Business Bay and Al Safa South, with a combined value of AED 2,734 million. The company has also revised its financial guidance upwards, expecting a 7-8% increase in revenue-generating trips in 2024.
Salik Company PJSC, the exclusive toll gate operator in Dubai, has made a significant announcement regarding the valuation of two new toll gates at Business Bay and Al Safa South. These new gates have been valued at a combined AED 2,734 million, with the Business Bay Gate valued at AED 2,265 million and the Al Safa South Gate valued at AED 469 million. The gates are expected to be operational by the end of November 2024, expanding Salik’s toll gate network from eight to ten.
The strategic placement of these new gates aims to optimize traffic flow and reduce congestion in alignment with the Roads and Transportation Authority (RTA)'s transportation strategy. The Business Bay Crossing on Al Khail Road and Al Safa South on Sheikh Zayed Road are positioned at key junctures to redirect vehicles to routes with higher capacity, thereby alleviating congestion. Detailed traffic impact studies have been conducted to ensure that the placement of each gate aligns with RTA's strategic goals for traffic management optimization.
Under a 49-year concession agreement with RTA, Salik has the exclusive rights to construct, operate, and maintain the toll gates until the end of June 2071. This long-term agreement underscores Salik’s commitment to sustainable growth and improving Dubai’s transport infrastructure.
Mattar Al Tayer, Chairman of the Board of Directors of Salik, commented, 'The launch of the two new gates highlights the commitment of both the Roads and Transportation Authority and Salik Company to advancing sustainable mobility solutions and improving Dubai’s transport infrastructure. These strategic investments underscore our dedication to sustainable growth and providing more seamless mobility across Dubai by enhancing travel efficiency and reducing traffic congestion. The new gates will play a crucial role in optimizing travel time and reducing congestion on some of Dubai’s busiest routes.'
In light of these developments, Salik has revised its full-year 2024 guidance, with annual revenue-generating trips expected to increase by 7-8%. This significant rise is attributed to the launch of the two new gates as well as buoyant macro-economic factors in Dubai. The company’s growth strategy to become a global leader in providing sustainable and smart mobility solutions is clearly advancing with these new additions to its toll gate network.
Given the positive outlook and strategic investments, investors may consider holding their positions in Salik. The company’s long-term concession agreement and the anticipated increase in revenue-generating trips provide a stable foundation for future growth.
Source
Summary
Salik Company PJSC, Dubai's exclusive toll gate operator, announced the financial valuation of two new toll gates at Business Bay and Al Safa South, totaling AED 2,734 million. These gates, expected to be operational by the end of November 2024, will expand Salik’s toll gate network from eight to ten, aiming to enhance traffic flow and reduce congestion in alignment with RTA's transportation strategy. Salik has revised its 2024 financial guidance upwards, projecting a 7-8% increase in annual revenue-generating trips due to the new gates and favorable economic conditions in Dubai. The new gates are part of Salik's strategy to provide sustainable and smart mobility solutions.
