Salik to launch two new gates in Dubai by November, boosting revenue forecast
Date
8/29/2024 8:42:58 AM
(MENAFN) Salik, the sole operator of toll gates in Dubai, is set to expand its network with the addition of two new gates at the Business Bay and South Safa crossings, scheduled to commence operations by the end of November. This expansion will bring the total number of Salik's toll gates to ten. According to a disclosure made to the Dubai Stock Exchange on Wednesday, the company's board of directors has approved the final valuation for these new gates, totaling AED 2.734 billion (approximately USD744 million). The Business Bay Gate, located on Al Khail Road, is valued at AED 2.265 billion, while the South Al Safa Gate on Sheikh Zayed Road is valued at AED 469 million.
In light of this development, Salik has revised its financial projections upward for the current year. The company now anticipates a 7-8 percent increase in revenue-generating trips in 2024, a notable adjustment from previous estimates of 4-6 percent. This optimistic outlook is attributed to the anticipated revenue impact from the new gates and the overall economic boom in Dubai. The company stated that the new gates are expected to positively influence revenues from the start of their operations through the end of 2024.
Salik has reached an agreement with the Roads and Transport Authority (RTA) of Dubai regarding the payment for the new gates. The total assessment amount will be paid over six years, commencing at the end of November 2024. The annual installment is set at AED 455.7 million, to be paid in two equal semi-annual installments of AED 227.9 million each. These payments will be funded from Salik's own financial resources. Under the concession agreement with the RTA, Salik holds exclusive rights to build, operate, and maintain existing and new toll gates until June 2071.
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