E-Paper
Sign In
Fri, Nov 22, 2024 | Jumada al-Awwal 20, 1446 | DXB
0°C
2 new Salik gates: Company to pay Dh2.73 billion to RTA for new toll gates
The Business Bay Gate is valued at Dh2.265 billion and the Al Safa South Gate valued at Dh469 million
Photo: KT reader (Image used for illustrative purposes)
Dubai’s toll gate operator Salik Company on Wednesday revised upward its financial guidance with revenue-generating trips expected to increase 7-8 per cent in 2024.
The announcement comes as new toll gates in Business Bay and Al Safa South will be operational by the end of November this year, taking the total toll gates from 8 to 10.
“Salik expects to see an increase in annual revenue-generating trips with the operation of the Business Bay and Al Safa South gates supported by the positive macro-economic factors in Dubai. Upon their operational launch which is expected to be by the end of November 2024, the new gates are expected to generate a revenue impact from the starting date till the end of 2024,” it said.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
During the first half of 2024, Salik saw 238.5 million vehicles pass through its eight toll gates, resulting in Dh1.1 billion in revenues, up by 5.6 per cent from the same period last year. Revenues from toll usage, comprising 87.1 per cent of total revenue, rose by 4.9 per cent year-on-year to Dh953.8 million.
It recently published new terms and conditions whereby UAE motorists will face a maximum fine of Dh10,000 per vehicle annually.
Under the new conditions, the highest aggregate amount of fines related to the Salik tolling system that may be imposed per vehicle for violation shall not exceed Dh10,000 in any given calendar year from January 1 to December 31, it added.
Dh2.73 billion combined value of 2 new gates
On Wednesday, Salik Company said the combined valuation of the two new toll gates has been valued at a total of Dh2.734 billion.
In a statement published on the Dubai Financial Market website, it said the Business Bay Gate is valued at Dh2.265 billion and the Al Safa South Gate is valued at Dh469 million.
Salik will pay RTA for the two new gates over a period of six years starting from the end of November 2024. The annual instalment will be Dh455.7 million, to be paid in two equal instalments of Dh227.9 million each, every six months, which will be provided from the company's own financial resources.
The toll gate operator elaborated that the differences between the valuation by Salik and the valuation by the Roads and Transport Authority did not exceed 5 per cent.
Accordingly, as per the terms of the concession agreement, the average of the two valuations was adopted as the final value for the two new gates, in line with the concession agreement.
“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,” said Mattar Al Tayer, chairman of Salik.
“The new gates will play a crucial role in optimising travel time and reducing congestion on some of Dubai’s busiest routes,” he added.
“We are thriving in the tolling business and remain focused on strengthening our core business offering as we expand our footprint within Dubai,” said Ibrahim Sultan Al Haddad, CEO of Salik.
ALSO READ:
A Staff Reporter
Got an interesting story to tell in the UAE? We want to hear all about it. Write to the nation's best reporting team, as we cover the emirates like no one else.
Sign Up For Breaking News Alerts
Be in the know. Get the latest breaking news delivered straight to your inbox.
Next Story