Salik CEO Discusses Need for New Toll Gates and Traffic Management

Ibrahim Al Haddad, CEO of Salik Company, emphasizes the importance of Salik toll gates in managing the city’s traffic, highlighting their significant role.

While acknowledging the need for new toll gates from a traffic perspective, Al Haddad underlines that the decision to install new gates rests with the Roads and Transport Authority (RTA) in Dubai and requires approval from the Executive Council of Dubai.

Introduction and Purpose of Toll Gates:

Toll gates were introduced by the RTA in 2007 to enhance traffic management and create new revenue sources for the government. 

Currently, eight toll gates are in operation, primarily on major corridors like Sheikh Zayed Road.

Salik Gates has seen a surge in usage, recording 293 million trips in the first half of 2022, an increase of 9.8%. Each trip through a toll gate costs four dirhams. 

In Q2 2023, Salik reported its highest quarterly toll usage revenue, a 13.8% increase YoY, reaching a record Dh455 million.

Salik’s Successful IPO:

Salik Company launched an IPO last year, raising nearly Dh3.7 billion ($1 billion), with total subscriptions reaching Dh184.2 billion ($50.2 billion). 

Salik stocks have performed well, trading at Dh3.16 per share, up by nearly 60% from its offering price of Dh2 per share.

While acknowledging the need for new toll gates, the final decision lies with the government and the RTA. 

Al Haddad mentioned ongoing discussions with the RTA about when and where to install new gates, considering the city’s traffic management needs.

Revised Traffic Growth Forecast:

Salik has revised its traffic growth forecast for investors due to the steady increase in traffic in Dubai. They anticipate a 9-10% growth this year, reflecting the city’s attractiveness to companies and individuals.

As part of sustainability initiatives, Salik has exempted electric vehicles from tag prices and adopted a paperless strategy. 

The company also plans to expand the use of solar panels for energy supply.