Dubai's Toll Boom: Salik's Revenue Soars
Dubai's Salik Corporation Achieves Significant Revenue Growth through New Tolls and Fines
Dubai toll gate operator, Salik, achieved significant revenue growth in 2024, facilitated by the introduction of new toll gates and increased fines. The company's total revenue rose to 2.3 billion dirhams, reflecting an 8.7% increase from the previous year's 2.1 billion dirhams. Revenue from fines contributed an additional 10.3% to total revenue.
The Role of Fines in Revenue Growth
Revenue generated from fines increased by 9.3%, reaching 236.9 million dirhams in 2024. The fourth quarter saw even more pronounced growth, with fine revenue rising by 14.5% to 62.1 million dirhams. The number of net violations increased by 5.4% in the fourth quarter, totaling 730,000 violations, which accounted for 0.4% of the traffic passing through toll gates during this period. This indicates that fines not only boosted revenue but also promoted adherence to traffic regulations.
Increase in Toll Gate Usage
Revenue from toll gate usage also saw significant growth, reaching 1.99 billion dirhams in 2024, which is over an 8% increase from the previous year's 1.84 billion dirhams. This growth was partially enabled by the introduction of two new toll gates: the Business Bay gate and the Al Safa South gate, which began operations on November 24, 2024. With these additions, Dubai now operates a total of 10 toll gates.
Strategic Goals and Innovations
Salik's chairman highlighted that 2024 was a strategically successful year for the company. "Over the past year, Salik has achieved numerous strategic milestones, including the introduction of two new toll gates and the establishment of several partnerships. These partnerships support our ambition to become a global leader in sustainable and intelligent mobility solutions. Moreover, these innovative solutions contribute to enhancing road user experiences, expanding complementary revenue streams, and improving financial outcomes," he stated.
Introduction of Variable Road Fees
On January 31, 2025, Salik introduced variable road fees in Dubai. On weekdays, the charge is 6 dirhams during morning and evening peak hours (6 AM to 10 AM and 4 PM to 8 PM), while it is 4 dirhams during off-peak hours (10 AM to 4 PM and 8 PM to 1 AM). The aim of this variable pricing is to manage traffic more efficiently and reduce peak-time congestion.
Optimistic Outlook for 2025
Salik's CEO emphasized that the outstanding performance of the fourth quarter strengthened their 2024 results, with the number of revenue-generating roads increasing by 8% compared to the previous year. "We are optimistic about the positive trends in Dubai's economy that support our growth and vision," he said.
As a result, the company revised its 2025 forecast, projecting a 28-29% revenue increase compared to 2024, and expects the EBITDA margin to be between 68-69%. "In our revised forecast, we considered the effects of variable pricing and the introduction of new gates, which showed promising performance in their initial weeks of operation. Additionally, we are confident in expanding our complementary revenue sources in 2025, particularly through our successful collaboration with Emaar Malls, which resulted in an innovative, seamless parking payment solution," he added.
Success of Parking Partnership
The parking partnership between Salik and Emaar Malls also contributed to the company's revenue, generating 5.8 million dirhams in 2024. This innovative solution not only simplifies parking processes but also provides an additional revenue stream for the company.
Summary
Salik's 2024 results clearly show that the company has made significant strides not only in broadening its revenue sources but also in implementing innovative mobility solutions. Through new toll gates, variable pricing, and strategic partnerships, Salik continues to strengthen its position not just in Dubai, but in the global mobility market as well. The optimistic forecasts for 2025 suggest that the company will continue on a growth trajectory while contributing to making Dubai's transportation network more efficient and sustainable.
