Skip to content Skip to Search
Skip navigation

IPO expected for Dubai road toll operator

By Andy Sambidge
Creative Commons
It costs AED4 ($1.08) to pass through the toll gate at Salik's Al Garhoud Bridge
  • Listing Salik on local stock exchange could increase liquidity
  • Dubai Electricity and Water Authority (DEWA) IPO raised $6.1bn 
  • Other IPO plans include business park operator TECOM  

Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum on Wednesday issued a new law establishing road toll operator Salik as a public joint stock company (PJSC), paving the way for a potential initial public offering (IPO). 

According to the law, Salik Company PJSC will have a term of 99 years, starting from the date of its registration in the Trade Register. 

While the ruler’s statement made no reference to an initial public offering timeframe, the move is expected to lead to an IPO, first mooted late last year.

Dubai said in November that it plans to list its automatic road toll collection system on the local stock exchange as part of an attempt to increase liquidity.

Under the new law, the Dubai Government owns all the shares of Salik Company PJSC but the Executive Council of Dubai is authorised to determine the percentage of shares that can be offered for subscription either through an IPO or private placement.

If the company’s shares are offered for subscription in a public offering or private placement, the Dubai Government should own shares worth a minimum of 60 percent of the company’s capital, it added.

Dubai has already announced IPO plans for business park operator TECOM Group after Dubai Electricity and Water Authority (DEWA) raised $6.1 billion in the largest offering in the Gulf since 2019.

Dubai’s deputy ruler, Sheikh Maktoum Bin Mohammed, in November announced plans to take 10 government-linked companies public to boost stock market activity.

Last week, Bloomberg quoted sources as saying Dubai’s Salik was planning to kick off first meetings with select top investors as soon as this month, ahead of a potential IPO.

The new law also states proceeds from toll gates, including fees and fines, will be transferred to the company, as per the concession contract signed between Roads and Transport Authority and Salik.

Existing toll gates in Dubai can be removed or modified subject to a decree while new toll gates can also be added, it noted.

Salik, Arabic for open, is an automated system introduced in 2007. Each time a vehicle passes through one of the city’s eight toll points, AED4 ($1.09) is charged to a prepaid account – eliminating the need for cash or toll booths.

Pursuant to the law, Salik is exclusively authorised to operate, manage and develop the traffic toll system in Dubai. 

The company’s board of directors will consist of a chairman and vice chairman, in addition to board members. The board serves for a period of three years.

The new law also permits the transfer of some staff from the RTA to the new entity.

Latest articles

Flooding in Dubai affected many people's homes. Emaar has promised .free repairs for its residents, and an upgraded sewerage system is planned

Emaar promises free repairs as Dubai launches sewerage system

Emaar Properties is offering free repairs to residents whose homes were damaged during this week’s extreme flooding, as Dubai also announced a AED80 billion ($22 billion) sewerage system, following a review of infrastructure ordered by the UAE president. The developer, which is listed on the Dubai stock exchange, announced on Friday it would repair all […]

A customer paying with a credit card inside the Black Friday Market in Beirut. Lebanon wants more people to move away from cash

Lebanon launches plan to promote use of bank cards

Lebanese central bank Banque du Liban announced a new agreement on Thursday that it hopes will result in a rebound in the use of bank cards. As part of the agreement, Mastercard and Visa will lower card fees on transactions, particularly for people with bank accounts based outside Lebanon. In a press release, the bank […]

Construction work in Kuwait. Nurseries, schools and shops are being built for the new residential district of Al Metlaa

Kuwait signs $140m contracts for Al Metlaa development

Kuwait’s Public Authority for Housing Welfare (PAHW) has signed two contracts worth KD42 million ($140 million) to construct public buildings in Al Metlaa, a new residential district north of Kuwait City. Nurseries, stores, schools and shops will be included, state news agency Kuna reported. Electricity connections have been provided for 109 buildings in the district, […]

Iraq gas oil

Iraq to auction 30 oil and gas projects this month

Iraq will auction 30 new oil and gas projects in two licensing rounds before the end of April. The bidding round will be held on April 27, Reuters reported, citing an oil ministry statement. Last October Iraq passed a long-awaited oil and gas law, which will help the country attract more international investments into the hydrocarbon industry and boost government revenues.  Ali Metwally, an […]