Finance Salik values two new Dubai toll gates at $735m By Pramod Kumar August 28, 2024, 6:32 AM Wam Salik holds the right to construct, operate and maintain toll gates in Dubai until the end of June 2071 Dubai toll operator Salik has valued its two new toll gates at AED2.7 billion ($735 million), as it aims to turnaround its drop in profit during the second quarter of this year. The Business Bay gate is valued at AED2.3 billion while the Al Safa South Gate is estimated at AED469 million. The new gates, expected to be operational by the end of November, will expand the emirate’s toll gate network from 8 to 10. NewsletterGet the Best of AGBI delivered straight to your inbox every week NewsletterGet the Best of AGBI delivered straight to your inbox every week Under the concession agreement with the Road and Transport Authority (RTA), Salik holds the right to construct, operate and maintain toll gates until the end of June 2071. Salik will repay the total valuation amount for the two new gates to the RTA over six years, starting from the end of November 2024. The annual repayment will be AED455.7 million, paid in two equal installments every six months from its own financial resources, Salik said. Salik revenue rises but profit growth slows Dubai road toll revenue hits $153m as tourism flourishes Salik doubles dividend pay to $300m as revenue surges 12% The Dubai-listed toll operator expects annual revenue-generating trips to increase by 7-8 percent in 2024, up from the previous 4-6 percent guidance, supported by positive macroeconomic factors. It further anticipates its Ebitda margin to rise to 67-68 percent, compared to the earlier projection of 65-66 percent. This month, Salik’s second-quarter profits fell 2 percent year on year to AED268 million despite a 3 percent rise in revenues to AED533 million. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
