Dubai toll gate operator Salik (DFM:SALIK) has set its sights on growth beyond the Emirati city through a strategic e-payment agreement with the largest private parking company in the United Arab Emirates. Under a five-year contract, Parkonic will incorporate Salik's eWallet system into its expansive network of 107 locations.
This innovative service is anticipated to extend availability to 135,000 parking spaces by the first quarter of 2025. The revenue-sharing structure outlined in this agreement stipulates that Parkonic will compensate Salik while designating the Dubai-listed group as a preferred payment channel. There are also possibilities for the system's deployment beyond the borders of the United Arab Emirates. Salik's Chief Executive, Ibrahim Sultan Al Haddad, emphasized the numerous benefits of this collaboration, stating, "Not only will this bolster the UAE's smart city infrastructure, enabling easy, secure and quick access to parking services across the country, but it further accelerates the growth of Salik's ancillary revenues, a key component of our corporate strategy." Currently, Salik manages eight toll gates and maintains exclusivity for future toll gates in the UAE's second-largest city.
The company boasts a market capitalization of 41.78 billion Emirati dirhams as of Thursday. Despite these advancements, shares were slightly lower by midday local time..