Salik, the Emirati operator of tollgates, has made a notable upward revision to its full-year 2024 financial guidance, driven largely by the anticipated launch of two new tollgates and the current favorable economic climate in Dubai. The company announced this update on Wednesday, reflecting its optimistic outlook for the future.
The latest projections indicate an expected increase in revenue-generating trips ranging between 7% to 8% for the year. This is a significant enhancement from Salik's previous forecast, which estimated a more modest growth of 4% to 6%. A key aspect of this updated guidance is the expansion of Salik's tollgate network, which will increase from eight to ten gates.
The two new tollgates are scheduled to commence operations by the end of November. These strategically located gates are positioned at prominent areas in Dubai: Business Bay and Al Safa South. The investment in these gates amounted to a total of 2.73 billion Emirati dirhams. Under a concession agreement with the Roads and Transport Authority, Salik holds exclusive rights to construct, operate, and maintain the new gates until June 2071.
As part of this arrangement, a repayment plan has been structured with the authority, which will see Salik paying 455.7 million dirhams annually over a six-year period for the total valuation sum. In a statement emphasizing the importance of these developments, Salik Chairman Mattar Al Tayer remarked, "These strategic investments underscore our dedication to sustainable growth and providing more seamless mobility across Dubai by enhancing travel efficiency and reducing traffic congestion.
The new gates will play a crucial role in optimizing travel time and reducing congestion on some of Dubai's busiest routes." Currently, Salik shares are priced at $3.46, reflecting a change of $+0.050, which corresponds to a percentage increase of +1.47%. Investors and stakeholders are likely to keep a close eye on the actual performance following the opening of the new tollgates as Salik positions itself as a leader in the toll operation sector within the UAE..