Dubai: Salik Revenue Surges to Record High of Dh2.1 Billion

Asma Ahmed - | UAE

Salik, the toll gate operator in Dubai, disclosed a net profit of Dh1.098 billion in 2023. The company attributed this achievement primarily to the escalation of toll usage fees, penalties, and the activation of new tags.

While the organization experienced a 17.2% decline in net profits when compared to the preceding year, it is critical to acknowledge that direct comparisons between 2022 and 2023 might not provide an accurate depiction of the company's performance on account of alterations in its cost profile and operational framework. In a statement issued after the Board of Directors meeting, Salik's chairman, Mattar Al Tayer, provided this clarification.

The company saw consistent growth in revenue throughout 2023 as a result of the influx of visitors and people moving around Dubai. A total of 461.4 million revenue-generating trips were recorded, resulting in a revenue of Dh2.1 billion. Toll usage fee revenues saw an 11.7% year-on-year increase to Dh1.845 billion for the full year, with a corresponding 11.1% increase to Dh493 million for the fourth quarter.

The revenue from fines also displayed robust performance, with a 7.5% increase in revenue from fines for the full year 2023, amounting to Dh217 million. Additionally, fourth-quarter revenue from fines increased by 12.7% to Dh54 million. The number of net violations (accepted minus dismissed violations) grew by 9.2% to 2.6 million.

Tag activation fees experienced significant growth, both annually and quarterly, with revenue growing by 18.7% to Dh38 million in 2023 and Dh14 million in the fourth quarter, marking a 65% increase.

Furthermore, Salik announced the addition of two new gates and signed a deal with Emaar Malls to install its toll gate technology at Dubai Mall, which is expected to further enhance the company's profitability in the upcoming years.

In line with its performance, Salik's Board of Directors recommended distributing 100% of the net profit from the second half of 2023 as dividends to shareholders. Mattar Al Tayer expressed satisfaction with the company's strong performance and highlighted plans for revenue stream diversification to complement the expansion of the core tolling business. Additionally, the number of registered vehicles increased by 9% year-on-year to 4 million, with growth in active accounts exceeding 15% in 2023.

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Asma Ahmed
Asma Ahmed
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