SALIK COMPANY P.J.
SALIK
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Salik Expands Dubai's Toll Network with AED 2.7B Investment in New Gates
Salik invests AED 2.7B in two new Dubai toll gates to boost traffic flow and infrastructure by 2024.
August 29, 2024 at 2:03:00 PMScore: 88

Dubai’s Salik Company has unveiled two new toll gates—Business Bay and Al Safa South—with a combined valuation of AED 2.73 billion. The Business Bay Gate accounts for AED 2.26 billion, while Al Safa South totals AED 469 million. Slated for operation by November 2024, these additions will expand Dubai’s toll network from eight to 10 gates, aiming to streamline traffic flow and reduce congestion on busy routes. The Roads and Transportation Authority (RTA) confirmed alignment with strategic traffic management goals through rigorous impact studies. Under a concession agreement, Salik retains exclusive rights to operate the gates until June 2071. Chairman Mattar Al Tayer emphasized the project’s role in advancing sustainable mobility, while CEO Ibrahim Sultan Al Haddad highlighted progress toward global leadership in mobility solutions. The AED 2.73 billion valuation will be repaid over six years via biannual installments of AED 227.90 million starting November 2024.
Recommended Actions
- Consider holding Salik stock for long-term infrastructure gains
- Monitor traffic impact reports for operational effectiveness
- Track repayment schedule adherence for financial stability
- Evaluate potential dividend increases from new revenue
- Avoid short-term trading due to multi-year implementation phase
Positive Aspects
- Enhanced traffic management boosting operational efficiency
- Long-term revenue streams from toll operations until 2071
- Alignment with Dubai’s smart city and sustainability objectives
Negative Aspects
- Six-year debt repayment plan may strain short-term liquidity
- Potential construction delays could impact projected timelines