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Dubai-based Salik is in a strong position to go international thanks to its position as the exclusive road toll operator in the emirate, its board chairman announced at a press conference today.
In translated remarks at today’s Salik IPO announcement, Mattar Al Tayer attributed the company’s success to its place in Dubai’s infrastructure, which has given it a good reputation.
“The power with this company is being the exclusive operator in Dubai,” he said. “Salik is the exclusive operator and this provides a kind of power and support for the company, and its experience in its field and of course the good reputation that was built by it with regards to having the infrastructure.”
He added: “The infrastructure is extremely strong; Salik is a key part of the infrastructure of Dubai. This gives a very good reputation for Salik if we have any requirements for the countries around the region or even internationally.”
Salik’s future performance is expected to be driven by multiple layers of growth, which represent an upside to the current business, which include consulting services to governments looking to implement toll gates, or optimise existing operations, it said in a statement.
Other sources of growth include addition of new toll gates, advertising services on toll gates and on the Salik app and monetising unique traffic data and insights.
Al Tayer said earlier in the conference that the decision on whether to increase the number of toll gates, currently at eight, along Dubai’s main thoroughfare Sheikh Zayed Road, or increase charges, was dependent on research by the RTA.
CEO Ibrahim Sultan Al Haddad added that the toll gate system is a traffic management tool, and any changes would relate to that issue.
“Any changes that comes in the future, with flexible tariff or increasing a tariff, or the number of gates, it will be in line with the RTA’s strategy to manage the traffic and it will be subject to final approval from Dubai Executive Council,” he said.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
