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Dubai-listed road toll operator Salik expects its revenue to grow 7-8% in 2024 following the launch of two new toll gates valued at AED 2.734 billion ($646 million) in November.
Salik revised its revenue growth upwards from 4-6% with EBITDA margin of 67-68% expected, revised upwards from 65-66%.
The two new gates, Business Bay and Al Safa South, are expected to be operational by the end of November and are designed to enhance traffic flow and reduce congestion in alignment with Roads and Transport Authority (RTA) strategy, Salik said in a filing to Dubai Financial Market (DFM).
Once they are operational, the number of gates operated by Salik will rise from eight to 10.
The Business Bay gate, which accounts for AED 2.265 billion of the valuation, will be the first Salik gate on Al Khail Road rather than the main arterial road passing through Dubai, will be located at Business Bay crossing.
The Al Safa South Gate, which will account for AED 469 million, will be on Sheikh Zayed Road between Al Meydan Street and Umm Al Sheif Street.
Under its concession agreement with the RTA, Salik has the exclusive rights to construct, operate, and maintain the toll gates until end of June 2071.
Salik CEO Ibrahim Sultan Al Haddad said an agreement has been reached with the RTA on a repayment plan for the two new gates over a period of six years, starting from the end of November 2024, with an annual instalment of AED 455.7 million in two equal instalments.
(Writing by Imogen Lillywhite; editing by Daniel Luiz)
