Salik reports revenue of Dhs562 million in Q1 of 2024

The Board of Directors of Salik Company (Salik), Dubai’s exclusive toll gate operator, chaired by Mattar Al Tayer, Chairman of the Board, announced the Company’s financial results for the first quarter of 2024 (Q1 2024), logging with 122.8 million revenue-generating trips and total revenue of Dhs562 million. This marks an increase of 8.1 per cent YoY, the highest Q1 revenue-generating trips since inception.

Toll usage revenue, which represents 87.4 per cent of total revenue, also increased 8.1 per cent YoY to Dhs491 million, supported by continued strong growth in tourism and residency, with Dubai remaining an attractive destination both for visitors and new residents relocating to the city.

Commenting on the results, Mattar Al Tayer, Chairman of the Board of Directors of Salik, said, “Salik has delivered another strong quarter at the beginning of 2024, a continuation of the momentum from record top-line performance in 2023.

The results achieved in the period are a testament to our strategic vision and commitment to delivering long-term value to our shareholders, as well as to the positive macroeconomic environment in the UAE. GDP growth coupled with strong tourism inflow are evidence that the Government of Dubai’s initiatives to expand the economy, particularly focusing on population growth and maintaining the Emirate’s attractiveness to visitors, are bearing fruit.” Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented, “We are very pleased to have started the year strongly, with revenue-generating trips increasing by over 8 per cent year-on-year, supporting our ambition to become a global leader in mobility solutions.

We continue to thrive in our core tolling business and remain focused on diversifying our portfolio through the expansion of ancillary revenue streams.

The first quarter marked a period of strategic progress, having announced an expansion of our toll gate network through the addition of two new gates in Dubai, which we plan to be operational by November of this year.” Meanwhile, registered active accounts increased 16.5 per cent YoY to approximately 2.5 million from approximately 2.1 million in Q1 2023, with tag activations reaching c.242,000 tags in the first quarter, an almost 13 per cent YoY increase. In addition, the number of vehicles registered with Salik in the first quarter increased 9.2 per cent YoY, reflecting the Government of Dubai’s ongoing success in expanding the economy and ensuring the Emirate remains a key destination for tourism and new residents.

Salik continued to offer tariff exemptions to vehicles used by charities, schools, people of determination, ambulances, and other public services. The number of free-of-charge trips made by exempted vehicles through Salik’s eight toll gates increased 5.1 per cent YoY to c. 2.1 million in the first quarter of 2024. Growth was mainly driven by an increase in the number of registered exempted vehicles which grew 10 per cent YoY to reach 53,819 vehicles by the end of the quarter.