Dubai’s Salik approves distribution of $149.75 million of cash dividends

The cash dividends are equivalent to 7.3338 fils per share
Dubai’s Salik approves distribution of $149.75 million of cash dividends
These dividends represent 100 percent of the net profit generated in the second half of the fiscal year that ended on December 31, 2023. (Photo Credit: Salik)

During the Annual General Meeting (AGM), Dubai’s Salik shareholders approved the Board of Directors’ report on the company‘s activity and its financial statements for the fiscal year that ended on December 31, 2023. As part of this approval, the distribution of cash dividends was also agreed upon. The cash dividends amounted to AED550,035,000 ($149.75 million), which is equivalent to 7.3338 fils per share. These dividends represent 100 percent of the net profit generated in the second half of the fiscal year that ended on December 31, 2023. The AGM of Salik, the exclusive toll gate operator in Dubai, was chaired by Mattar Al Tayer, Chairman of Salik’s Board of Directors.

Read more: Dubai’s Salik sees net profit soar to $80.31 million in Q4 2023

Furthermore, the total value of cash dividends distributable for the fiscal year 2023 was determined to be AED 1,097,962,219. This is equivalent to 14.6395 fils per share. Also, this amount represents approximately 100 percent of the distributable net profit for the year 2023.

Special Resolutions

In addition to the dividend approval, the AGM also passed several Special Resolutions. One of these resolutions involved amending the definition of ‘Government Shareholder’. The amendment includes any entity or individual designated or nominated by the Government of Dubai. Additionally, amendments were made to the Articles of Association to incorporate new business activities into Salik’s operations.

Moreover, the AGM approved Salik’s Corporate Social Responsibilities policy, which outlines the company’s commitment to social initiatives. As part of this policy, a percentage of the company’s forecasted revenues will be allocated towards CSR initiatives.

Various resolutions were approved during the meeting. These resolutions demonstrate the company’s commitment to its shareholders. They also highlight Salik’s dedication to corporate social responsibilities. Furthermore, the approved resolutions signify the company’s intention to expand its business operations.

Record total revenue

According to Mattar Al Tayer, chairman of Salik’s Board of Directors, Salik’s financial performance in 2023 demonstrated the strength of its business model. The company achieved a record total revenue of AED2.1 billion ($571.8 million), representing an 11.4 percent year-on-year increase. This growth was primarily driven by toll usage revenue, which saw an 11.7 percent year-on-year increase. These results mark the strongest full-year performance since Salik’s establishment in 2007.

Al Tayer emphasized that the distribution of 100 percent of the company’s net profit for the second half of 2023 reflects their commitment to delivering long-term value to shareholders. He also acknowledged the trust placed in Salik by the wider stakeholder community, attributing the company’s solid performance in 2023 to this trust. Salik is proud to contribute to and benefit from Dubai’s dedication to growth and diversification, playing a role in the thriving economy, he added

Commitment to ESG stewardship

Al Tayer highlighted the significance of the resolutions passed during the AGM. He stated that these resolutions position Salik for growth. They also underline the company’s commitment to environmental, social, and governance (ESG) stewardship. The recent introduction of the Corporate Social Responsibility & Volunteering Policy in 2024 demonstrates Salik’s dedication to sustainable growth. It also highlights the company’s commitment to aligning with international best practices. The company remains committed to close collaboration with relevant institutions and stakeholders, aiming to support socio-economic development while prioritizing societal well-being and making positive contributions to the community.

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