Dubai has passed legislation establishing Salik as a public joint stock company, accelerating the initial public offering (IPO) of the emirate’s tariff system and its listing on the local stock exchange.
Dubai Media Office reported that the law issued by Dubai’s Ruler, Sheikh Mohammed bin Rashid Al Maktoum, stipulates that the Government of Dubai shall fully own all shares of the Salik company. The statement further stated that the Executive Council may determine a percentage of the shares whose ownership may be transferred to others, either publicly or privately, through subscription.
The law requires the Dubai government to own at least 60 percent of the company’s capital if its shares are offered for subscription.
The Salik system’s operator planned to hold its first meetings with selected major investors this month, ahead of a possible stock exchange listing this year as early as September.
Salik is an automated toll collection system that was launched in 2007 at 8 city gates, where 4 dirhams ($1.09) are deducted from prepaid accounts, eliminating the need for cash or toll booths on the roads.
The planned listing is part of Dubai’s efforts to boost trading volumes by privatizing ten state-owned companies.