Salik expands with two new toll gates in Dubai, enhancing traffic flow and driving growth

New gates to assist in reducing traffic congestion by up to 15 percent
Salik expands with two new toll gates in Dubai, enhancing traffic flow and driving growth
Two new Salik road toll gates to launch soon in Dubai

Salik Company PJSC, the exclusive toll gate operator in Dubai, has been assigned by the Roads and Transport Authority (RTA) to install two additional toll gates. These new gates aim to optimize traffic flow and reduce congestion on key routes in Dubai. The locations for the new toll gates are the Business Bay Crossing on Al Khail Road and Al Safa South on Sheikh Zayed Road between Al Meydan Street and Umm Al Sheif Street. The RTA selected these locations based on extensive traffic studies to manage traffic distribution and alleviate congestion by diverting some traffic to alternative routes with higher capacity. This will result in smoother and more efficient travel for all motorists in Dubai.

Read more: Dubai’s Salik shares surge 20 percent on market debut

The two new gates will increase the total number of toll gates operated by Salik in Dubai from eight to ten. Similar to the setup at Al Mamzar North and South, Al Safa South will be connected to the existing Al Safa gate (referred to as Al Safa North). Commuters passing through both gates in the same direction within one hour will be charged only once.

Ibrahim Sultan Al Haddad, chief executive officer of Salik Company PJSC. (Photo Credit: Salik)

Significant milestone

Ibrahim Sultan Al Haddad, CEO of Salik Company PJSC, stated that the addition of the new toll gates in these busy locations is a significant milestone in their growth plan. He highlighted the partnership with the RTA in launching these gates as an important step towards enhancing Dubai’s transport infrastructure with smart and sustainable mobility solutions. The initiative aligns with Dubai’s Urban Plan 2040, which aims to achieve sustainable and efficient urban growth. The new toll gates will contribute to optimizing travel time, reducing congestion, and improving overall mobility in the city.

Concession agreement and responsibilities

According to the concession agreement with the RTA, Salik will be responsible for the necessary civil works involved in constructing, operating, and maintaining the toll gates. Salik will also have the exclusive right to operate the gates until June 2071. Moreover, the RTA anticipates that the Business Bay Crossing gate will help reduce traffic congestion by 12-15 percent on Al Khail Road and decrease traffic volume by 10-16 percent on Al Rabat Street. It will also redirect traffic to Al Maktoum and Al Garhoud bridges and Ras Al Khor Street. Similarly, the Al Safa South gate is expected to reduce right-turn traffic volume from Sheikh Zayed Road to Meydan Street by 15 percent and optimize traffic flow on Financial Centre, First Al Khail, and Al Asayel streets.

Furthermore, with the introduction of the new toll gates, Salik foresees an increase in the number of revenue-generating trips. Additional details regarding the upfront valuation, funding mix, and the impact on revenues, EBITDA, and the balance sheet will be communicated to the market once detailed traffic studies are completed and an agreement is reached with the RTA.

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