Dubai’s parking operator, Parkin Company, obtained Dh54.6 billion in fines between April and June of 2024, mainly as a result of public parking enforcement.
The company has also seen a 13% increase in the revenue originating from fines in H1 2024, compared to the same period last year, according to a statement filed in the Dubai Financial Market (DFM), where its shares are traded.
The total number of fines issued in Dubai increased 26% from 291,000 in Q2 2023 to 365,000 in Q2 2024. During this period, the company had a fine collection rate of 87%, as per the financial statements released.
The revenue generated from fines increased by 27% to Dh54.6 million in Q2 2024, driven by a higher number of customers, transactions and an enhanced enforcement framework, the company said. Key to this growth was its use of a fleet of smart inspection scan cars, which have been able to expand the company’s ability to “undertake enforcement across new areas and with higher accuracy, reducing reliance on physical inspections”.
The revenue generated from fines increased by 27%
The optimisation of scan routes, improvements to shift patterns and a change in
the way permits are verified without the need for manual checks, also reportedly contributed to the total number of fines generated by scan cars more than doubling in Q2 2024 vs. Q2 2023.
“The Company delivered revenue growth of 12% in Q2 compared to the same period
in 2023, with total average parking revenue per day reaching a record level, notwithstanding the impact of the extreme rainfall that Dubai experienced in April and the slightly lower number of chargeable days in the period,” said Mohamed Al Ali, CEO of Parkin.
In Q2 2024, the total number of paid parking spaces in Dubai crossed the 200,000 mark in the second quarter of 2024. During this period, the company reported a net profit of Dh95 million, up 7% compared to Q1 2024.
Parkin listed on Dubai’s DFM in March this year following an initial public offering (IPO). The total gross demand for the IPO reached an impressive Dh259 billion at the final offer price, marking a remarkable oversubscription level of 165 times for all tranches combined, setting a new record on the DFM.
