Dubai’s exclusive toll gate operator, Salik Company, has announced the valuation of two new toll gates at Business Bay and Al Safa South, totalling Dh2.73 billion. The Business Bay Gate is valued at Dh2.26 billion, while the Al Safa South Gate is valued at Dh469 million.
The gates are expected to be operational by the end of November 2024. Their addition will expand Salik’s toll gate network from eight to ten, aimed at improving traffic flow by redirecting vehicles to higher-capacity routes. The Roads and Transport Authority (RTA) conducted traffic impact studies to ensure strategic alignment with traffic management goals.
Under a Concession Agreement with the RTA, Salik holds exclusive rights to construct, operate, and maintain the toll gates until June 2071. The valuation of the gates was approved by Salik’s Board and finalised at an average value, as the differences between Salik’s and RTA’s valuations did not exceed 5%.
The toll gate operator has agreed to a repayment plan with the RTA, covering the total valuation over six years, starting from November 2024, with annual instalments of Dh455.7 million, paid in two equal amounts.
Salik anticipates a 7-8% increase in revenue-generating trips for 2024, compared to previous estimates of 4-6%, supported by Dubai’s positive macroeconomic factors. The new gates are expected to enhance revenue and contribute to a robust EBITDA margin of 67-68%
