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Mattar Mohammed Al Tayer, chairman of the board of directors of Salik, said the company decided to list its shares in the Dubai Financial Market to ensure its long-term access to capital markets and allow investors to invest in premium assets.
In an interview with the Emirates News Agency (Wam), Al Tayer said that offering Salik shares in the Dubai Financial Market is part of the privatisation programme launched by the emirate.
He said it is also part of the plan to double the value of Dubai’s financial markets and stock exchanges to Dh3 trillion, in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Al Tayer highlighted three major reasons for Salik’s investment attractiveness.
Firstly, the company is the exclusive operator of Dubai’s automatic road toll collection system which currently manages eight gates, in addition to any new gates in the emirate through a concession agreement lasting 49 years.
The second reason is the company’s business model, which is characterised by its low capital spending and cash transfer margins, which is the best in its business category.
The third reason is the many opportunities available for the company to expand in the UAE and abroad, which will contribute to increasing its size, operations and activities.
"Any decision to expand the road toll system or add further gates will depend on the outcomes of the transport strategy being constantly revised by Dubai’s Roads and Transport Authority (RTA)," Al Tayer said.
Salik currently owns eight gates distributed along Sheikh Zayed Road, which is the artery of the traffic in Dubai, as well as on Al Garhoud Bridge, Al Maktoum Bridge, Al Ittihad Road and the Airport Tunnel, which help facilitate the movement of 3.6 million registered vehicles. He further said that 481 million journeys were registered through Salik’s gates last year, whether they were tourists visiting Dubai’s tourist attractions or residents moving between the emirate’s regions to carry out their daily activities.
"The company’s future performance is expected to rely on its additional growth potential based on the positive results of its current activities, including advertising services and achieving traffic movement statistics-related revenues, as well as providing consultancy services to governments wishing to adopt toll gate systems," Al Tayer noted, stressing that the company prioritises investment in technology to maintain its innovation-based leadership.
Dubai’s roads and transport infrastructure is the cornerstone of its economic development, he explained, affirming that Dubai is one of the fastest growing cities in the world, and its transport and infrastructure sector plays a key role in the emirate’s development and enhancing its global stature as a business hub.
"The Salik system offers a convenient digital solution for collecting traffic tariffs, with the ability to accommodate Dubai’s growing population, which is expected to rise from 3.3 million people in 2020 to 8.5 million people in 2040," Al Tayer said. — Wam
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