• Fri. Sep 13th, 2024

Salik to Open Two New Toll Gates at Business Bay and Al Safa South, Boosting Revenue Potential

ByNavneeth

Sep 11, 2024

Dubai’s Salik is set to expand its toll network with the introduction of two new gates at Business Bay and Al Safa South, expected to be operational by the end of November 2024. The addition of these gates will increase the total number of Salik toll gates across the emirate to ten, further streamlining traffic management and boosting revenue.

According to estimates and traffic studies, the Business Bay Crossing is poised to become one of the busiest toll gates in Dubai, rivaling the traffic at the Al Barsha and Al Safa gates. These two gates are currently the top contributors to Salik’s revenue, accounting for 20.7% and 19.0% of revenue-generating trips in the first quarter of 2024, respectively. The new Business Bay gate is expected to generate traffic levels close to those of these high-performing gates, underscoring its strategic importance as a key route for motorists traveling from Sharjah, Al Nahda, and Al Qusais to Al Khail Road.

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A Salik spokesperson highlighted during the Investor Conference Call on Wednesday that the fourth quarter typically sees the highest number of road trips, followed by the first quarter, making it a crucial period for Salik’s performance. “When you look at Salik’s performance, you need to consider the overall year, as each quarter compensates for the others,” the spokesperson noted.

The Board of Salik has approved the valuation of the two new toll gates at Dh2.734 billion, with the Business Bay gate valued at Dh2.265 billion and the Al Safa South gate at Dh469 million. These gates are projected to generate approximately 111 million revenue-generating trips in 2025, significantly contributing to Salik’s overall revenue.

As the toll gate network expands, Dubai continues to enhance its infrastructure to manage the growing traffic demands of the emirate, ensuring smooth and efficient travel for residents and visitors alike.



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