Dubai’s Salik Profits Surge in Q1 2025 from Variable Pricing and New Toll Gates
In a remarkable financial turnaround, Dubai’s toll-gate operator Salik has announced a significant 33.7% increase in net profit for the first quarter of 2025, reaching Dh370.6 million.
This surge can be attributed to several strategic initiatives, including the introduction of variable pricing and the opening of new toll-gates.
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Since late January, Salik has implemented a peak and off-peak pricing model across its toll locations, allowing for more flexible charging based on traffic patterns.
This approach has not only enhanced revenue but also improved traffic management throughout the city.
The company’s revenues mirrored this success, climbing to Dh751.6 million as Salik billed an impressive 158 million trips from January to March.
The increased usage reflects the growing reliance on toll systems in Dubai, which facilitate smoother travel for residents and visitors alike.
Fines also contributed significantly to Salik’s financial performance, with revenue from penalties rising by 16.2% to Dh68.4 million.
The number of net violations grew by 15%, indicating a proactive enforcement strategy, as the company recorded 786,000 violations, which accounted for 0.4% of total toll traffic.
CEO Ibrahim Sultan Al Haddad expressed confidence in the company’s trajectory, highlighting robust profitability with an EBITDA margin of 69.1%.
He confirmed that Salik is well-positioned for continued growth, projecting total revenue to increase by 28-29% for the year.
As Salik continues to innovate and adapt to the dynamic demands of Dubai’s infrastructure, its strategic decisions are setting a benchmark for efficiency and profitability in the transport sector, ensuring a smooth ride ahead for both the company and its users.
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