DUBAI, UAE – The Board of Directors of Salik Company, the Emirate’s exclusive toll gate operator, chaired by Mattar Al Tayer have approved the company’s financial results for the year ended December 31 2023.
Salik continued to deliver strong top-line performance in 2023, with 461.4 million revenue-generating trips and record total revenue of US$574 million (AED2.1 billion).
Toll usage revenue, which represents 87.5 percent of total revenue, increased 11.7 percent year-on-year (YoY) to US$502 million (AED1,845 million), the strongest full year performance since Salik commenced operations in 2007.
It was supported by continued strong growth in tourism and residency, with Dubai remaining an attractive destination both for visitors and individuals relocating to the city.
Revenue-generating trips grew strongly in the fourth quarter, up 11.1 percent YoY to 123.2 million, with toll usage revenue reaching US$134 million (AED493 million) in the fourth quarter, up 11.1 percent YoY and representing 87.5 percent of total revenue.
Mattar Al Tayer said, “Salik has reported another strong year, with record top-line performance supported by continued strength in revenue generating trips. The achieved results for 2023 are a testament to our strategic vision and commitment to delivering long-term value to our shareholders, as well as to the positive macroeconomic environment in the UAE.”
He said, “GDP growth coupled with strong tourism inflow are evidence that Dubai Government’s initiatives to expand the economy, particularly focusing on population growth and maintaining the Emirate’s attractiveness to visitors, are bearing fruit.”
He added, “Salik continues to emerge as a leading toll gate operator globally. Our updated corporate strategy will see the diversification of our revenue streams to supplement the expansion of our core tolling business, and we look forward to updating the market on our strategic progress in due course.”
Al Tayer said, “In view of the strong performance in 2023, the Board is pleased to recommend a dividend of US$149 million (AED 550 million) for the second half of the year.”
Ibrahim Sultan Al Haddad, CEO Salik, said, “Salik is continuing to make good progress on delivering its long-term objectives, in line with our ambition to become a global leader in mobility solutions. We are thriving in the tolling business and remain focused on strengthening our core business offering as we expand our footprint within Dubai.”
He said, “We are committed to delivering sustainable growth, with our updated strategy purpose-built to widen the revenue generating opportunities that we pursue. In the fourth quarter of 2023, we were delighted to announce our partnership with Emaar to provide technology solutions for barrier-free parking at the world-famous Dubai Mall, and we look forward to pursuing similar initiatives in the year ahead.”
The total number of trips, including discounted trips, made through Salik’s eight toll gates grew by 10 percent over the course of the year.
Driven by Dubai’s continued attraction to tourists and business-as-usual commercial activities, the total number of trips grew 8.5 percent YoY in the fourth quarter.
Revenue-generating trips in 2023 reached new highs of 461.4 million, up 11.7 percent YoY and comfortably above the pre-pandemic peak of 434.7 million recorded in 2019.
The fourth quarter alone saw revenue-generating trips of 123.2 million, up 11.1 percent YoY, also higher than the previous quarterly record of 113.8 million recorded in the second quarter of 2023.
The number of vehicles registered with Salik in 2023 increased 8.3 percent YoY, reflecting Dubai Government’s ongoing success in expanding the economy and ensuring the Emirate remains a key destination for tourism and new residents.
In addition, registered active accounts increased 16.0 percent YoY to approximately 2.4 million at the end of 2023.
Tag activations reached c. 253,000 tags in the fourth quarter, an 18.1 percent increase from last year.
Salik generated EBITDA of US$99 million (AED 366 million) in the fourth quarter of 2023, up 5 percent YoY, from US$95 million (AED 349 million) in the prior year.
In light of the strong set of results, the Board of Directors recommend distributing 100 percent of H2 2023 net profit as dividends to shareholders, amounting to US$149 million (AED550 million), equivalent to 7.3338 Fils per share.
Accordingly, dividends for 2023 totaled US$298 million (AED1.098 billion), equivalent to 14.6395 Fils per share.