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Dubai's Road-Toll Operator Salik to Sell 20% Stake in IPO

One of Salik’s eight toll gates, where 1.6 million vehicles pass daily (Asharq Al-Awsat)
One of Salik’s eight toll gates, where 1.6 million vehicles pass daily (Asharq Al-Awsat)
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Dubai's Road-Toll Operator Salik to Sell 20% Stake in IPO

One of Salik’s eight toll gates, where 1.6 million vehicles pass daily (Asharq Al-Awsat)
One of Salik’s eight toll gates, where 1.6 million vehicles pass daily (Asharq Al-Awsat)

Salik Company, Dubai’s exclusive road-toll operator, announced a plan to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).

This step is a continuation of the privatization program pursued by Dubai and its plans to double the size of its financial market to three trillion dirhams ($816.5 billion) and attract foreign investments.

In a statement on Monday, Salik said that 1.5 billion shares, each with a nominal value of AED0.01, will be made available in the IPO, representing 20% of Salik’s total issued share capital.

It added that the offering comprises Individual Subscribers (first tranche), Professional Investors (second tranche), and Eligible Employees (third tranche).

The subscription period will open on September 13 and is expected to close on September 20 for UAE Retail Investors and on September 21 for Qualified Investors.

According to the statement, Dubai’s government, represented by the Department of Finance (the Selling Shareholder), reserves the right to amend the size of the offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the Securities & Commodities Authority (SCA).

The share capital of the Company, as at the date of the listing, has been set at AED75 million ($20.4 million), divided into 7.5 billion shares paid-in-full. The value of each share is AED0.01.

The offer price per share will be determined through, and following, a book building process. Investors participating in the UAE Retail Offering will subscribe for the shares at the offer price.

Following the IPO, Salik intends to pay dividends twice, in April and October of each fiscal year.

It expects to pay a first dividend for H2 2022 by April 2023, and it expects to pay 100% of the net profit, after keeping aside the statutory reserves required by law (statutory reserves expected to amount to AED37.5 million for the first dividend).

Mattar al-Tayer, Chairman of Salik’s Board of Directors, said that Dubai has succeeded in laying a clear economic path and an ambitious growth plan that includes attracting direct strategic investments.

He further stated that the Company is in a prime position to benefit from additional growth opportunities and is designed to ensure efficient operations.

“It is underpinned by an effective regulatory framework that supports future growth, and a business model that requires low capital expenditures. It also boasts cash conversion margins that are considered best-in-class.”

CEO of Salik Ibrahim Sultan al-Haddad, for his part, said that the IPO represents an important milestone in Salik’s journey, as it provides the company with an opportunity to consolidate its success as an exclusive operator of toll gates in Dubai, currently operating eight gates distributed in strategic locations across the busiest corridors of the Emirate.

The Company’s long-term principles and values are centered around customers, the environment, human capital, and modern technologies.

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Business

Fitch Keeps US at 'AA+', Cites Economic Resilience amid Fiscal Risks

The American flag flies in the National Mall near the Capitol building in Washington (Reuters)
The American flag flies in the National Mall near the Capitol building in Washington (Reuters)
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Fitch Keeps US at 'AA+', Cites Economic Resilience amid Fiscal Risks

The American flag flies in the National Mall near the Capitol building in Washington (Reuters)
The American flag flies in the National Mall near the Capitol building in Washington (Reuters)

Fitch on Thursday affirmed the sovereign credit rating for the United States at "AA+" with a stable outlook, citing its large economy, high per-capita income and the US dollar's status as the world's leading reserve currency.

The US economy remained resilient despite higher tariffs, government spending cuts, tighter border controls and heightened policy uncertainty, reflecting its ability to absorb shocks and economic flexibility, Reuters quoted the credit ratings agency ⁠as saying.

Fitch, however, estimated ⁠economic growth of 1.9% in 2026-2027, lower than the 2.8% in 2025, and noted weakening labor demand and a significant slowdown in job creation this year.

Inflation remains a concern, with the agency expecting it to average 3.4% in ⁠2026, above the Federal Reserve's 2% target. Tariffs have added to core goods inflation, though their impact has been less severe than expected.

Fitch expects the general government deficit to widen to 7.4% of GDP in 2026 and remain at that level in 2027, the highest among "AA"-rated sovereigns.

Higher military and interest costs, along with rising Medicare and Social Security spending, would limit ⁠efforts ⁠to reduce the deficit.

Peer S&P Global also maintained its "AA+" rating on the US in June, citing the economy's resilience and strong institutions.

Fitch had downgraded the US sovereign rating by one notch from the top-tier triple-A rating in 2023, pointing to expected fiscal deterioration and repeated down-to-the-wire debt ceiling negotiations.

Moody's downgraded the US by one notch last year, citing rising debt levels and stripping the country of its last remaining triple-A rating.

Business

Gold Heads for Weekly Loss as Investors Unwind Inflation-fueled Rally

An employee displays gold bars at the Korea Gold Exchange in Seoul (Reuters)
An employee displays gold bars at the Korea Gold Exchange in Seoul (Reuters)
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Gold Heads for Weekly Loss as Investors Unwind Inflation-fueled Rally

An employee displays gold bars at the Korea Gold Exchange in Seoul (Reuters)
An employee displays gold bars at the Korea Gold Exchange in Seoul (Reuters)

Gold prices slipped on Friday and were headed for a weekly loss as investors locked in profits a day after bullion was propelled to its highest level in more than two months on mild US inflation data that weakened the case for a near-term Federal Reserve rate hike.

Spot gold was down 0.5% at $4,330.70 per ounce, as of 0714 ‌GMT. US gold futures ‌for December delivery slid 0.7% to $4,387.40, said Reuters.

Bullion climbed to ‌its ⁠highest point since ⁠June 5 on Thursday, before settling lower, setting it on track for a weekly loss.

"There is some episodic and more speculative capital that's maybe taking a bit of profit in gold, because there's not a near-term catalyst quite so potent immediately in front of us," said Ilya Spivak, head of global macro at finance content network Tastylive.

"Gold ⁠may be setting up, with some choppy trading ‌along the way, for a meaningful ‌rally now. And if we can take out $4,400, I don't think $5,000 by year-end ‌is any kind of a sketch."

The non-yielding metal got ‌a boost after an unexpected drop in US July nonfarm payrolls last week, followed by softer inflation data this week, sharply reducing expectations of a rate hike next month.

US producer prices were unchanged in July, following a revised ‌0.1% drop in June, while US consumer prices barely increased in July as the cost of ⁠gasoline declined ⁠for a second consecutive month.

Traders are now pricing only a 33% chance of a rate hike in September, down from about 55% last week, according to the CME FedWatch Tool.

Lower interest rates make gold more attractive relative to yield-bearing assets.

On the geopolitical front, Washington on Thursday threatened to maintain a naval blockade of Iran indefinitely, ratcheting up economic pressure on Tehran as ceasefire talks have floundered.

In other metals, spot silver slipped 0.3% to $64.25 per ounce.

Platinum was steady at $1,717.40, while palladium inched 0.3% lower at $1,303.50, both touching their lowest levels since August 4 earlier in the session. Both metals were headed for a weekly drop.

Business

Saudi Petrochemical Companies Cut Losses by More than 50% in First-Half

A SABIC manufacturing site in Jubail (SABIC Media Center) 
A SABIC manufacturing site in Jubail (SABIC Media Center) 
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Saudi Petrochemical Companies Cut Losses by More than 50% in First-Half

A SABIC manufacturing site in Jubail (SABIC Media Center) 
A SABIC manufacturing site in Jubail (SABIC Media Center) 

Net losses at nine petrochemical companies listed on the Saudi Exchange fell by more than 50% in the first half of 2026 to SAR 1.7 billion ($452.8 million), from about SAR 3.4 billion ($908.5 million) a year earlier.

The improvement reflected stronger operating efficiency, better results from some associates and joint ventures, and lower losses from discontinued operations and asset impairments. Companies also faced pressure from weaker equity investments, higher average costs for some production inputs and lower sales volumes due to supply-chain disruptions.

Four companies posted net profits — SABIC Agri-Nutrients, Yansab, Saudi Industrial Investment Group and Alujain — while Advanced Petrochemical, Sipchem, SABIC, Tasnee and Saudi Kayan reported losses.

SABIC Agri-Nutrients posted the sector’s highest profit at about SAR 1.6 billion, down 21.4% from SAR 2.04 billion a year earlier. The company attributed the decline to lower sales volumes caused by supply-chain challenges and weaker results from an associate and a joint venture, partly offset by higher average selling prices for most products.

Yansab ranked second, with profit surging 363% to SAR 270 million from SAR 58.2 million, supported by higher selling prices and strong plant reliability. Saudi Industrial Investment Group’s profit rose 410% to SAR 194 million.

Saudi Kayan recorded the largest loss at SAR 1.29 billion, compared with SAR 1.27 billion a year earlier. Tasnee lost SAR 889.1 million and SABIC SAR 820 million.

Combined second-quarter losses for the nine companies fell 42.17% to SAR 2.07 billion from SAR 3.58 billion a year earlier.

G. World CEO Mohamed Hamdy Omar told Asharq Al-Awsat that performance varied according to product mix, petrochemical feedstock costs, production and sales volumes, operating efficiency and exposure to global markets and supply-chain disruptions.

He noted that SABIC’s losses narrowed sharply from SAR 4.07 billion to SAR 833 million, but said much of the improvement reflected the non-recurrence of provisions and impairment charges rather than an equivalent recovery in underlying operations.

SABIC Agri-Nutrients, meanwhile, remained among the sector’s most profitable companies, although second-quarter profit fell 64.2% to SAR 379 million because of lower sales volumes, supply-chain disruptions and weaker contributions from an associate and joint venture.

Omar expects a gradual but uneven recovery in the second half, with global demand, feedstock and energy costs, excess capacity, shipping disruptions and geopolitical tensions remaining key factors. He said sustainable improvements in operating margins, sales volumes and cash flow would provide the clearest evidence of a genuine sector recovery.