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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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Trump Hits Back with Tariffs of 125%, after China Raises Its Tariff on US Goods to 84%

A general view shows the Huangpu River and the financial district in Shanghai on April 9, 2025. (AFP)
A general view shows the Huangpu River and the financial district in Shanghai on April 9, 2025. (AFP)
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Trump Hits Back with Tariffs of 125%, after China Raises Its Tariff on US Goods to 84%

A general view shows the Huangpu River and the financial district in Shanghai on April 9, 2025. (AFP)
A general view shows the Huangpu River and the financial district in Shanghai on April 9, 2025. (AFP)

President Donald Trump on Wednesday raised tariffs on China to 125%, hours after China boosted taxes on American imports to 84% and vowed to "fight to the end" in an escalating battle that threatens to disrupt trade between the world's two largest economies.

The new rate levied by Beijing, which has taken effect, comes in response to Trump's earlier move to raise the tariff on Chinese products to 104% as part of increases that hit US trading partners worldwide. Europe and Canada also hit back Wednesday with new tariffs on imports from America.

Citing lack of respect, Trump responded by raising tariffs on China to 125%, while pausing tariffs on most countries for 90 days.

The hikes are the latest in an ongoing trade war that threatens to raise prices for consumers in America and derail China's attempts to reinvigorate its sluggish economy. The response from the Chinese government signals its determination not to bend to Trump's pressure, despite the risks.

"If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end," the Ministry of Commerce said before announcing its latest tariff hike.

Beijing also imposed restrictions on doing business with nearly a dozen American companies and said it was launching a new challenge to the American tariffs at the World Trade Organization.

China is a major exporter to US but no longer No. 1  

The United States sent a record $199 billion in exports to China last year, while China exported $463 billion in goods and services to the United States, third behind Mexico and Canada, according to the US Commerce Department.

China was the top source of US imports as recently as 2022 but it has lost ground to America’s neighbors amid heightened tensions with the United States.

The European Chamber of Commerce in China accused the US of rolling back many of the principles that have underpinned its approach to trade and investment. It said that Trump's tariffs would have a significant impact on European companies exporting from China to the US, forcing them to rethink their business models and supply chains.

"This will lead to a substantial increase in operational costs and inefficiencies, and ultimately higher prices for consumers," it said.

No ‘easy path’ to restarting US-China trade talks

Though the US and China may want to find a way back to the negotiating table, "this won’t be an easy path to navigate with both countries doubling down and bilateral engagement at a virtual standstill," said former US trade official Wendy Cutler, a vice president at the Asia Society Policy Institute.

China does not appear interested in bargaining, as some other countries have started doing.

"If the US truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit," Foreign Ministry spokesperson Lin Jian said.

The Chinese Ministry of Culture and Tourism issued a travel advisory asking its citizens to evaluate the risks of visiting the US as tourists and to exercise caution. The advisory, which came shortly after the announcement of the tariff hike, cited the deterioration in economic and trade relations as well as the "safety situation" in America.

China's response has gone from measured to tough 

Trump has now raised the tariff on Chinese goods five times since taking office in January. The first two hikes of 10% each were met with what analysts described as a measured response from China that left the door open for talks.

But after Trump announced an additional 34% tariff on Chinese goods last week, along with tariffs on other countries in his "Liberation Day," China matched that with a 34% tariff on imports from the US.

Trump then added a 50% tariff on goods from China, saying negotiations were terminated, and bringing the cumulative US tariff to 104%. China responded by raising the tariff on American products by the same amount, bringing its total rate to 84%.

China's latest measures include adding 11 American companies to an "unreliable entities" list that bars Chinese companies from selling them goods that could have military uses. Among the companies are American Photonics, and SYNEXXUS, which both work with the American military.

A Chinese position paper issued Wednesday said that the US has not honored the promises it made in an earlier "Phase One" trade deal concluded during Trump’s first term. As an example, it said a US law that would ban TikTok unless it is sold by its Chinese parent company violates a promise that neither would "pressure the other party to transfer technology to its own individuals."

Trump signed an order to keep TikTok running for another 75 days last week after a potential deal to sell the app to American owners was put on ice. Representatives from ByteDance, the parent company, told the White House that the Chinese government would no longer approve a deal until there could be talks on trade.

"History and facts have proven that the United States’ increase in tariffs will not solve its own problems," the Commerce Ministry said in a statement introducing the paper. "Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself."