Asharq Al-awsat English https://aawsat.com/english Middle-east and International News and Opinion from Asharq Al-awsat Newspaper http://feedly.com/icon.svg

Chairman of Salik’s Board of Directors: Increase in Dubai’s Population Opens Growth Opportunities

Chairman of Salik’s Board of Directors: Increase in Dubai’s Population Opens Growth Opportunities

Saturday, 1 October, 2022 - 10:45
Mattar Al Tayer during the celebration of listing the company's shares in DFM (WAM).

Mattar Al Tayer, chairman of Salik’s board of directors, said that the successful listing of Salik on the Dubai Financial Market (DFM) is “a clear demonstration of investor confidence in Dubai’s capital markets and its growth ambitions.”


Al Tayer said Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance of the UAE, has a clear vision to double the size of the financial market and attract foreign investments, and that Salik is further proof of the success of this vision.


Salik was priced at 2 dirhams ($0.5) per share.


The company, which has 3.6 million vehicles registered on its system, raised 3.735 billion dirhams ($1.02 billion) by selling a 24.9 percent stake in its initial public offering (IPO). The IPO was oversubscribed more than 49 times across all tranches with total gross demand at 184.2 billion dirhams ($50.2 billion).


Al Tayer told Asharq Al-Awsat newspaper that Salik is a pioneering brand that played a vital role in traffic management in Dubai for fifteen years.


He noted that Salik’s role will remain in the core of the roads and transport sector’s expansion in a way that supports Dubai’s economy.


Salik also enjoys an excellent position that qualifies it to benefit from the growth opportunities through three factors, Al Tayer added.


According to him, the three factors are: endorsing the newest techniques to ensure efficient conduct of operations, an effective organizational framework that supports future growth, a forward-looking approach and sustainable agenda that goes in line with the future expansion plans in the emirate.


“According to Dubai 2040 Urban Master Plan, the emirate’s population is expected to increase from 4.5 million in 2020 to 7.8 million in 2024. This would lead to an increase in the traffic movement and new growth opportunities for the company.”


“There are other opportunities and fields that the company can benefit from in developing its revenue through the advertisement services whether on the road toll portal or on the application,” chairman of Salik’s board of directors proceeded.


Revenue can also be attained through the data and statistics of road traffic as well as offering consultation services to the governments wishing to apply the road toll portals or improve the current operations, he added.


Al Tayer confirmed that the company will focus in the coming period on optimizing the growth potentials provided by additional opportunities such as advertisement services.


Dubai’s government adopts a flexible work system founded on offering the best conditions to make Dubai a model for the cities that prioritize quality of life.


Salik’s net toll traffic from 2013 to 2019 grew at a compound annual rate of 5.5 percent, driven by Dubai’s expanding economy.


As for the challenges, Al Tayer ruled out possible challenges facing Salik in the future.


Editor Picks

Multimedia