Dubai Parkin revenue forecast cut as drivers shift to seasonal cards, developer parking grows

Dubai: Parkin has cut its 2026 public parking revenue forecast after revising its outlook for the rollout and utilisation of new parking spaces, with stronger demand for seasonal cards and developer parking expected to make up the shortfall.

The Dubai-listed parking operator now expects its public parking business to generate Dh510 million to Dh550 million in 2026, down from its previous forecast of Dh560 million to Dh610 million.

The revised range is also below the Dh524 million generated by the public parking segment in 2025.

Parkin said the change reflects continued strong demand for seasonal cards, as well as the timing of new public parking spaces coming into operation and how quickly those spaces reach expected utilisation levels.

Parkin’s revised 2026 outlook comes as the Dubai-listed parking operator reported second-quarter revenue of Dh364.1 million, up 14 per cent year-on-year, while EBITDA rose 15 per cent to Dh217.2 million and net profit increased 12 per cent to Dh166.2 million.

While the public parking outlook has been reduced, Parkin has raised its forecast for seasonal card revenue.

The company now expects seasonal card revenue of Dh280 million to Dh300 million in 2026, compared with its previous guidance of Dh260 million to Dh280 million and Dh211 million in 2025.

The shift comes as demand for seasonal parking cards remains strong. Sales increased 38 per cent year-on-year to 97,500 in the second quarter.

Parkin has previously said customers are taking advantage of the price difference between variable daily parking tariffs and unchanged seasonal card rates, making the cards an attractive option for frequent users.

Parkin CEO Eng. Mohamed Abdulla Al Ali said the company was seeing strong demand for seasonal cards and developer parking despite softer public parking demand.

“Growth was driven by our seasonal cards, developer parking and enforcement segments, offsetting softer public parking demand during the quarter,” he said.

He added: “We remain committed to our dividend policy and to delivering sustainable long-term value for our shareholders.”

Despite lowering its revenue forecast, Parkin is still expanding its public parking network.

The company had originally expected to add up to 7,500 public parking spaces in 2026. It added 9,900 spaces in the first half of the year and now expects another 3,500 to 5,000 spaces to be added by the end of 2026.

The company said the pace at which the new spaces reach expected utilisation levels is one of the reasons behind the revised public parking revenue outlook.

Parkin maintained its 2026 enforcement revenue guidance at Dh420 million to Dh460 million, compared with Dh409 million in 2025.

The company has been increasing its use of technology in enforcement. During the second quarter, its smart inspection cars scanned 20.6 million vehicle registration plates, up 52 per cent from a year earlier, while total fines issued increased 5 per cent to 695,400.

Parkin has also raised its forecast for its private and developer parking business.

Revenue from the segment is now expected to reach Dh130 million to Dh150 million in 2026, up from the previous guidance of Dh110 million to Dh130 million and Dh94 million in 2025.

The business has expanded rapidly. Parkin's developer parking portfolio more than tripled year-on-year to 61,500 spaces by the end of the second quarter.

However, the company warned that the growth comes with a margin trade-off.

Parkin said it entered into several low-margin developer agreements in 2025 under which it must pay minimum annual guarantees and/or fixed annual fees. As a result, while developer parking revenue is expected to grow, margin expansion will remain constrained.

The fixed components of those agreements will be recognised below EBITDA as amortisation of right-of-use assets and interest on lease liabilities, increasing depreciation and finance costs.

Parkin expects capital expenditure of Dh45 million to Dh55 million this year, compared with Dh13.9 million in 2025.

The spending will support developer contract obligations and technology upgrades, including smart parking camera infrastructure. The planned investment includes up to Dh20 million for Sports City, which had been announced previously.