Dubai traffic nears normal in June, with recovery gaining pace in Q2: Salik CEO

Dubai: Traffic through Dubai’s Salik toll gates began recovering during the second quarter, with a gradual rebound in April and May followed by volumes returning to almost near-normal levels in June.

The recovery came after traffic slowed "following the exceptional regional events that began in late February 2026", although the disruption continued to weigh on Salik’s first-half revenue, toll trips and profit.

Salik’s net profit before tax declined 8.7% year-on-year to Dh773.6 million during the first half of 2026. Second-quarter profit before tax fell 16.4% to Dh367.9 million, with the decline partially offset by lower net finance costs.

Net profit after tax reached Dh704 million in the first half, down 8.7% from Dh770.9 million a year earlier. The company maintained a net profit margin of 49.9%, compared with 50.5% during the corresponding period of 2025.

A total of 383.8 million journeys, including discounted trips, passed through Salik’s toll gates during the first half, representing a 9.5% decline from 424.2 million a year earlier.

Chargeable trips fell 12.5% to 278.5 million, comprising 102.9 million peak-period trips charged at Dh6 and 146.2 million off-peak trips charged at Dh4.

Second-quarter trips declined 12.6% year-on-year to 186.6 million, while chargeable trips decreased 17.2% to 132.8 million.

Active Salik accounts increased 6.6% year-on-year to 2.9 million despite the decline in traffic during the reporting period.

Salik generated Dh1.41 billion in revenue during the first half, down 7.5% from Dh1.53 billion in the same period last year.

Second-quarter revenue declined 11.9% to Dh683.1 million, compared with Dh775.7 million a year earlier.

Toll usage fees, Salik’s largest revenue source, decreased 11.4% to Dh1.2 billion during the first half. Second-quarter toll revenue fell 16.5% to Dh577 million as lower traffic volumes reduced the number of chargeable journeys.

Revenue from fines moved in the opposite direction, increasing 7.5% to Dh144.4 million during the first six months of the year. Second-quarter fines revenue rose 14.2% to Dh75.2 million and represented 11% of quarterly revenue.

Tag activation fees increased 8.1% to Dh24.8 million, supported by a 10.2% rise during the second quarter.

Earnings before interest, tax, depreciation and amortisation reached Dh975.6 million during the first half, down 8.4% year-on-year.

Salik recorded an EBITDA margin of 69.1%, compared with 69.7% a year earlier. The margin contracted partly because the concession fee increased from 22.5% to 23.1%.

Second-quarter EBITDA declined 14.1% to Dh468.4 million, while the quarterly margin fell to 68.6% from 70.3%.

Salik generated free cash flow of Dh551 million during the first half, representing a margin of 39%.

Ancillary revenue reached Dh17.2 million during the first half, rising 98% from a year earlier, supported by parking payment partnerships with Parkonic, Dubai Mall and Dubai Airports.

Salik began processing parking payments at Dubai International Airport in January under a 10-year agreement covering Terminals 1, 2 and 3 and the cargo terminal.

The company also works with Valtrans across more than 100 UAE locations and has signed an agreement to introduce Salik parking payments at Dubai Harbour, with implementation beginning in July.

A separate agreement with the Dubai Integrated Economic Zones Authority will cover more than 21,000 parking spaces across its free zones, establishing another business line outside Salik’s core toll operations.

Salik is also progressing plans for electric vehicle charging through partnerships with Schneider Electric and Vcharge, alongside fuel and service payments through ENOC.