Dubai's Salik in Q1-2025 profit surge on variable pricing, new toll-gates - and fines

Dubai: The toll-gate operator Salik's Q1-2025 net profit surged 33.7% to Dh370.6 million as the Dubai company reaped gains from the launch of variable pricing since late January. The spike was also helped by the opening of two additional toll-gates in the city in November last.

Revenues were also up a similar percentage to Dh751.6 million as Salik billed 158 million trips during the January to end March period.

Salik currently bills toll-gate users based on peak- and off-peak hours.

Salik's revenues from fines were higher 16.2% to Dh68.4 million in the first quarter.

The number of net violations (minus dismissed violations) grew 15%, to 786,000, representing 0.4% of net toll traffic. Revenue from fines contributed 9.1% to total revenue in Q1-2025.

"Profitability is robust, with EBITDA growth of more than 35%, delivering an industry leading EBITDA margin of 69.1%," said Ibrahim Sultan Al Haddad, CEO of Salik.

"A healthy first quarter positions us well for the year ahead - we are pleased to reiterate our full year guidance, with total revenue expected to grow 28-29%, and an EBITDA margin of 68-69% as we continue to strengthen our non-core offering while tapping new opportunities.”

How did the two toll-gates add up

In the first three months, Salik's toll usage fees were higher by 35.5% to Dh665.6 million. "This was primarily due to the introduction of variable pricing at the end of January 2025, the introduction of the two new gates, and Dubai’s high levels of tourism in the first three months of the year," said a statement.

Chargeable trips during the peak period (at Dh6) totaled 39.3 million, with off-peak trips (at Dh4) reaching 107.5 million. (The growth in total trips during the period is due to the use of Salik roads during the past midnight period (at no charge), which totaled 11.2 million in Q1-2025.)