Dubai's Salik to pay 100% of its 2024 net profit as dividend, totaling Dh1.16b

Dubai Salik, the Dubai toll-gate company, will reward shareholders with Dh1.16 billion as dividend for 2024. This comes to 15.52 fils a share.

Salik’s dividend strategy is to pay 100% of its net profit. (For 2023, it had paid Dh1.03 billion.)

The DFM-listed firm closed 2024 with more toll-gates in Dubai. And this year, its revenues are set for a further organic boost from the introduction of new variable usage rates from late January.

Mattar Al Tayer, Chairman of Salik, made a pointed mention of all such possibilities. “We see promising opportunities to continue to increase and diversify our revenues, enhance our financial returns, and contributing to the long-term sustainability of our business," he said.

"We look forward to achieving more operational, financial and strategic milestones in 2025”.

The number of revenue generating trips were 498.1 million in 2024, higher by 8%. All of which helped revenues for the year swell to Dh2.3 billion from an 8.7% growth year-on-year.

Salik now has 10 toll-gates across the city.

On DFM, the stock is 0.19% higher at Dh5.14.

"We are pleased to revise our guidance for FY25 upwards, projecting revenue growth of 28-29% compared to FY24, alongside an EBITDA margin of 68-69%," said Ibrahim Sultan Al Haddad, CEO of Salik.

"Our revised guidance includes contributions from the implementation of variable pricing and our two new gates, both of which have demonstrated the expected performance in their initial weeks of operation."

There are other revenue possibilities too, if Salik replicates the arrangement it has to provide barrier-free parking payment solutions at The Dubai Mall.

The arrangement with Emaar Malls fetched Dh5.8 million in the revenue mix after the launch of services on July 1, 2024.

"I would like to reaffirm our confidence in expanding our ancillary revenue streams in 2025, following the successful collaboration with Emaar Malls to provide an innovative, barrier-free parking payment solution," said Al Haddad.

"We have further broadened our service offering in partnership with Parkonic to integrate Salik's e-wallet system across 107 parking locations in the UAE, in addition to our pioneering collaboration with Liva Group to streamline the vehicle insurance renewal process.”

Last year, revenue from fines shot up 9.3% to Dh236.9 million, while in the fourth quarter alone, this gained 14.5% to Dh62.1 million.