Business Model

Salik’s capital structure has been efficiently utilised for financial resilience, providing the Company with the financial flexibility to optimise debt servicing costs while ensuring an adequate and stable dividend stream that is resilient and maintained through potential economic slowdowns. Salik currently has the debt capacity and operational cash flow to fund the valuation of any potential future gates.

Salik’s concession agreement with the RTA guarantees exclusive rights to Salik to operate the Emirate of Dubai’s toll gates until June 2071. Designed to operate efficiently in an effective, clear and balanced regulatory framework that supports growth, Salik ensures seamless mobility in one of the world’s fastest‑growing economies. The Emirate’s transportation and storage sector grew by 5.3% year‑on‑year during the first 9 months of 2024.

Salik’s investment case is broad‑based and derives only in part from its position as the sole toll gate operator of Dubai’s road network, which allows it to benefit from the growth momentum generated by Dubai’s ambitious urban expansion. To supplement its core business, Salik is currently pursuing additional growth levers through ancillary revenue streams, including private parking payments, insurance services and data monetisation.

A major advantage for investors is Salik’s business model, which is capex‑light in nature and contributes greatly to the generation of high cash conversion levels and best‑in‑class operating margins. The model has been designed to consistently produce superior results, compared to many of its global infrastructure concessionaire peers, who typically exhibit lower profit margins and cash conversion.

With the UAE acting as the host nation for COP28, Salik inaugurated its new eco‑friendly office at Festival Tower. Using next generation energy‑efficient IT infrastructure, sustainable construction materials and low‑energy appliances, Salik also has a paperless operational model, while nearly 100% of its customers transitioned to using the Company’s digital platforms. This has saved approximately 12 kilogrammes of C02 emissions for each transaction made through a digital self‑service channel.

The digital core of Salik’s business, its technologically advanced, automated toll‑collection system, is one of the Company’s inherent strengths, which distinguishes Salik from peers and consistently draws awards and recognition from industry groups. The frictionless, free‑flowing toll system, which is based on RFID and ANPR technologies, operates without toll booths or other impediments to traffic flow.