No decision yet on expanding Dubai's Salik toll gates after IPO announcement

Salik has no immediate plans to expand the number of gates in Dubai, its chairman has said.

The company — which is exclusively authorised to operate, manage and develop the traffic toll system in Dubai — runs eight toll gates in the emirate and will be in control of any new gates through a 49-year concession agreement.

On Tuesday, the Dubai government announced plans to sell a 20 per cent stake in Salik through an initial public offering as it looks to boost the size of its capital markets.

There had been speculation on social media in recent days over potential plans to add further gates along key arteries such as the E311 after people noticed the IPO being advertised on road signs.

According to new agency Wam, Salik chairman Mattar Al Tayer said that any decision to expand the road toll system or add further gates will depend on the outcomes of the transport strategy being constantly revised by Dubai's Roads and Transport Authority.

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Existing toll gates in Dubai can be removed or modified subject to a decree by the chairman of the Dubai Executive Council.

New toll gates can also be added subject to the council’s approval, once the Roads and Transport Authority conducts a “comprehensive traffic study in co-ordination with Salik”, Ibrahim Al Haddad, Salik's chief executive, told The National in an interview on Tuesday.

“Today we have an opportunity to add a gate because of traffic needs and we have provided alternatives … the plan from an engineering standpoint is ready,” Mr Al Haddad said.

“The timing to add a new gate will be subject to final approval.”

In its IPO prospectus, Salik says there is normally a long lead-in time before any new gate is opened.

“A new gate typically takes approximately nine to 10 months