Salik Company PJSC, Dubai’s exclusive toll gate operator, posted its strongest quarterly performance to date, reporting a 33.7% year-on-year (YoY) increase in revenue to AED 751.6 million for the first quarter of 2025. The surge was driven by the launch of two new toll gates in late 2024 and the rollout of variable pricing in January this year.
Strong Growth in Core Tolling Operations
Salik’s core business saw significant growth in traffic volumes, with total chargeable trips reaching 158 million in Q1, up sharply from the previous year. The company attributes this growth to the new Business Bay and Al Safa South toll gates, which went live in November 2024, and to variable toll pricing introduced on January 31, 2025.
- Peak-hour trips (charged AED 6) totaled 39.3 million
- Off-peak trips (AED 4) hit 107.5 million
- Late-night (AED 0) trips reached 11.2 million
This led to toll usage fees rising 35.5% YoY to AED 665.6 million, fueled by higher traffic and Dubai’s continued economic and tourism boom.
Diversified Revenue Streams Expanding
Beyond tolls, Salik is gaining traction with its ancillary businesses.
- Fines collected rose 16.2% YoY to AED 68.4 million, with 786,000 net violations recorded
- Tag activation fees increased 17.4% YoY to AED 11.5 million
- Partnerships with Emaar Malls and Parkonic generated AED 2.8 million in parking revenue
- Vehicle insurance renewals via its collaboration with Liva Group contributed AED 0.5 million
These initiatives reflect Salik’s broader ambition to diversify income and innovate user services.
Financial Highlights
Salik’s profitability reached new highs, with EBITDA rising 37.9% YoY to AED 519.6 million, and EBITDA margin expanding to 69.1%, up from 67.1% a year earlier.
- Net profit before tax: AED 407.2 million, up 33.6% YoY
- Net profit after tax: AED 370.6 million, up 33.7% YoY
- Free cash flow: AED 626.7 million, marking a 77.8% YoY jump
- Free cash flow margin: 83.4%, up from 62.7% in Q1 2024
Strong Balance Sheet and Debt Management
Salik reduced its net debt by 10.6% to AED 4.65 billion in Q1 2025. Its net debt to EBITDA ratio now stands at 2.7x—well below the 5.0x debt covenant threshold.
Working capital remained negative at AED -681.2 million, consistent with FY2024, largely due to toll rights payments and tax provisions linked to the two new gates.
Innovation and Strategic Expansion
Salik has invested heavily in broadening its mobility footprint:
- Barrier-free parking is now fully operational at Dubai Mall
- Partnership with Parkonic is expanding Salik’s e-wallet integration across 107 locations in the UAE
- Insurance renewal service with Liva is gaining adoption through timely digital reminders
- Customized Salik Tags for corporate clients are in the pipeline
Salik also signed a Memorandum of Understanding with ENOC, aiming to simplify fuel payments using its e-wallet at petrol stations, using license plate recognition technology.
Workforce and Emiratization
The company grew its workforce by 29% YoY to 54 employees in Q1 2025, and achieved 29.6% Emiratization. Women now make up 20.4% of the workforce.
Salik maintains its full-year 2025 revenue guidance, expecting 28–29% YoY revenue growth, with EBITDA margins between 68–69%. Excluding the new toll gates, underlying revenue growth is expected to be 4–5% for the year.
