
Salik reports AED 751.6mln in revenue for Q1 2025, up 33.7% YoY
Total chargeable trips reached 158.0 million as the company implements Variable Pricing
Net Profit for the period increased 33.7% YoY to AED 370.6 million
Salik Company PJSC ('Salik' or the 'Company'), Dubai's exclusive toll gate operator, today announced its financial results for the three-month period ended March 31, 2025 ('Q1 2025'). Total revenue for the first quarter of 2025 grew by 33.7% YoY to reach AED 751.6 million. EBITDA for the first quarter increased 37.9% YoY to AED 519.6 million. In Salik's core tolling business, total chargeable trips reached 158.0 million following the introduction of variable pricing at the end of January 2025 and the launch of the two new toll gates in November 2024.
His Excellency Mattar Al Tayer, Chairman of the Board of Directors of Salik, said:
'Our exceptional Q1 performance reflects a continued focus on delivering long-term value to shareholders and our ambition to become a global leader in providing smart and sustainable mobility solutions. Dubai's robust economic growth – driven by the visionary leadership of the emirate, has played a key role in fueling our positive momentum and creating a strong foundation for long-term sustainable growth. We are pleased to build on the growth momentum we achieved in 2024, with robust top and bottom-line performance across both the core tolling business and our growing ancillary revenue streams, which continue to gain traction. We expect total revenue to grow 28-29% by the end of 2024 driven by the launch of operations in geographies outside of Dubai and the exploration of new partnerships to further enhance user experience and support both short and long-term earnings growth.'
Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented:
'We've entered 2025 with strong momentum, with our core tolling business continuing to thrive, bolstered by the opening of two new toll gates in late 2024. We have also maintained progress in our ancillary revenue streams, with both the Dubai Mall and Parkonic parking partnerships seeing good traction with users in the first quarter. Total chargeable trips, accounting for the new variable pricing, reached 158 million, with total revenue growth exceeding 30%. Profitability is also robust, with EBITDA growth of more than 35%, delivering an industry leading EBITDA margin of 69.1%. A healthy first quarter positions us well for the year ahead and 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.'
Continued strong performance drives revenue to AED 751.6 million in Q1 2025, up 33.7% year-on-year
The total number of trips, including discounted trips, made through Salik 's toll gates grew 35.1% YoY in Q1 2025, driven mainly by the introduction of two new toll gates which became operational in November 2024. The strong growth was further supported by Dubai's continued attraction of tourists and residents, growth in commercial activities, the implementation of structural reforms and strategic, targeted investment to drive economic diversification.
Total chargeable trips reached 158.0 million in Q1 2025, supported by the introduction of variable pricing at the end of January 2025 and the launch of the two new gates in November 2024. Within this, chargeable trips during the peak period (AED 6) totaled 39.3 million, with trips in the off-peak period (AED 4) 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 (AED 0) which totaled 11.2 million in Q1 2025.
Toll usage fees: revenue performance was strong during the first quarter, increasing 35.5% YoY to AED 665.6 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.
Fines: revenue from fines increased 16.2% YoY to AED 68.4 million in the first quarter. The number of net violations (accepted minus dismissed violations) grew 15.0% YoY in Q1 2025, reaching c.786,000, representing 0.4% of net toll traffic, with revenue from fines contributing 9.1% to total revenue in Q1 2025.
Tag activation fees: grew strongly in the first quarter, with revenue increasing 17.4% YoY to AED 11.5 million. Tag activation fees contributed 1.5% of total revenue in Q1 2025.
Ancillary Revenue Streams
Total revenue from Salik's parking partnerships with Emaar Malls and Parkonic reached AED 2.8 million in Q1 2025. The strong performance was mainly driven by a continued high number of transactions at Dubai Mall in the Q1 period. The barrier-free parking payment solution at Dubai Mall processed 100% seamless transactions, in line with Salik's ambitions to deliver a seamless paid parking solution to enhance guest experience, improve parking availability and streamline the payment process. Salik has also seen good traction in its partnership with Parkonic since the launch of the partnership in mid-February, with a gradual roll-out plan in place, where Salik expects to expand across all Parkonic locations during Q2 2025.
Salik's partnership with Liva Group to provide a streamlined vehicle insurance renewal process has gained good traction with consumers, delivering AED 0.5 million of revenue in Q1 2025.
Salik reaffirms its confidence in expanding its ancillary revenue streams over the medium-long-term. This follows the good progress made in 2024, including the successful collaboration with Emaar Malls, its partnership with Parkonic to integrate Salik's e-wallet system across 107 locations in the UAE and its collaboration with Liva Group to streamline the vehicle insurance renewal process. These partnerships reflect Salik's commitment to delivering innovative solutions that enhance user experience and enable Salik to grow and diversify its revenue streams, contributing to the long-term sustainability of the business.
Financial Performance
Strong profitability in Q1 2025, with EBITDA increasing 37.9% year-on-year, and a robust balance sheet position
Salik generated EBITDA of AED 519.6 million in Q1 2025, up 37.9% YoY from AED 376.9 million in Q1 2024, its strongest quarterly EBITDA performance since the Company's inception.
EBITDA margin reached 69.1% in Q1 2025, compared to 67.1% in Q1 2024, representing a 210 bps expansion YoY, supported by strong revenue growth in the period. The EBITDA margin also improved in comparison to 68.9% in FY24.
Salik's net profit before taxes totaled AED 407.2 million in Q1 2025, marking a strong 33.6% YoY increase, despite higher finance costs in the period. Net profit before tax increased 8.2% compared to Q4 2024.
Salik generated net profit after taxes of AED 370.6 million in Q1 2025, a 33.7% YoY increase. Net profit after taxes increased 8.2% compared to Q4 2024.
Summary of balance sheet: net debt of AED 4,648.8 million, with leverage of 2.7x Net Debt to EBITDA
Salik recorded a net working capital balance of AED -681.2 million as of March 31, 2025, equating to -22.7% as a percentage of annualized revenues, in line with FY 2024 performance. The growth in net working capital compared to prior quarters is mainly due to the RTA concession fees associated with the toll rights fee for the new toll gates, in addition to higher provisions for the corporate tax introduced in January 2024. As at March 31, 2025, net debt stood at AED 4,648.8 million, a 10.6% decrease from AED 5,198.6 million at the end of 2024, which was slightly higher due to a payable relating to the concessionary rights due to RTA for the two new toll gates. This translates to a trailing twelve-month net debt/EBITDA ratio of 2.7x in Q1 2025, significantly below the Company's debt covenant of 5.0x.
Summary of cash flow: free cash flow of AED 626.7 million, with a margin of 83.4% - a significant YoY improvement
Salik generated free cash flow of AED 626.7 million in Q1 2025, up 77.8% YoY, with a free cash flow margin of 83.4%, a significant improvement from 62.7% in Q1 2024. Compared to Q4 2024, free cash flow improved 55.7%, with the free cash flow margin improving from 61.8% in Q4 2024.
Becoming a global leader in smart and sustainable mobility solutions
Core Tolling Business
Implementation of variable pricing: As instructed by the RTA, based on the traffic studies and analysis, Salik introduced variable pricing on January 31, 2025. The variable pricing aims to enhance traffic flow across Dubai's road networks and improve transportation efficiency across the city.
Valuation of two new gates: Salik continues to make progress on its updated strategy, having introduced two new toll gates in Dubai. The Business Bay and Al Safa South gates have been in operation since November 24, 2024. This follows the combined valuation of the two new toll gates at a total of AED 2.734 billion, with the Business Bay Gate valued at AED 2.265 billion and the Al Safa South Gate valued at AED 469 million to be paid in equal instalments, every six months over a six-year period.
Ancillary Revenue Streams – recap on key partnerships and initiatives
Salik commenced seamless parking operations at Dubai Mall: this milestone marked Salik's first barrier-free parking payment solution, in partnership with Emaar Malls, across the Fashion, Grand and Cinema parking zones of Dubai Mall, where operations commenced on July 1, 2024.
Salik collaborated with Parkonic, one of the largest private parking operators in the UAE: the collaboration aims to enhance parking payment experiences across the UAE by integrating Salik's advanced e-Wallet system. The partnership is based on a five-year contract, during which Parkonic will integrate Salik's e-Wallet into the 107+ locations it operates and any future locations it may operate in the UAE. The agreement also marks the first time Salik has expanded its service offering outside of the Emirate of Dubai.
New LIVA motor insurance partnership: Salik partnered with LIVA (formerly RSA), a leading multi-line insurer in the GCC, to offer its customers access to market-leading insurance solutions. The partnership offers one-of-a-kind bespoke insurance solutions to drivers in the UAE, streamlining the renewal process for greater convenience and efficiency. Salik leverages its comprehensive database to provide value-added services to customers by sending timely renewal reminders to mitigate insurance coverage lapses. These notifications include a link directing customers to a LIVA landing page, where the motor insurance policy can be renewed in a few simple steps at a competitive price.
Customized Salik tags initiative: Salik is in the process of launching an innovative Customized Tags initiative, allowing corporate customers to personalize Salik tags with unique designs and messages. This initiative reflects Salik's commitment to enhancing customer experience and embracing innovation.
Other Achievements
Signed Memorandum of Understanding (MoU) with ENOC to introduce smart payment solutions that enhance the customer experience at ENOC petrol stations: Under the agreement, Salik and ENOC customers will enjoy a seamless experience when paying for fuel and other services including Autopro, Tasjeel and Zoom, with the option for deducting the transaction value from the customer's balance in their Salik e-wallet. This is enabled through use of cameras with technology for Automatic Number Plate Recognition (ANPR), and is the same proven technology now employed at parking locations including Dubai Mall and those operated by Parkonic.
Continued investment in human resources: in Q1 2025 Salik expanded its full-time workforce by 29% YoY to 54 personnel, representing 13% growth as compared to year-end of 2024, with the number of nationalities represented at 12. Salik continues to progress on Emiratization, attaining a level of 29.6% in Q1 2025, with the female-to-workforce ratio at 20.4% at the end of the first quarter.
Business Outlook
FY25 total revenue guidance remains unchanged, expected to grow 28-29% YoY, including the contribution of two new toll gates
Revenue growth: total revenue growth in FY25 is expected to be in the range of 28-29% year-on-year, including the impact of the two new gates introduced in November 2024 and the implementation of variable pricing on 31 January 2025. On a normalized basis, excluding the contribution from the two new gates, Salik expects total revenue to increase 4-5% YoY in FY25.
EBITDA margin: is expected to be in the range of 68-69%.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Khaleej Times
an hour ago
- Khaleej Times
Photos: Umm Al Quwain Crown Prince holds wedding reception at Amiri Diwan
On Tuesday, Sheikh Saud bin Rashid Al Mu'alla, Member of the Supreme Council and Ruler of Umm Al Quwain, hosted a reception on the occasion of the marriage contract of the Crown Prince. Sheikh Rashid bin Saud bin Rashid Al Mu'alla has married the daughter of Sheikh Mohammed bin Hamdan bin Hamdan Al Nahyan. Sheikh Rashid is also the Chairman of the Executive Council and holds a leading role in the emirate's governance and development. The event was held in the presence of Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, and Sheikh Ahmed bin Saud bin Rashid Al Mu'alla, Deputy Ruler of Umm Al Quwain. The Ruler of Umm Al Quwain received congratulations and blessings from the attending sheikhs and guests on the occasion. Take a look at some photographs from the evening: Among those who attended the reception were His Excellency Sheikh Humaid bin Ahmed Al Mu'alla; Sheikh Khalid bin Rashid Al Mu'alla, Head of the Amiri Diwan; Sheikh Maktoum bin Rashid Al Mu'alla; Sheikh Saif bin Rashid Al Mu'alla, Chairman of the Department of Economic Development; Sheikh Abdulaziz bin Humaid Al Nuaimi, Chairman of the Department of Land and Real Estate Regulation in Ajman; Sheikh Rashid bin Humaid Al Nuaimi, Chairman of the Municipality and Planning Department in Ajman; and a number of other sheikhs.


The National
2 hours ago
- The National
Lebanon looks to visitors from Gulf as it pushes to increase tourism
Lebanon is looking forward to a boost in tourism from Gulf countries as its new leadership works to rebuild ties after years of estrangement. The UAE and Kuwait have lifted bans on their citizens travelling to Lebanon after recent visits by President Joseph Aoun, who has also travelled to Saudi Arabia and Qatar after taking office in January. 'Lebanon is moving in the right direction, getting back to the Arab fold – and that's a Lebanese demand before anything else,' Fouad Dandan, Lebanon's ambassador to the UAE, told The National. Gulf tourists and investors − particularly from Saudi Arabia, Kuwait and the UAE − were significant contributors to the economy for decades before relations soured over the increasing influence of Iran over the country through Hezbollah. However, the Lebanese armed group and political party has been considerably weakened after a year-long war with Israel that led to them signing a peace deal last November. Preparations for an increase in arrivals are already under way, with an additional terminal to be built at Beirut's international airport. Plans for a new airport are also in the works, with Prime Minister Nawaf Salam announcing last month that the master plan would be unveiled shortly and the project thrown open to foreign investors. To be called the Rene Mouawad Airport, the new airport in Qlayaat 'could play a strategic role in facilitating cargo movement and affordable travel', Mr Salam told a conference in Beirut on Tuesday. At the same time, flag carrier Middle East Airlines is looking at setting up a low-cost carrier to serve destinations in the Middle East and Europe. The budget airline would be a wholly owned subsidiary of the wider MEA group but fully independent, Mohamad El Hout, chairman of MEA, told The National. He said MEA had seen 'significant growth in passenger traffic' this month, and was forecasting year-on-year growth of 10 per cent to 15 per cent in the second half of 2025. Given its history of conflict, Lebanon's security forces have also been rallied to encourage more foreign visitors. 'Preparations are under way to welcome tourists, though the state is working with a limited budget. Efforts have been made to improve visitors' experience. The road from the airport to Beirut has been repaired, and political banners and posters were removed months ago,' a senior security official involved in the operations told The National. 'What's new is the increased police presence near airport routes, especially at night. Police staffing has recently expanded to accommodate these new duties, and additional checkpoints are now active, with clear instructions to search suspicious vehicles and fine violators.' In the long run, drawing more visitors to its beaches, mountains and nightlife could play a key role in Lebanon's efforts to rebuild an economy hit by mismanagement, corruption and war, with the tourism sector estimated to account for 20 per cent of GDP. 'Eid Al Adha gives a glimpse of how this summer will look,' Jean Abboud, president of the Association of Travel and Tourist Agents in Lebanon, told The National. 'We're seeing new nationalities this year: Emiratis, Kuwaitis and Qataris. Gulf tourists tend to spend more time and money in the country. 'In May, airport traffic rose 11 per cent compared to the same period last year. The momentum is encouraging.'


Arabian Business
2 hours ago
- Arabian Business
Sheikh Hamdan meets UAE space sector startups as country emerges as out-of-this-world hub
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of the Supreme Space Council, met with representatives of leading space sector startups operating in the UAE. The meeting is part of. Sheikh Hamdan's keenness to advance the national space ecosystem and further promote its role as a global leader in the space industry. Sheikh Hamdan underscored the importance of strong partnerships and strategic collaboration between the public and private sectors as a foundation for developing an advanced and innovative space ecosystem. UAE space sector He highlighted that continuous innovation and long-term investment in future technologies are essential to this progress. Sheikh Hamdan also expressed confidence in the capabilities of UAE-based companies and entrepreneurs, noting their crucial role in driving the growth of the local space industry and strengthening the country's position as a leading global hub in this strategic field. Sheikh Hamdan also highlighted the space sector as a vital driver of the future and sustainable economic growth. He stressed the UAE's ongoing efforts to build a supportive environment that fosters the growth of national companies and unlock new opportunities for investment and innovation, boosting the country's global competitiveness and leadership in space. The private sector is leading the space scene in the UAE, reaffirming the maturity of national investments that have been established over the past three decades A number of the UAE based companies took part in the meeting, representing a wide range of specialisations, including: Locally developed Internet of Things (IoT) solutions Artificial intelligence and remote sensing Commercial space ecosystem development Edge computing for robotics applications High-resolution Earth observation via microsatellites AI systems Robotics Interactive simulation technologies Reusable space launch systems Participants shared insights into their current projects, long-term strategies, and future investment plans in support of the national economy. Discussions focused on strengthening public-private collaboration, expanding operations both locally and internationally, and exploring promising opportunities within the UAE's growing space sector—highlighting the private sector's central role in shaping a globally competitive and integrated space industry. UAE startups play crucial role in developing space sector Company representatives reaffirmed their commitment to the UAE's space ambitions and outlined plans to expand their operations within the country. They praised the UAE's flexible regulatory framework and advanced infrastructure as key enablers of sustained investment. Attendees also welcomed initiatives such as the Space Economic Zones Programme, which they said play a vital role in enabling collaboration and fostering long-term, sustainable growth across the space ecosystem. The meeting was attended by: Dr. Ahmad Belhoul Al Falasi, Minister of Sports, Secretary-General of the Supreme Space Council, and Chairman of the Board of Directors of the UAE Space Agency Khalid Al Awadi, founder of Rimal Ibrahim Al Obaidly, founder of Ardhiyat Al Ibdaa Information Solutions David Critchley, CEO of 4EI Dr. Hamdullah Mohib, CEO of Marlan Space Alex Lapir, CEO of Aliensense Abdulhalim Jallad, co-founder of Oryx Space