Salik to Distribute Full 100% Profit as Dividend, Amounting to Dh1.16 Billion
Dubai’s toll-gate operator, Salik, has announced an impressive dividend payout of Dh1.16 billion for the fiscal year 2024, marking a significant reward for its shareholders.
This translates to a dividend of 15.52 fils per share, reflecting the company’s robust financial performance and commitment to returning profits to investors.
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Strong Financial Performance
Salik’s decision to pay out 100% of its net profit aligns with its established dividend strategy, which aims to provide maximum returns to shareholders.
In comparison, the company distributed Dh1.03 billion in dividends for the previous fiscal year.
The firm has shown notable growth, with revenues swelling to Dh2.3 billion in 2024—an 8.7% increase year-on-year. This growth was bolstered by a surge in revenue-generating trips, which reached 498.1 million, up by 8%.
Growth Prospects
Looking ahead, Salik is optimistic about its growth trajectory. The company plans to enhance its revenue streams through the introduction of new toll gates and variable usage rates, which were implemented in late January.
Mattar Al Tayer, Chairman of Salik, emphasized the potential for further diversification of revenues and improvements in financial returns.
CEO Ibrahim Sultan Al Haddad echoed this sentiment, projecting a revenue growth of 28-29% for FY25, alongside an EBITDA margin of 68-69%.
This optimistic outlook is underpinned by the early success of newly introduced pricing structures and the performance of two new toll gates.
Ancillary Revenue Opportunities
Salik is also exploring additional revenue opportunities beyond toll collections. A notable example is its collaboration with Emaar Malls, which generated Dh5.8 million through a barrier-free parking payment solution at The Dubai Mall.
The company is expanding its service offerings by integrating its e-wallet system across multiple parking locations in the UAE and streamlining vehicle insurance renewals in partnership with Liva Group.
With a strong financial foundation and ambitious growth plans, Salik is poised to continue delivering value to its shareholders.
The decision to distribute 100% of its net profit as dividends not only showcases the company’s financial health but also reinforces its commitment to its investors as it navigates the evolving landscape of Dubai’s transport infrastructure.
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