Dubai is offering an exciting investment opportunity through the Salik toll system. Salik is more than just a way to manage traffic. It’s a crucial part of Dubai’s infrastructure, generating steady income and contributing to the city’s economic development.

With its recent listing on the Dubai Financial Market, Salik has opened its doors to both individual and institutional investors. This is a prime time to invest in the future developments of Dubai. So, if you are an experienced investor or a beginner, understanding the potential of Salik could be a smart move.

We will explore what makes Salik a compelling investment. We will also learn how to invest in Salik and why it’s worth considering for your portfolio.

Is Salik the Next Big Investment Opportunity in Dubai?

The company Salik oversees the operation of toll gates in Dubai, aiming to optimize traffic management throughout the city. It’s a key part of Dubai’s transportation system, helping to manage traffic and generate revenue. Recently, you could start buying and selling Salik shares on the Dubai stock market.

When Salik first started selling shares, each share cost 2 Dirhams. They sold 1.5 billion shares, making 3 billion Dirhams. This was different because they set the price right away, not giving a range.

Investing in Salik has its good points. It has a long-term deal with the Dubai government, ensuring steady income. As Dubai’s economy grows, more people use the roads, which means more money for Salik.

However, there are risks. If the economy slows down, fewer people might use the roads, affecting Salik’s income. Also, new technology or changes in how people travel could reduce the need for toll roads.

Why to Invest In Salik?

There are plenty of reasons to invest in Salik:

Strong Financial Performance

Salik’s financial results for the first half of 2024 were outstanding, highlighting a positive trajectory in revenue and profitability. The company’s revenue increased by 5.6% to Dh1.1 billion, driven by a 4.9% increase in the number of vehicles using Dubai’s roads. This growth led to a 9.2% increase in net profit before tax, reaching Dh598.6 million.

Even after accounting for the new 9% corporate tax, Salik maintained a solid net profit of Dh544.8 million. These impressive results convinced the Board of Directors to approve a 100% dividend payout to shareholders amounting to 7.263 fils per share.

Strategic Expansion and Growth Initiatives

Salik is working hard to grow its business. It’s not just focusing on toll gates anymore. In July 2024, they partnered with Emaar Malls to offer new parking solutions. This option presents an excellent opportunity to make extra money.

Plus, they are planning to open two new Salik gates by the end of November 2024. These new projects show that Salik is committed to expanding its services and reaching more people. This could lead to more revenue and a stronger position in the market.

Record-Breaking Traffic and Revenue

Salik make money by charging drivers a toll fee to use the roads. In the first half of 2024, they earned more money from tolls, with a 4.9% increase. This represented a large share of their financial gains, comprising 87.1% of their total revenue.

The second quarter of the year was especially good, with a record number of 115.7 million trips made through the toll gates. This is a 1.6% increase compared to the same time last year.

Some toll gates, like Jebel Ali and Al Maktoum Bridge, saw a lot more traffic. This helped increase the overall revenue. It shows how important Salik is for Dubai’s transportation system.

Growing User Base

As Dubai’s population and number of visitors continue to grow, more and more people are using Salik’s toll system. In the first six months of 2024, Salik reported a 14.6% growth in active accounts, bringing the total to 2.5 million.

Additionally, the number of registered vehicles using the toll system grew by 8.8% to 4.2 million. This growth is a result of Dubai’s successful efforts to attract more residents, tourists, and businesses, leading to an increased need for awareness about Salik fines and how to avoid them while navigating the toll system.

Future Outlook

Salik is looking forward to future growth. They plan to add two new toll gates and improve roads in Dubai to make traffic flow better. With these plans and a recent fee reduction, Salik expects to earn more money. Soon, they will provide a new financial outlook for 2024, giving investors a better idea of how well they expect to do.

How To Invest In Salik?

Salik’s IPO

An Initial Public Offering (IPO) occurs when a company sells its shares to the public for the first time. It allows investors to acquire a stake in the company. Recently, Salik had its IPO giving people a chance to invest in its growth.

By investing in Salik, you’re not just buying shares; you are becoming a part-owner of a company that plays a crucial role in Dubai’s infrastructure.

Salik’s initial public offering will be priced at Dh2 per share, as confirmed by the company. It is a different approach compared to previous IPOs in Dubai, where a price range is usually given and the final price is confirmed later. Salik aims to raise about Dh3 billion by selling 1.5 billion shares, representing 20% of the company.

You can invest in Salik through IPO portal and banks including Emirates NBD and Abu Dhabi Commercial Bank. For investing or buying shares, you will need a National Investor Number (NIN) issued by the Dubai Financial Market. Once you have your NIN, you can work with your broker to place an order for Salik shares.

Investment Process

All the potential subscribers need to follow a structured process to invest in Salik. First, you will need to choose a bank or brokerage firm. Then, you have to submit an application to buy Salik shares. It’s important to note that many people are likely to want to buy Salik shares, so there might not be enough shares for everyone.

Through IPO Portal

Investing in the Salik IPO has been made easy. You can join the Emirates NBD IPO even if you do not hold an account with them.

Check your personal details and account information to make sure they are correct
Fill out the application form for subscribing to the Salik IPO
Make an instant payment through a secure payment gateway or complete a wire transfer

Note: Make sure you have a DFM NIN number. Open an Emirates NBD Securities account to automatically receive your National Investor Number (NIN) if you don’t have one already. Additionally, it will allow you to trade stocks and subscribe to IPOs including Salik.

Through Online Banking

If you prefer an online IPO payment for Salik shares, you can follow a simple process through your online banking platform.

Access online banking account using your credentials.
Check for the “Payments & Transfers” tab or a similar selection
Choose the specific option for IPO payments.
Input your National Investor Number (NIN) provided by the Dubai Financial Market (DFM).
If you’re using a broker, select them from the list provided.
Enter the amount you want to invest in Salik’s IPO.
Confirm the transaction with your authorization code or other security measures.
After completing the payment, you will receive a confirmation message that includes your IPO application and reference numbers.

Through Mobile Banking

You can easily invest in Salik shares using the Emirates NBD Mobile Banking app. Just follow a few steps process on your phone:

On your Emirates NBD banking app access the “Payments” section and click on “IPO”
Choose your preferred account from which you want to make the payment in the ‘From Account’ field
Select Salik from the list of available IPOs
Choose the appropriate category or tranche for your subscription
Input your National Investor Number (NIN) to verify your identity
Take a moment to read and consent to the provided ‘Terms and Conditions’
Choose your broker name and enter the amount you wish to invest in
Verify all details to confirm accuracy
Confirm your transaction by entering the authorization code now

Upon completing your IPO payment, you will receive a confirmation that includes a reference number and an application number.

Using ATM

You can also make the investment payment through ATMs:

Insert your debit card into the ATM and type in your PIN
Check for “IPO” and enroll yourself
Pick Salik from the list of IPOs
Type in your Investor Number and select the desired account
Set the amount you want to invest
Review the details and confirm your investment.
A confirmation message will pop up with all the details

In-Person Subscription Options

You can also invest in Salik’s IPO by visiting a bank branch in person. It allows you to talk directly to a bank representative and fill out your application. Emirates NBD is one of the banks where you can do this. Their branches have different opening hours, but most are open from 8 AM to 2 PM on weekdays.

Some branches have extended hours or operate on Saturdays. However, it’s important to check the specific hours for IPO subscriptions, as they might be shorter than regular banking hours.

Additionally, it’s a good idea to perform a Salik fine check if you have any unpaid fines for using tolls. It will help you avoid unexpected penalties while managing your investments effectively.

Conclusion

Salik has a strong performance and good growth potential, making it an attractive investment. To invest in Salik, you need to buy its shares during the IPO. The minimum investment for both individual investors and Salik staff is set at Dh 5,000. While institutional investors need to invest at least 1 million Dh.

To invest, contact your bank before the deadline and fill out a form. While investing in Salik can be a good way to make money in the long run, it’s important to remember that it’s not risk-free. To make a wise decision, research Salik or talk to a financial advisor. They will surely guide you through this.

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