Dubai to raise Salik toll gate prices during rush hour

LATEST: Dubai motorists brace for new road tolls and parking fees

Dubai is to increase the cost for drivers to pass through the city's toll gates for the first time, from Dh4 to Dh6 during peak hours.

The emirate's transport authority said the increase would be enforced between 6am to 10am and 4pm to 8pm. Off-peak charges, between 10am and 4pm and from 8pm to 1am will remain at Dh4.

The gates will be free to cross between 1am and 6am. The toll will also be Dh4 on Sundays, excluding public holidays, special occasions or major events.

The decision came days after two more Salik gates opened in Dubai. The variable rates will start at the end of January, and are part of a “comprehensive strategy to enhance traffic flow”, the Roads and Transport Authority said.

The RTA has also increased parking rates, to Dh6 an hour for premium spaces and Dh4 an hour for public spaces during morning and evening peak hours. This will come into effect at the end of March.

The tariffs will remain unchanged during off-peak hours. Parking will be free from 10pm to 8am and on Sundays.

The authority also raised parking charges around event zones to Dh25 an hour. This will be introduced at first around Dubai World Trade Centre in February.

Salik reports Dh822m net profit in 9 months

Salik recorded a nearly 9 per cent rise in its third-quarter profit after tax. Net profit in the three months until the end of September climbed 8.8 per cent annually to Dh277.3 million ($75.5 million), the company said in its filing to the Dubai Financial Market, where its shares trade.

Revenue for the quarter increased 7.3 per cent to Dh546.1 million, with earnings before interest, taxes, depreciation and amortisation (ebitda) jumping 14 per cent to Dh376.7 million.

Toll use revenue rose 5.7 per cent annually to Dh468.4 million, while revenue from fines and penalties in the third quarter rose almost 8 per cent to Dh58.7 million. The number of net violations grew 0.8 per cent to hit about 670,000 during the quarter.

For the first nine months of the year, net profit was up 2.4 per cent annually at Dh822 million, with revenue 6.2 per cent higher at Dh1.64 billion. Toll use revenue grew 5.1 per cent on an annual basis to Dh1.42 billion.

Fines and penalties increased 7.6 per cent to Dh174.8 million, contributing 10.7 per cent to the total revenue during the period, while ebitda leapt nearly 9 per cent to Dh1.12 billion.