Salik, the exclusive operator of toll gates in Dubai, announced its cooperation with Emaar Shopping Mall Management Company, to launch an efficient and seamless parking management system at The Dubai Mall.
According to the terms of the agreement, Salik technology will be activated to enable Dubai Mall visitors to experience smooth and barrier-free parking. Fees will be collected automatically, without tickets, by using an automatic license plate recognition system, and fees will be deducted from visitors’ accounts, in accordance with the business rules specified by Emaar for managing shopping malls.
The service is scheduled to be launched in The Dubai Mall by the third quarter of 2024, and determining Salik’s expected revenues will enable the mall management company, Emaar, to set the business rules for this project.
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Ibrahim Sultan Al Haddad, CEO and board member of Salik, said: “We are pleased to cooperate with Emaar to manage shopping centres in this pioneering initiative in one of Dubai’s most prominent and iconic destinations. This project is important for the company’s strategy in providing sustainable and smart mobility solutions to vehicle drivers in Dubai, as well as our goal to diversify sources of income.”
He added: “Salik” has advanced capabilities to provide a smooth and comfortable experience for customers, as the system provides the advantage of eliminating gates or barriers in the Dubai Mall parking lots, which helps reduce congestion and facilitate traffic for customers. We look forward to benefiting from the successes of this initiative to provide the service in other locations in the city.”
Salik has an exceptional database, which includes more than two million active accounts and 4 million active registered vehicles, which means that there is no great need to attract customers. More than 90% of Dubai’s vehicles are already registered with Salik, which will be responsible for designing, financing, developing, installing and managing the parking system, while The Dubai Mall will provide the required infrastructure and maintain the parking.
Ahmed Al Matrooshi, Member of the Executive Board of Directors of Emaar Properties and General Manager of Emaar Charitable Foundation, said: “We are happy to announce our cooperation with Salik, which has the ability to provide a smooth visit for visitors to the Dubai Mall. This cooperation stems from our commitment to constantly improving our guests’ experiences at The Dubai Mall, the most visited shopping center in the world. We are pleased to make parking service easier and smoother with the introduction of Salik’s solutions and expertise in the field of transportation. We are confident that this initiative will not only meet the expectations of our guests, but will also exceed them, enhancing the value of every visit and consolidating Dubai Mall’s position as a shopping and lifestyle destination.”
It should be noted that Salik is looking to expand in the field of private parking systems in Dubai, which are estimated at more than 50,000 spaces, as the company has a strong opportunity to expand in the field of paid private parking, and to explore the growth options available in this field, by introducing a system seamless control of access to residential and commercial parking lots, such as companies and malls, by using the Salik platform to collect fees via the application and plate number, which are an essential part of the company’s business model.
Earlier this year, Salik management confirmed its expectations for 2023, after achieving strong revenue growth in the third quarter, supported by a continued increase in the number of trips made through its eight toll gates, in addition to the strong performance of the profit margin before financing costs and taxes, depreciation and amortization. The company expects the number of revenue-generating traffic to grow by 9-10% in 2023, with an EBITDA margin of 66-67%.
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