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Dubai’s toll gate operator Salik has announced a significant partnership with Parkonic, marking its first major expansion beyond Dubai’s borders. The five-year agreement introduces Salik’s eWallet payment system to Parkonic’s extensive parking network across the UAE.

Partnership Details

The collaboration brings together two significant players in UAE’s transport infrastructure:

• Parkonic operates 107 locations across the UAE
• The system will cover 135,000 parking spaces
• Implementation expected in Q1-2025
• Revenue sharing model based on eWallet transactions

Ibrahim Sultan Al Haddad, Salik’s CEO, highlighted: “Our partnership with Parkonic will implement advanced parking payment solutions across approximately 135,000 spaces. This strategic move strengthens our ancillary revenue streams while expanding our service footprint.”

Financial Implications

The agreement’s financial structure includes:

• Parkonic will promote Salik as their preferred payment method
• Salik receives a percentage of parking revenues generated through its eWallet
• The partnership aligns with Salik’s revenue diversification strategy

Market Performance

Salik continues to show strong market presence:

• Current stock price: Dh5.6
• 52-week high: Dh5.89
• Listed on Dubai Financial Market (DFM)

Recent Developments

This expansion follows several strategic moves by Salik:

• Launch of two new toll gates in Dubai (November 24, 2024)
• Partnership with Liva for motor insurance solutions
• Focus on digital payment integration

Business Impact

The partnership represents a significant step in UAE’s smart city development:

• Expands digital payment infrastructure
• Enhances user convenience across emirates
• Strengthens Salik’s position in UAE’s transport ecosystem

Imad Alameddine, Parkonic’s CEO, emphasised the partnership’s alignment with UAE’s smart city initiatives, highlighting its role in advancing urban mobility solutions.

Note: This article was updated on November 28, 2024, with the latest information from Salik and Parkonic.

Additional Reading Material

• Dubai’s New Salik Gates: Residents Face Higher Daily Travel Costs in 2024
• Salik Partners with Liva: Digital Vehicle Insurance Services Launch in Dubai
• Dubai’s New Salik Gates: Residents Adjust Budgets as Travel Costs Rise 2024
• Dubai Expands Road Network: 2 New Solar-Powered Salik Gates Launch Nov 24
• Dubai Expands Road Network: Two New Salik Toll Gates Launch November 24