Image credit: Sourced from Emaar Properties
Salik, Dubai’s exclusive toll gate operator, has announced a new initiative with Emaar Malls Management, a division of Emaar Properties, to revamp the parking management system at the Dubai Mall.
Under the terms of the agreement, Salik will deploy its technology throughout the Dubai Mall parking and change the way customers pay for their visit.
According to a statement released by Salik, the new platform “Will feature automatic fee collection for ticketless parking, using vehicle plate recognition to deduct fees from the Salik user accounts of vehicles based on the business rules defined by Emaar Malls.”
The system is expected to be operational in Dubai Mall by Q3 2024 and Salik’s expected revenue may be determined after Emaar Malls finalises the business rules for this project.
Ahmed Almatrooshi, Emaar Properties, Executive Board member and general director of Emaar Foundation said, “We are pleased to announce our collaboration with Salik, who has the ability to provide our customers a seamless journey when visiting Dubai Mall.
“This collaboration stems from our commitment to continuously improve the experiences of our guests at Dubai Mall, the world’s most visited mall. We’re pleased to see that parking will be easier and more user-friendly with the introduction of Salik’s transportation solution and expertise. We believe that this initiative will not only meet, but also exceed, our guests’ expectations, adding value to each visit and reinforcing Dubai Mall’s position as the premier shopping and lifestyle destination.”
Why is Salik entering the private parking space?
In its release, announcing the partnership, Salik said that it sees a compelling business opportunity and is actively exploring options for growth in the private parking market in Dubai. This market is currently estimated at over 50,000 parking spaces, and comprises of residential and institutional parking (e.g., malls and businesses) as well as a platform for fee collection via app and registration plate, both of which are core to the existing business.
Additionally, Salik commands an exceptionally high vehicle penetration rate across the city.
The toll operator said “With over 2 million registered active accounts and 4 million active vehicles, no major customer acquisition will be part of the transition at the retail destination.” It added that over 90 per cent of Dubai vehicles are already registered in its data base.
Ibrahim Sultan Al Haddad, CEO and Board Member of Salik, underscored the diversifaction strategy by highlighting the move towards seamless and sustainable mobility solutions. “We are delighted to be partnering with Emaar Malls on this exciting initiative at one of Dubai’s most iconic destinations. The project is important for our strategy to offer sustainable and smart mobility solutions to drivers in Dubai, as well as our objective to diversify into complimentary revenue streams.
He added, Salik is ideally placed to provide this seamless and convenient customer journey. “The solution eliminates the need for gates or barriers at Dubai Mall, helping to minimise congestion and traffic for the customers. We are looking forward to building on the successes of this initiative to expand the offering to other locations around the city.”
Earlier in the year, Salik’s management reiterated its full year outlook for 2023, having delivered strong revenue growth in the third quarter, supported by a continued increase in the number of trips made through its eight toll gates coupled with robust EBITDA margin performance.
The company expects underlying revenue-generating trips to grow 9-10 per cent in 2023, with an EBITDA margin in the range of 66-67 per cent.
How does it affect you?
Salik will be responsible for designing, financing, developing, installing and managing the parking management system, while Dubai Mall will provide the required local infrastructure, office space and car park maintenance.
The new system will bring in automatic fee collection for those using the mall parking.
The automatic fee collection for ticketless parking will be charged using vehicle plate recognition registered in the Salik database.
The revamped infrastructure is also expected to bring in barrier-free parking at the retail venue.
Charges are yet to be defined by Emaar Malls but fees will be deducted from the Salik user’s account.
Al Haddad said, “Salik is ideally placed to provide this seamless and convenient customer journey, with the solution eliminating the need for gates or barriers at Dubai Mall, helping to minimise congestion and traffic for the customers.
“We are looking forward to building on the successes of this initiative to expand the offering to other locations around the city,” he added.