Dubai plans to list its automatic road toll collection system on the local stock exchange, the latest step in its attempt to increase liquidity on a bourse that’s lagged regional rivals over the past year.
The so-called Salik toll system is part of the Roads and Transport Authority and a key source of revenue for the emirate.
“Investing in it carries many opportunities,” Maktoum Bin Mohammed, Dubai’s deputy ruler and head of its financial market, said on Twitter.
HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, announced plans to list the road toll system “Salik” from #RTA on the Dubai Financial Market as part of the Dubai Securities and Exchange Higher Committee’s work in the Emirate. pic.twitter.com/2DAi1Cdzxd
— RTA (@rta_dubai) November 13, 2021
Salik, Arabic for open, is an automated system introduced in 2007. Each time a vehicle passes through one of the city’s eight toll points, AED4 ($1.09) is charged to a prepaid account – eliminating the need for cash or toll booths.
The listing is part of Dubai’s efforts to catch up with Riyadh and Abu Dhabi – the Middle East’s busiest IPO venues over the past year. It comes after the city said on November 2 that it would list the utility Dubai Electricity & Water Authority, another important source of government revenue, in what’s likely to be Dubai’s biggest share sale to date.
In all, Dubai plans to list as many as 10 state firms over the coming months.
Once the United Arab Emirates’ leading exchange by traded volume, Dubai’s bourse is now second to Abu Dhabi, which has had three IPOs this year. In contrast, Dubai has seen one listing since 2017, and a string of delistings that have dented investor confidence.
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