Dubai's toll operator 'Salik' turns Public Joint Stock Company

Dubai's road toll operator Salik is now a Public Joint Stock Company (PJSC).

In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has issued Law No. (12) of 2022 establishing Salik as a PJSC.

The company will have legal, financial and administrative autonomy to carry out its activities and achieve its objectives.

As per the new law, Dubai Government owns all the shares of Salik Company.

The Executive Council of Dubai is authorised to decide the percentage of shares that can be offered for subscription either through an IPO or private placement.

If the company’s shares are offered for subscription, the Dubai Government should own shares worth a minimum of 60 per cent of the company’s capital.

. @HHShkMohd issues Law establishing Salik Company as a Public Joint Stock Company. #Dubai https://t.co/N4Ty176AhB

— Dubai Media Office (@DXBMediaOffice) June 15, 2022

Salik Company PJSC will have a term of 99 years, starting from the date of its registration in the Trade Register.

The term renews automatically for the same period as per the company’s articles of association.

The company, which has its headquarters in Dubai, can open branches and offices in Dubai and outside the emirate.

The Law also states that Dubai's Roads and Transport Authority (RTA) is authorised to outsource all or part of Salik’s functions related to the operation and management of toll gates, as per the concession contract signed between RTA and Salik.

The concession contract outlines the rights and obligations of each party, as well as the duration of the contract.

Pursuant to the Law, proceeds from toll gates, including fees and fines, will be transferred to the company.

Existing toll gates in Dubai can be removed or modified subject to a Decree issued by the Chairman of The Executive Council of Dubai.

New toll gates can also be added subject to a Decree issued by the Chairman of The Executive Council of Dubai, and after the RTA conducts a comprehensive traffic study in coordination with Salik.

Pursuant to the Law, Salik is exclusively authorised to operate, manage and develop the traffic toll system in Dubai.

It is also responsible for implementing legislation related to toll gates and the development, operation and management of traffic systems, as per contracts signed with competent authorities both in Dubai and outside the emirate.

The company also provides advisory services related to traffic regulations and the toll gate system and works with the RTA to conduct studies for planning and identifying new locations for toll gates.

Pursuant to the Law, the company’s Board of Directors will consist of a chairman and vice chairman, in addition to board members.

The first board of directors of the company will be formed according to a decision issued by the Chairman of The Executive Council of Dubai with the Board serving for a period of three years.

The new Law permits the transfer of some staff from the RTA to the new entity based on the directive of the Director General and Chairman of the Board of Executive Directors of the RTA.

The Law also authorises the RTA's Director General to nominate employees as judicial officers for recording violations of legislations the company is responsible for implementing.

The new Law is effective from the date of its issuance and will be published in the Official Gazette.