Dubai’s toll gate system might soon see a shift to dynamic pricing as the current Dh4 rate has lost its effectiveness in managing traffic, according to a senior official.
Ibrahim Alhaddad, CEO of Salik, highlighted in a Khaleej Times report the need for a new pricing strategy during the Investor Conference Call on Wednesday.
“Studies show that Dh4 lost a lot of its momentum and impact on traffic. There is a need to apply dynamic pricing, which varies depending on the time of the day,” Alhaddad said. He also mentioned that the Roads and Transport Authority (RTA) had previously discussed the possibility of dynamic pricing, although no specific timeline for its implementation was given.
The proposed dynamic pricing model would adjust toll rates based on the time of day, potentially exempting charges during off-peak hours and increasing them during peak times to help ease congestion. Salik stated in its IPO announcement that the RTA might implement this strategy to optimize toll rates, charging more during peak hours or for specific lanes.
Alhaddad added that before any changes are made, Salik would review the details and financial impacts, with the proposal then being submitted to the Dubai Executive Council for approval.
Maged Ibrahim, Chief Finance Officer of Salik, also addressed concerns during the call regarding the impact of the unprecedented rain in April 2024. He assured that Salik’s infrastructure was unaffected, and the toll gates operated normally despite the weather. “We saw an increase in demand following the storm, which somehow compensated for the impact that we had during those 3-4 days of the storm,” Ibrahim noted.