Dubai plans to list its Salik road toll system on the Dubai Financial Market as part of efforts to boost its stock market and attract more listings amid a growing appetite for initial public offerings in the region, the Dubai Securities and Exchange Higher Committee said.
The intended listing on DFM is part of the committee’s strategy to increase the size of the stock market in the emirate to Dh3 trillion ($816.8 billion) in the coming period, the committee said in a statement on Saturday.
“Within the Dubai Financial Markets and Exchanges Development Committee, we approved a plan to include the traffic tariff system Salik in the Dubai Financial Market,” Sheikh Maktoum bin Mohammed, Deputy Prime Minister and Minister of Finance, said in a tweet on Saturday.
“The Salik system is successful and investing in it holds great opportunities. The goal is to diversify the government companies that we list in the market in order to achieve the best return for investors within our markets.”
The Salik electronic system was introduced in 2007 by the Roads and Transport Authority to ease congestion on Sheikh Zayed Road and raise state revenue.
The eight Salik toll gates, which are located at Al Barsha, Al Garhoud, Al Maktoum, Al Mamzar South, Al Mamzar North, Al Safa, Airport Tunnel and Jebel Ali, also aim to encourage the use of public transportation and the use of alternative roads, the committee said.
There are 3 million vehicles registered in the Salik toll system, of which 1.8 million are in Dubai.
In January this year, Abu Dhabi also introduced its own toll gate system, which is switched on during peak hours through the week, except on Fridays.
Dubai is looking to boost its stock market and attract more listings as it seeks to tap into a growing appetite for initial public offerings in the region.
On November 2, the emirate revealed plans to list 10 state-owned companies as part of its strategy to double the size of itscapital marketto Dh3tn and attract foreign investment.
Dubai Water and Electricity Authority, the government-owned utility company, will be the first government entity to go public on the DFM in the “coming months”, Sheikh Maktoum said on Twitter at the time.
The government also approved a market-maker fund worth Dh2bn to encourage listings from sectors such as energy, logistics and retail.
The DFM exchange has rallied more than 24 per cent since the start of the year and is dominated by financial services and property companies.