Dubai has started applying a 5% value-added tax to every road toll and parking fee, adding another income stream for the government. In recent years, monopoly toll operator Salik and fellow DFM-listed Parkin have steadily expanded their revenues by adding toll gates and parking facilities, along with dynamic pricing, and AI-powered monitoring. Fines are another major contributor: Parkin generated nearly a third of its revenue from parking violations last year, while Salik’s penalty income is also rising.
Both companies will likely report weaker earnings in the second quarter because the Iran war has reduced traffic flows and parking demand — in Dubai more than in other emirates, due to an exodus of expats and the absence of tourists. The new tax on Dubai tolls and parking, which began on June 1, will give the UAE government another cut from its roads that’s divorced from the financial performance of the operators.