Dubai sets up new company to oversee parking

Parkin will have autonomy related to creating, planning, designing, operating and managing public parking spaces

The law permits people to own shares in Parkin through public or private subscription. Sarah Dea/The National
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Dubai has set up a company to oversee car park operations in the emirate under a law issued by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.

Parkin, a public joint stock company, will have the job of creating, planning, designing, operating and managing public parking spaces, the Dubai Media Office said on Wednesday.

The new company will have financial, administrative and legal autonomy to fulfil its responsibilities for 99 years, beginning from the date of its registration. It will be renewed for a similar period.

The law permits people to own shares in Parkin through public or private subscription although the ownership percentage of the Dubai government “must not fall below 60 per cent” of the company's capital when its shares are offered.

“The Executive Council of Dubai has the authority to determine the percentage of shares that may be transferred to third parties through public or private subscription,” it said.

It did not specify when or what percentage of shares the government plans to sell.

Under the new law, the Roads and Transport Authority will delegate responsibilities related to public and private parking, as well as the issuance of permits.

This handover of duties is to be reached by a franchise agreement to be finalised between the authority and Parkin, according to the statement.

Parkin will be responsible for issuing permits to individuals, enabling them to subscribe to public parking, utilise and operate it, and to reserve parking spaces.

It will also establish, design and management of private parking spaces, as well as investment in related business activities, among other responsibilities.

The board of the new company will be chaired by Ahmed Bahrozyan, while Ahmed Mahboub will serve as vice chairman. Other members of the board include Muna Al Osaimi, Nasser Abu Shehab, Alawi Al Sheikh, Mona Bajman, and Al Anoud Al Ameri.

Dubai toll operator Salik was established as a public joint stock company in June 2022, ahead of its initial public offering that September.

The company raised Dh3.73 billion from its IPO, which was more than 49 times oversubscribed across all tranches, with total gross demand at Dh184.2 billion.

The Dubai government sold more than 1.867 billion shares in the company, or 24.9 per cent, at Dh2 a share. The government retained a 75.1 per cent stake after the sale of the stake.

Dubai announced plans in November 2021 to list 10 state-owned companies to increase the size of its financial market to Dh3 trillion, as well as set up a Dh2 billion marketmaker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.

Four of the announced 10 state-owned enterprises listed on Dubai Financial Market in 2022.

The first was the listing of Dubai Electricity and Water Authority, which raised $6.1 billion after its offering size was more than doubled to 8.5 billion shares in response to strong investor demand.

State-owned Tecom and Empower collectively raised $2.2 billion in June and November 2022, respectively.

Last year, the fifth state-backed entity, Dubai Taxi Company, raised Dh1.2 billion from its IPO in December after selling 624.75 million shares, equivalent to 24.99 per cent of the company's total issued share capital.

The UAE markets have been recording strong listing activity amid increasing investor interest and a public mandate aimed at supporting IPOs to boost liquidity in local bourses.

There were a total of 29 IPOs with total proceeds of $5.8 billion in the first nine months of the year in the Mena region, with all the listing activity taking place in the GCC, consultancy EY said in its third quarter report.

Updated: January 03, 2024, 12:13 PM