Dubai’s Parkin looks at expansion into Saudi Arabia

Company partners with Batic to identify opportunities to expand paid parking services in kingdom

Parkin operates about 207,000 paid parking spaces in Dubai. Sarah Dea / The National

Parkin, the company set up to oversee parking operations in Dubai, has signed an initial agreement with Batic Investment and Logistics Company, a Saudi Arabian investment entity listed on the Tadawul exchange, to optimise traffic flow in the kingdom as it seeks to grow its international footprint.

The partnership aims to combine Parkin’s operational capabilities with the local public parking network managed by Smart City Solutions Company, a Batic subsidiary and Saudi Arabia’s largest paid public parking provider, the companies said in a statement on Monday.

This collaboration will focus on implementing digital technologies to optimise traffic flow and enhance user experience, it added.

Mohamed Al Ali, chief executive of Parkin, and Mohammed Al Zamil, managing director and group chief executive of Batic, sign an initial agreement to explore parking solutions in Saudi Arabia. Photo: Parkin

The companies will assess opportunities to expand paid parking services in the kingdom by collaborating with municipalities, real estate developers, operators of shopping centres, hotels, and other venues.

Mohamed Al Ali, chief executive of Parkin, said the partnership will deliver “scalable and customer-focused parking solutions” that will benefit both residents and visitors in the kingdom and support economic growth.

Parkin is the largest provider of paid public parking facilities and services in Dubai, operating about 207,000 paid parking spaces and accounting for more than 90 per cent of the emirate's on and off-street paid parking market. It operates about 180,000 on and off-street parking spaces, and close to 24,000 spaces across developer-owned parking lots.

The company's other revenue streams include enforcement and issuance of seasonal permits, parking reservations and other commercial activities.

The company started trading on the Dubai Financial Market in March, surging 30 per cent on its debut. As part of the emirate’s critical infrastructure, Parkin is central to Dubai’s growth plans, and its initial public offering is part of a strategy of growing the emirate's financial market to Dh3 trillion ($816.8 billion).

Shares of the company were trading at Dh4.78 at 12.25pm UAE time on Monday.

The agreement in Saudi Arabia represents “a key step” in Parkin’s international growth strategy and aligns with Batic’s commitment to maintain market share while advancing smart city initiatives under Saudi Vision 2030, said the statement.

The partnership will deliver scalable and customer-focused parking solutions that will benefit both residents and visitors in the kingdom

Mohamed Al Ali,
chief executive, Parkin

The collaboration will prioritise the adoption of advanced digital technologies, including artificial intelligence, real-time data analysis, digital gates, sensors and smart cameras to simplify parking, improve utilisation and reduce congestion, Parkin said.

The agreement enables both parties to evaluate collaboration opportunities, identify synergies and to seek any legal or regulatory necessary approvals.

Mohammed Al Zamil, managing director and group chief executive of Batic, said that the collaboration would enable the company to optimise the delivery of parking services and reduce congestion.

Smart City Solutions Company has a portfolio of 195,000 parking spaces across Riyadh, Dammam, Khobar, Dhahran and Buraydah, according to the statement.

The move to Saudi Arabia comes as Dubai’s Roads and Transport Authority introduced variable parking fees in areas operated by Parkin. It increased parking rates to Dh6 an hour for premium spaces and Dh4 an hour for public spaces during morning and evening peak hours. This will come into effect at the end of March.