Salik price rise: Dubai motorists brace for new road tolls and parking fees


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Increasing the cost of Salik toll gates and parking during rush hour is likely to see an eventual reduction in the level of congestion on Dubai's main roads, transport experts have said.

The emirate's transport authority announced on Thursday that it would be increasing the cost for motorists to pass through the city's toll gates, from Dh4 to Dh6 during peak hours. This was followed by an announcement that parking in the city would also increase in cost to Dh6 an hour for premium spaces and Dh4 an hour for public spaces, during morning and evening peak hours.

"This [increase in fees] ticks multiple boxes," said Thomas Edelmann, managing director of Road Safety UAE.

"It sends out a strong message and hopefully will encourage people to be a bit more creative in how they travel and to consider not using their cars during rush hour. If you look at the cars on the roads during this period, there are a lot of vehicles with just one person inside.

"If you look at traffic in the mornings, ideally we would like to see more children travelling in school buses. If each school bus was full with 30 to 40 children, it would mean 30 to 40 fewer cars on the roads at the same time."

Another expert said the new fees could lead to motorists changing their habits to avoid being hit in the pocket.

"This might lead to behavioural changes where drivers may adjust their commute times, either leaving earlier or later than usual and considering alternative modes of transport where drivers would be encouraged to carpool, use public buses and the metro," said Dr Aseel Takshe, dean of the School of Environment and Health Sciences at Canadian University Dubai.

"This could have a positive impact on the traffic with fewer cars. This can also then mean that other roads that are toll free might witness more congestion and longer travel time. The increase in tolls can be utilised to maintain and improve road infrastructure where this decision can be part of a broader strategy to preserve the roads’ infrastructure and sustainability."

Roads such as Al Wasl Road, Al Khail Road and Sheikh Mohamed bin Zayed Road could be among those that see extra congestion as a result of the Salik changes.

How do the new Salik fees work?

  • The emirate's transport authority said the increase would be enforced between 6am to 10am and 4pm to 8pm. Off-peak charges, between 10am and 4pm and from 8pm to 1am will remain at Dh4.
  • The gates will be free to cross between 1am and 6am. The toll will also be Dh4 on Sundays, excluding public holidays, special occasions or major events.
  • The variable rates will start at the end of January.

What about the new parking fees?

  • Dh6 per hour during peak times from 8am to 10am and 4pm to 8pm in premium parking locations. Dh4 at other locations during this time.
  • Tariffs remain unchanged from 10am to 4pm and 8pm to 10pm with free parking overnight from 10pm to 8am and all day Sunday.
Salik fees will increase in Dubai from the end of January. Photo Pawan Singh / The National
Salik fees will increase in Dubai from the end of January. Photo Pawan Singh / The National

What are the premium parking locations?

"The locations for premium parking spaces were selected based on three criteria: first, ease of access to the area using public transport, such as areas within 500 metres of a metro station; second, areas with high parking occupancy during peak periods; and third, density and congestion, such as markets and commercial activity zones," said Eng Mohamed Abdulla Al Ali, chief executive of paid parking facilitators Parkin.

"It was clarified that premium parking spaces include, for example, commercial areas in parts of Deira and Bur Dubai, Downtown Dubai, Business Bay, Jumeirah and Al Wasl Road and other locations."

How have motorists reacted?

The National spoke to people who use Salik tolls most days on their commute from Sharjah to Dubai. They said they would have little option but to pay the extra cost, given the alternative routes were simply too long.

Yaser Msabbeh, a 49-year-old Jordanian who lives in Sharjah, commutes daily to the Al Wasl area in Dubai for work, passing through at least two Salik toll gates in each direction.

“With each gate charging Dh4, my daily toll expenses total Dh16, or about Dh352 monthly,” he said. “The new fees are a strain on my daily expenses. Everything is expensive now, rents are going up and so are the general living costs. We’re barely making ends meet as it is.”

He considered starting using Sheikh Mohamed bin Zayed Road as an alternative route. “But it’s in the opposite direction, and it would add a minimum of one hour to my daily commute," he said.

Jordanian Munawar Hamzah, 50, drives back and forth from Sharjah to her children’s school in Dubai’s Al Qusais. She said what should be a 10-minute drive often stretches to 45 minutes due to traffic.

“Every school day, I pass the Salik gate on my way to drop them off in the morning and again when I pick them up at around 3pm. I already pay eight dirhams each way, which adds up to 16 dirhams daily," she said.

"What may seem like a small amount to some really adds up over time. Currently, I pay around Dh320 a month for a standard 20-school-day month. The increase brings my daily total to Dh20 and my monthly expense to Dh400, that's a 25 per cent increase we will honestly struggle to come up with."

The only viable alternative route would double her commuting time, she added.

Earlier this month, the emirate's government released the results of surveys showing flexible and remote-working policies can ease congestion on Dubai roads, cutting peak-hour traffic by up to 30 per cent.

The surveys, conducted by the Roads and Transport Authority and the Dubai Government Human Resources Department looked at how flexible working hours, with a two-hour start window, and four to five days of remote working per month across both the private and public sectors in Dubai, impacted traffic.

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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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Goalkeepers: Franco Armani, Agustin Marchesin, Esteban Andrada
Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco
Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria
Forwards: Lionel Messi, Sergio Aguero, Lautaro Martinez, Paulo Dybala, Matias Suarez

SPECS
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PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

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1. Black holes are objects whose gravity is so strong not even light can escape their pull

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4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Kamindu Mendis bio

Full name: Pasqual Handi Kamindu Dilanka Mendis

Born: September 30, 1998

Age: 20 years and 26 days

Nationality: Sri Lankan

Major teams Sri Lanka's Under 19 team

Batting style: Left-hander

Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Director: Todd Phillips 

Rating: 2/5

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

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Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

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1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates

Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.

Favourite pastime: travelling and experiencing different cultures across the globe.

Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.

Favourite Movie: Mona Lisa Smile 

Favourite Author: Kahlil Gibran

Favourite Artist: Meryl Streep

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Most sixes: 292 – Chris Gayle

Most fours: 491 – Gautam Gambhir

Highest individual score: 175 not out – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)

Highest strike-rate: 177.29 – Andre Russell

Highest strike-rate in an innings: 422.22 – Chris Morris (for Delhi Daredevils against Rising Pune Supergiant in 2017)

Highest average: 52.16 – Vijay Shankar

Most centuries: 6 – Chris Gayle

Most fifties: 36 – Gautam Gambhir

Fastest hundred (balls faced): 30 – Chris Gayle (for Royal Challengers Bangalore against Pune Warriors in 2013)

Fastest fifty (balls faced): 14 – Lokesh Rahul (for Kings XI Punjab against Delhi Daredevils in 2018)

 

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Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain

West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership

UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes

UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II

UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby

The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km

Disclaimer

Director: Alfonso Cuaron 

Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

Rating: 4/5

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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
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What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
MATCH INFO

Manchester City 6 Huddersfield Town 1
Man City: Agüero (25', 35', 75'), Jesus (31'), Silva (48'), Kongolo (84' og)
Huddersfield: Stankovic (43')

RESULTS - ELITE MEN

1. Henri Schoeman (RSA) 57:03
2. Mario Mola (ESP) 57:09
3. Vincent Luis (FRA) 57:25
4. Leo Bergere (FRA)57:34
5. Jacob Birtwhistle (AUS) 57:40    
6. Joao Silva (POR) 57:45   
7. Jonathan Brownlee (GBR) 57:56
8. Adrien Briffod (SUI) 57:57           
9. Gustav Iden (NOR) 57:58            
10. Richard Murray (RSA) 57:59       

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  • King Charles - replica of President Eisenhower Sword
  • Queen Camilla -  Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag
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Updated: November 29, 2024, 12:47 PM