Abu Dhabi 'Salik' will help improve road infrastructure, say experts



Experts have said that the introduction of road tolls in Abu Dhabi will help ease traffic on popular roads and improve infrastructure, but will also impact those on lower incomes.

A law issued by President Sheikh Khalifa on Sunday stipulated that the capital is to implement a tariff on certain roads, the details of which are yet to be determined by the Department of Transport.

According to Robert Hodges, the previous head of Emirates Driving Institute, a major driving instruction school, said tolls are a way for GCC governments to generate revenue streams. “In areas outside of the European Union," he said, "governments are more inclined to use tolls as a means of increasing revenue streams for governments or authorities in order to help balance the nation's finances, especially in the GCC.”

Mr Hodges also said that he expects the new tolls in Abu Dhabi to start at Dh4, which is equal with Dubai's 'Salik', but that eventually the price will rise.

“I would expect the [toll gates] to be ... Dh4 a gate, as in Dubai, and then to rise over a period of time to a higher figure, possibly to Dh10, as such tolls become understood and accepted.”

However, Mr Hodges said tolls tend to hit lower-income commuters harder than the richer parts of society who can easily afford the costs and that they should only be introduced after public transport has been improved.

“Unfortunately, lower paid people tend to have to commute longer distances each day to and from work and tolls act as a form of direct expenditure that impacts on their disposable capital.

“In good road planning, the creation of road taxes should come after reliable alternative transport modes have been made available to the lower-paid workers, such as light trains, metros, trams, quality buses, park and ride sites and ride-share lanes. Otherwise road tolls are just ineffective at anything other than collecting revenue.”

Thomas Edelmann, founder and managing director of Road Safety UAE, said that road tolls were an effective way to combat the problems thrown up by congestion.

He said: “Traffic congestion is an inconvenience to road users. It incurs a cost to society and increases the chances of misbehaviour in motorists – we have a tendency to misbehave when we get cornered.”

Road tolls, used to channel traffic away from roads with heavy frequency to those with less frequency to smooth the overall flow of traffic, are, said Mr Edelmann, “a fair way to charge motorists for infrastructure use."

"The more an individual drives on roads, the more of they pay road tolls. The funds raised can then be used to maintain roads and finance further extension of existing road infrastructure, which results in better and safer roads.”

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'Salik' traffic tolls coming to Abu Dhabi

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In the United Kingdom, the Congestion Charge is paid by motorists who enter central London during set times, which limits congestion, pollution and pushes people to use public transport. 
Motorists in the UK also pay a vehicle exercise duty, or road tax, to maintain the roads, reduce pollution and improve street lighting.

The electronic toll system Salik in Dubai, which was introduced in July 2007, is cashless and involves a tag that automatically charges a car when it enters a toll road. Motorists who cross a toll, but do not pay the fee can face fines in Abu Dhabi of upto Dh10,000.
A number of countries in Europe also introduced road tolls to improve their infrastructure and ease traffic, including France, Germany, Italy and Spain.

Thor: Love and Thunder

Director: Taika Waititi 

Stars: Chris Hemsworth, Natalie Portman, Christian Bale, Russell Crowe, Tessa Thompson, Taika Waititi

Rating: 4/5

Company profile

Name: Belong
Based: Dubai
Founders: Michael Askew and Matthew Gaziano
Sector: Technology
Total funding: $3.5 million from crowd funding and angel investors
Number of employees:
12

JOKE'S ON YOU

Google wasn't new to busting out April Fool's jokes: before the Gmail "prank", it tricked users with mind-reading MentalPlex responses and said well-fed pigeons were running its search engine operations .

In subsequent years, they announced home internet services through your toilet with its "patented GFlush system", made us believe the Moon's surface was made of cheese and unveiled a dating service in which they called founders Sergey Brin and Larry Page "Stanford PhD wannabes ".

But Gmail was all too real, purportedly inspired by one – a single – Google user complaining about the "poor quality of existing email services" and born "millions of M&Ms later".

Match info

Deccan Gladiators 87-8

Asif Khan 25, Dwayne Bravo 2-16

Maratha Arabians 89-2

Chadwick Walton 51 not out

Arabians won the final by eight wickets

COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
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How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal. 

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.” 

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.


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