Sheikh Mohammed issues law establishing Salik as public joint stock company
Now Reading
Sheikh Mohammed issues law establishing Salik as public joint stock company

Sheikh Mohammed issues law establishing Salik as public joint stock company

The Executive Council of Dubai is authorised to determine the percentage of shares that can be offered for subscription either through an IPO or private placement

Avatar
Salik

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (12) of 2022 to establish road toll operator Salik as a public joint stock company.

The company will have legal, financial and administrative autonomy to carry out its activities and achieve its objectives, in accordance with the provisions of the new law, the company’s articles of association and other relevant Dubai legislations.

The government of Dubai owns all the shares of Salik Company PJSC, while the Executive Council of Dubai is authorised to determine the percentage of shares offered for subscription either through an initial public offering (IPO) or private placement. In either case, the Dubai Government should own shares worth a minimum of 60 per cent of the company’s capital.

Effective from the registration date, Salik Company PJSC will have a term of 99 years, and will renew automatically for the same period as per the company’s articles of association.

The company, headquartered in Dubai, can open branches and offices in and outside the emirate. Meanwhile, the Roads and Transport Authority (RTA) is authorised to outsource all or part of Salik’s functions related to the operation and management of toll gates, as per the concession contract signed between RTA and Salik. All proceeds from toll gates, including fees and fines, will be transferred to the company.

Existing toll gates in Dubai can be removed or modified subject to a decree issued by the chairman of The Executive Council of Dubai, official news agency WAM reported. New toll gates can also be added subject to a decree issued by the chairman and after RTA conducts a comprehensive traffic study in coordination with Salik.

Salik is exclusively authorised to operate, manage and develop the traffic toll system in Dubai and is also responsible for implementing legislation related to toll gates and the development, operation and management of traffic systems, as per contracts signed with authorities both in Dubai and outside the emirate. The company also provides advisory services related to traffic regulations and the toll gate system and works with RTA to conduct studies for planning and identifying new locations for toll gates.

The first board of directors of the company will be formed according to a decision issued by the Chairman of The Executive Council of Dubai with the board serving for a period of three years.

Dubai announced the listing of 10 government and state-owned companies on the DFM last year, with the emirate aiming to increase the total volume of its stock markets to Dhs3tn.

Read: Dubai announces listing of 10 govt, state-owned companies on DFM

You might also like

© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top