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Salik’s next on the IPO highwayMENA

Salik’s next on the IPO highway

Dubai’s Salik will soon see its name rolling across the bright tickers of the Dubai Financial Market. The plan to list the toll road system was announced on Twitter (TWTR) by deputy ruler Sheikh Maktoum Bin Mohammed over the weekend.

The Salik toll road system was launched by Dubai’s Roads and Transport Authority back in 2007 to help with traffic congestion issues on the Sheikh Zayed highway as well as encourage the use of public transportation. The state-owned company has also become an important source of government revenue. Salik now operates eight toll gates across the emirate and has 3 million registered vehicles, with more than half of these being registered in Dubai.

Salik has been the second government-linked company selected for listing after the Dubai Electricity and Water Authority was chosen earlier this month.

why it matters

By listing a total of ten state-owned companies, Dubai is hoping to grow the DFM and make it more competitive with neighboring bourses in Abu Dhabi and Saudi Arabia. The plan is to double the size of the stock market to $816.8b.