Dubai’s road toll system is set for another five years of technology upgrades after Salik Company PJSC renewed its contract with US tolling specialist TransCore, with artificial intelligence and advanced digital solutions expected to form part of the next phase of development.
The renewal keeps TransCore involved in the operation and evolution of Dubai’s tolling system, a partnership that dates back to 2006 when the US company helped design and develop the emirate’s original tolling infrastructure.
For Dubai motorists, the agreement is significant because it is not limited to maintaining existing toll-gate technology. Salik said the new five-year arrangement will support system upgrades, operational improvements and the development of digital capabilities as Dubai expands its smart mobility ecosystem.
What the Salik TransCore renewal means for Dubai’s tolling system
The renewed Salik TransCore contract will cover the continued development of the systems and technologies underpinning tolling operations.
A key focus will be the use of artificial intelligence (AI) and other advanced digital tools. Salik said the two companies will explore ways to apply these technologies to improve operational efficiency, system performance and the ability of the tolling network to meet future mobility requirements.
The agreement also introduces enhanced contractual, operational and regulatory requirements covering areas including cybersecurity, sustainability, governance, maintenance and business continuity.
Salik said the contract provides for system upgrades that can accommodate its existing services as well as future initiatives and expansion plans.
Will the new contract increase Salik’s operating costs?
The company said there is no material change expected in the financial impact of the renewed agreement compared with the previous contract.
Salik expects annual operating expenses associated with the contract to remain at approximately 5% to 5.5% of its total annual revenues.
That means the technology upgrade programme is being introduced while the company expects its annual operating-cost ratio under the contract to remain broadly similar to the previous arrangement.
Salik wants to expand beyond road tolls
The agreement also comes as Salik develops its role beyond its traditional road-toll business.
The company said the renewed technology partnership will support the development of Salik as an integrated payment platform, with applications extending across mobility services. These already include parking payments, while the company said it is considering existing and future services that could be added to the platform.
For customers, the objective is to make payments across different mobility services more seamless rather than limiting Salik’s technology to toll-gate transactions.
This could become increasingly relevant as Dubai develops a more digitally connected transport and mobility network.
A partnership dating back to 2006
The relationship between Salik and TransCore is not new. TransCore has worked with Dubai’s tolling system since 2006, when it participated in the design and development of the original system.
The scope of the partnership subsequently expanded as Dubai’s tolling infrastructure developed and its operational and technological requirements changed.
The latest five-year renewal therefore extends a collaboration that has been running for two decades and places greater emphasis on technology, cybersecurity, AI and future system requirements.
What comes next for Dubai’s smart mobility network?
The renewed contract gives Salik a technology partner for the next stage of development as the company looks to upgrade its existing infrastructure and broaden its mobility services.
Salik CEO Ibrahim Al Haddad said the company intends to use AI, advanced technologies and digital solutions to improve operational performance while expanding the application of its platform across mobility services.
TransCore CEO Whitt Hall said the company would continue supporting Salik’s plans to develop Dubai’s tolling system and contribute its technology and tolling expertise to the emirate’s smart and sustainable mobility ambitions.
For Dubai residents and businesses, the immediate takeaway is that the renewal is primarily about technology and infrastructure rather than a change to the tolling system’s financial model. The longer-term focus is on making the underlying system more adaptable while enabling Salik to play a wider role in digital mobility payments.
tanvir@dubainewsweek.com
