Dubai: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai issued a Law on Wednesday to establish 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 line with the provisions of the new Law, and other relevant Dubai legislations.
Under the new law, existing toll gates in Dubai can be removed or modified and new toll gates can also be added subject to a Decree issued by the Chairman of The Executive Council of Dubai, and after RTA conducts a comprehensive traffic study in coordination with Salik.
Salik Company PJSC will have a term of 99 years, starting from the date of its registration in the Trade Register. The term renews automatically for the same period as per the company’s articles of association. The company, which has its headquarters in Dubai, can open branches and offices in Dubai and outside the emirate.
IPO route
According to the Law, Dubai Government owns all the shares of Salik Company PJSC. The Executive Council of Dubai is authorised to determine the percentage of shares that can be offered for a subscription either through an initial public offering (IPO) or private placement.
If the company’s shares are offered for subscription in a public offering or private placement, the Dubai Government should own shares worth a minimum of 60 per cent of the company’s capital.
Outsourcing
The Law also states that the Roads and Transport Authority (RTA) in Dubai is authorised to outsource Salik’s functions related to the operation and management of toll gates (as per the concession contract signed between RTA and Salik). The concession contract outlines the rights and obligations of each party, as well as the duration of the contract.
As per the Law, proceeds from toll gates, including fees and fines, will be transferred to the company, as per the concession contract signed between RTA and Salik.
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.
New board in place
As per the latest directives, the company’s Board of Directors will consist of a chairman and vice chairman, in addition to board members. 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. The Board serves for a period of three years.
The new Law permits the transfer of some staff from RTA to the new entity. The director-general and chairman of the Board of Executive Directors of RTA will issue a decision on the staff who can be transferred to the new company without any prejudice to their rights.
The Law also authorises the director-general and chairman of the Board of Executive Directors of RTA, to nominate employees as judicial officers for recording violations of legislations the company is responsible for implementing.
The Law also annuls any other legislation that may contradict it. The new Law is effective from the date of its issuance and will be published in the Official Gazette.
