Hussain Al Qemzi
Ahead of its IPO, Mattar Mohammed Al Tayer, Chairman of the Board of Directors of Salik, stated that the company has decided to list its shares in Dubai Financial Market to ensure its long-term access to capital markets and enable investors to invest in premium assets.
In an interview with the Emirates News Agency (WAM)), he confirmed that the offering of Salik shares on the Dubai Financial Market comes as part of the privatization program launched by the Emirate, in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
Besides the company’s shareholders accruing profits from buying shares, there are enormous economic gains stemming from large-scale private urban development, especially in transport. Cities can reap many benefits when encouraging private investment in transport infrastructure, such as roads, bridges, and public transport systems. These benefits include:
- Job Creation: Private sector urban growth usually involves large construction projects, creating numerous job opportunities. These new job opportunities reduce unemployment and bring about economic expansion.
- Increase Revenues and Taxes: Cities’ total tax revenues increase as a result of private investment in transport infrastructure. Property values rise as a result of the creation of new development projects due to easy access, which supports the finance, insurance, and retail sectors.
- Improve Connectivity: Investing in transportation infrastructure leads to improvements in connectivity within and between urban areas, enabling more efficient movement of goods and people. This benefits the productivity of both companies and individuals.
- Urban Revitalization: Urban areas that have not been exploited or have been neglected can be revitalized through inclusive urban development by facilitating access by investing in transport infrastructure. These efforts may include the construction of new roads or the expansion of public transport networks, as a result of which there may be a rise in property values and economic activity in those areas.
- Reduce Traffic Congestion: Traffic congestion is a widespread problem in many urban areas, and it can be minimized to some extent by strictly regulated transport systems. Urban development facilitates traffic, reduces travel times, and enhances productivity.
Building cross-sectoral transport systems that are sustainable and fair will benefit the city, its residents, and investors.