The demand for parking in Dubai is expected to grow by 60 per cent by 2033, Parkin company — the largest provider of paid parking facilities and services in the Emirate — said on Tuesday. Developing new paid spaces across the Emirate to meet this demand is among the key growth drivers for the company. This could mean more paid parking spaces in the city.
Another growth opportunity is “effectively implementing tariff optimisation”. This includes reclassifying some standard tariff zones as “premium” ones based on occupancy rates in certain areas. Premium zones could command higher parking fees.
According to the company, it will also explore multiple opportunities to expand current agreements and establish new ones with private developers across Dubai as the city expands.
All areas that currently enjoy free parking – at the moment – will remain free and the decision to make them paid will be under the Roads and Transport Authority (RTA), a senior official told Khaleej Times.
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Supply and demand
Ahmed Hashem Bahrozyan, chairman of Parkin’s Board of Directors, said implementing paid parking is dependent on the demand. “If a certain community or area grows, and there is a need to have paid parking to (regulate supply and demand), we will study to implement paid parking services.”
Parkin has a 49-year concession agreement with the RTA that gives the company exclusive rights to operate all paid public on-street parking; off-street parking; and public multi-storey car parks.
On Tuesday, Parkin announced its intention to proceed with an initial public offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
As on December 31, Parkin operated approximately 197,000 paid parking spaces in Dubai. The company is responsible for the enforcement and issuance of fines within these parking facilities as well as its collection.
Expanding fines collection
The company will invest in technology to “further expand enforcement capabilities to increase customer compliance”.
Parkin is the only provider in Dubai with the right to enforce related fines. About 23 per cent of its revenue is generated from enforcement and the collection of fines. It had a 99 per cent collection rate on fines issued to UAE vehicles in 2023.
The company has digitised surveillance and enforcement, including the roll out of smart parking inspection scan cars and smart parking lots.
About 56 per cent of the company’s revenue is generated from payments on parking. Parking spaces are differentiated across 13 zones with tariffs determined by several factors including the location; type of parking facilities; and activity rates within that zone.
About 17 per cent of Parkin’s revenue comes from seasonal cards, permits and reservation services that are paid fully upfront.