With the growth of electric vehicles (EV) in Dubai, Parkin PJSC – operator of public parking spaces across the emirate – is exploring opportunities for monetisation in the EV sector, the company said on Tuesday.
Effective implementation of tariff optimisation is a key growth opportunity for Parkin, which announced expanding its business and services, following the launch of an initial public offering (IPO) and listing on the Dubai Financial Market (DFM).
Free for a limited time
Currently, there are public parking spaces allocated for free for a limited time across Dubai for electric cars. These parking spaces – painted in green to signify its exclusive use for eco-friendly vehicles – can only be used for a maximum of four hours at a time.
Aside from public parking spaces, several malls, offices and government compounds also have spots reserved for EVs. A fine of Dh1,000 fine is given to non-EV cars that occupy these reserved green parking slots.
Parkin, which currently manages a combined 197,000 paid public and private parking spaces, operates across six operating verticals, including public on-street and off-street parking, public multi-storey car parks, developer-owned parking lots, permits and seasonal parking subscriptions, parking reservations, and rental services.
Opportunities for monetisation
Parkin said exploring opportunities for monetisation will be done in collaboration with the Roads and Transport Authority (RTA) and Dubai Electricity and Water Authority (Dewa).
Based on its 49-year concession agreement, Parkin pays RTA a quarterly concession fee equal to 20 per cent of the Company’s revenue generated from paid public parking in Dubai, subject to inflation-linked adjustments.
According to Dewa, Dubai has seen a notable increase in the use of EVs since 2015, with 25,929 electric cars registered by the end of 2023 as compared to a mere 14 owners who registered for Dewa’s EV Green Charger initiative back in 2015.
Achieving net-zero emissions
DEWA has deployed 382 EV Green Charging Stations across Dubai, with many chargers having dual charging outlets that are available round the clock at locations such as petrol stations, public parks, Dewa customer happiness centres, and commercial shopping centres. The utility authority is aiming to have 1,000 public charging stations by 2025, as part of the UAE’s goal of achieving net-zero emissions by 2050.
Parkin, for its part, said it is also committed to net zero operations by 2050 by rolling out full solar powered charging metres, paperless tickets and fines, transitioning to a hybrid vehicle fleet, and expanding smart parking inspection capabilities.