New paid parking, premium tariff zones; Parkin reveals expansion plans after IPO listing

Parkin's Expansion Plans in Dubai

Parkin, Dubai's largest provider of paid parking facilities and services, is gearing up for significant expansion following its IPO listing. The company, which holds exclusive rights from the Roads and Transport Authority (RTA) to operate all paid public parking, off-street parking, and public multi-storey car parks, is poised to capitalize on the growing demand for parking in the Emirate.

According to Parkin, the demand for parking in Dubai is projected to surge by 60 percent by 2033. To meet this escalating demand, the company plans to develop new paid parking spaces across the Emirate, potentially leading to an increase in the number of paid parking areas in the city.

One of the key strategies for growth outlined by Parkin is the effective implementation of tariff optimization. This involves reclassifying certain standard tariff zones as "premium" ones based on occupancy rates in specific areas. Premium zones would likely command higher parking fees, contributing to increased revenue for the company.

Additionally, Parkin intends to explore various opportunities to expand its current agreements and establish new ones with private developers throughout Dubai. As the city continues to expand, Parkin sees ample opportunities for collaboration in providing parking solutions.

However, it's important to note that areas currently enjoying free parking will remain free, with any decisions to introduce paid parking subject to the discretion of the RTA, as confirmed by a senior official.

Ahmed Hashem Bahrozyan, chairman of Parkin's Board of Directors, emphasized that the implementation of paid parking depends on demand. If certain communities or areas experience growth and a need arises for paid parking to regulate supply and demand, Parkin will evaluate the feasibility of introducing paid parking services accordingly.

In terms of enforcement, Parkin has exclusive rights to operate all paid public on-street parking, off-street parking, and public multi-storey car parks, as per its 49-year concession agreement with the RTA. The company is responsible for enforcing parking regulations and issuing fines within these facilities.

To enhance enforcement capabilities and increase customer compliance, Parkin plans to invest in technology. This includes digitizing surveillance and enforcement processes, such as the deployment of smart parking inspection scan cars and smart parking lots.

Notably, Parkin is the sole provider in Dubai with the authority to enforce related fines. Approximately 23 percent of its revenue stems from enforcement and fine collection, with an impressive 99 percent collection rate on fines issued to UAE vehicles in 2023.

Revenue generation for Parkin primarily comes from parking payments, which account for 56 percent of its revenue. Tariffs for parking spaces are determined by various factors, including location, type of parking facilities, and activity rates within the zone.

In addition to parking payments, about 17 percent of Parkin's revenue comes from seasonal cards, permits, and reservation services, which are paid upfront.

With its IPO listing and plans for expansion and technological advancement, Parkin is poised to play a crucial role in addressing Dubai's evolving parking needs while enhancing efficiency and customer experience in parking management.