Dubai's Parkin Plans to Expand into Saudi Arabia Through Partnership with BATIC
Dubai’s Parkin Plans to Expand into Saudi Arabia Through Partnership with BATIC
Dubai-based Parkin, a company that runs paid public parking facilities, has teamed up with Saudi Arabia’s investment and logistics firm BATIC to work together and grow their business in the Saudi market, the companies announced on Monday.
New Agreement
Parkin’s CEO visited BATIC’s headquarters in Riyadh to sign an agreement. The deal will combine the Dubai-based company’s technology and operations with BATIC’s network in Saudi Arabia, including its subsidiary, Smart City Solutions (SCSC).
The partnership will focus on using advanced technologies like artificial intelligence, real-time data analysis, and smart parking tools such as sensors, cameras, and digital gates.
“This collaboration will provide innovative and customer-friendly parking solutions that benefit both residents and visitors, while also boosting the economy,” said Parkin CEO Mohamed Abdulla Al Ali.
BATIC, a Saudi company listed on the Tadawul stock exchange, operates in logistics, transportation, real estate, and private security. Through SCSC, it manages over 195,000 parking spaces in five Saudi cities.
“Our partnership with the UAE’s top parking operator will help us improve parking services, reduce traffic, and enhance customer experiences,” said BATIC Group CEO Mohammed Alzamil.
Founded in 1984 and listed on Tadawul since 1991, BATIC plays a key role in Saudi Arabia’s economic growth and development. Through SCSC, it manages long-term public parking contracts in the kingdom.
Parkin’s Q3 Results
Parkin’s revenue grew by 25% in the third quarter of 2024, reaching $65.1 million (AED 239.2 million). Revenue from public parking rose 16% to $28.2 million (AED 103.7 million), thanks to an increase in ticket purchases.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 40% from last year to $40 million (AED 146.8 million). Its EBITDA margin improved to 61%, compared to 54% in the same period last year.
Net profit went up by 5% to $28.5 million (AED 104.7 million), despite higher depreciation, finance costs, and the introduction of a new 9% corporate tax in the UAE.
Parkin IPO and Expansion
Parkin was established in 2023 through an agreement with Dubai’s Roads and Transport Authority (RTA). It manages around 207,000 paid parking spaces in Dubai, including on-street, off-street, and multi-storey parking areas.
The company went public in March 2024, listing on the Dubai Financial Market (DFM). It sold 24.9% of its shares (749.7 million existing shares) in its IPO, which was highly successful, with investor demand exceeding supply by 165 times. The IPO raised $71 billion (AED 259 billion), setting a record for the DFM.
Parkin is expanding into Saudi Arabia as part of its regional growth strategy. The company processed 95 million parking transactions in the first nine months of 2024, supported by its advanced digital and AI-powered parking systems.
Published: 16th December 2024
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