Dubai issued more than 743,000 parking fines in the first half of 2024, with a fleet of cutting-edge inspection vehicles helping to close the net on rule-breaking drivers.
The number of financial penalties imposed on motorists rose 13 per cent year-on-year as authorities embrace technology to catch those failing to pay up.
The fines generated Dh107.1 million, up from Dh94.9 million in the first six months of last year.
The figures were shared this week by Parkin, the company established in January to manage public parking operations, in its second quarter earnings report.
Parkin said expanded enforcement efforts had supported a fine collection rate of 87 per cent from March to June.
“The majority of the fines issued was as a result of public parking enforcement,” the Parkin report stated. “Parkin continued to enhance its enforcement capabilities via the use of its fleet of smart inspection scan cars.
“These vehicles have expanded the company’s ability to undertake enforcement across new areas and with higher accuracy, reducing reliance on physical inspections.”
Parking profits soar
Average daily parking revenue – gathered from all fees as well as fines – reached record levels this year.
It comes amid a significant expansion in parking capacity in the emirate in recent months.
Money raised from fines contributed to total revenue of Dh421 million from January to June, up from Dh383 million in the first half of last year.
“We continued to deliver profitable growth in the second quarter, underpinned by higher transaction volumes in our public and developer parking segments, greater demand for seasonal permits, improved public parking utilisation rates and enhanced enforcement practices,” said Mohamed Al Ali, chief executive of Parkin.
“The company delivered revenue growth of 12 per cent in quarter two compared to the same period in 2023, with total average parking revenue per day reaching a record level, notwithstanding the impact of the extreme rainfall that Dubai experienced in April and the slightly lower number of chargeable days in the period.”
The Parkin report states that an additional 5,900 parking spaces were created in the past 12 months, with 3,000 of those being private developer-owned spots.
The investment in parking infrastructure will support a continued population boom in Dubai.
The emirate's population crossed 3.5 million in April 2022 and now stands at more than 3.76 million, according to the government-run Dubai Statistics Centre.
Long-term parking strategy
Dubai set up Parkin to oversee car park operations in the emirate under a law issued by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, in January.
The company has been tasked with creating, planning, designing, operating and managing public parking spaces.
It was granted financial, administrative and legal autonomy to fulfil its responsibilities for 99 years from the date of registration.
The directive permitted people to own shares in Parkin through public or private subscription, although the ownership percentage of the Dubai government “must not fall below 60 per cent” of the company's capital when its shares are offered, Dubai Media Office said at the time.
Parkin enjoyed net profits of Dh95 million in the second quarter of 2024.
The company plans to offer a dividend for the first half of the year, to be paid in late October, based on its “strong operational and financial performance”.
Shares of Parkin rose 30 per cent when it made its trading debut on the Dubai Financial Market in March.
“Following this strong operational and financial performance, and in line with our commitment made during the IPO process, Parkin plans to reward shareholders with a dividend for the first half of the year, payable towards the end of October,” said Mr Al Ali.
