Another Freebie Gone as Abu Dhabi Set to Start Road-Toll System
Another Freebie Gone as Abu Dhabi Set to Start Road-Toll System
(Bloomberg) -- Abu Dhabi commuters have to add one more item to their expense list, as the oil-rich emirate follows its neighbor Dubai by introducing an electronic road-toll collection system from Oct. 15.
Authorities will set up four toll gates on major bridges leading to the United Arab Emirates’ capital, the Department of Transport said in a statement. The move would “reduce traffic congestion and raise the efficiency of the transport sector without having to stop for paying toll fees,” it said.
Abu Dhabi is expecting an annual revenue of 400 million dirhams ($109 million) from the toll gates, Ibrahim Al Hamoudi, acting executive director of the surface transport sector at the department, told reporters.
The change is the latest in a series of measures designed to bolster non-oil revenue in the Gulf in the wake of the 2014 oil-price crash. The U.A.E., a federation of seven emirates, led the way in reducing fuel subsidies and was the first with Saudi Arabia to introduce value-added tax.
The Abu Dhabi government also increased its municipality fees for all rented premises in June last year to as much as 7.5% from 3%.
Dubai introduced toll systems almost 12 years ago. It later used financing backed by road-toll receipts to help fund transport projects in the emirate.
Details of Abu Dhabi toll system
- Toll gates to come up on Sheikh Zayed Bridge, Sheikh Khalifa bin Zayed Bridge, Al Maqtaa Bridge and Mussafah Bridge
- Fee will be 4 dirhams during peak hours from Saturday to Thursday for every time one passes through the gate
- It will be 2 dirhams during off-peak hours, Fridays and public holidays
- Daily maximum fee is 16 dirhams per vehicle
To contact the reporters on this story: Layan Odeh in Dubai at lodeh3@bloomberg.net;Abeer Abu Omar in Dubai at aabuomar@bloomberg.net
To contact the editors responsible for this story: Claudia Maedler at cmaedler@bloomberg.net, Alaa Shahine, Shaji Mathew
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