Happy Saturday Everyone!

The 2024 earnings reports are in coming out in full swing and the highlight are Talabat, which went live on DFM in December 2024, and Dubai toll-gate operator Salik, which added two more toll gates in the UAE emirate. Meanwhile, Starbucks CEO Brian Niccol, apart from meeting appearing in a talk at the World Government Summit 2025, met Deputy Ruler of Abu Dhabi HH Sheikh Tahnoon and Crown Prince of Abu Dhabi HH Sheikh Khaled bin Mohamed bin Zayed Al Nahyan. He then talked to Bloomberg about the five-year expansion plan, eyeing 500 new stores and adding 5,000 more jobs.

Scroll down for details.

But before that: You can join our Whatsapp channel too to receive updates from the business world.

Salik’s 2024 Profit Jumps to AED1.16 Billion Amid New Gates & Toll Adjustments

📰 What is it about?

• Dubai’s toll-gate operator Salik reported a 6.1% rise in net profit to AED1.16 billion in 2024, up from Dh1.09 billion a year ago.

• Revenue grew to AED2.229 billion, an 8.7% increase, driven by higher toll usage and economic activity.

• Two new toll gates, launched in November 2023, contributed to the revenue boost.

• The company introduced variable toll rates in 2024, charging different fees based on time of day.

💡 Why it matters?

• Salik’s profit grew despite the introduction of a 9% corporate tax in 2024, showing the company’s strong financial position.

• The concession fee paid to RTA was reduced from 25% to 22.5% in April, helping improve margins.

• Dubai’s increasing economic activity and population growth are pushing up traffic and toll revenues.

• 498.1 million toll trips were recorded in 2024, an 8% rise from the previous year.

🔜 What’s next?

• Investors are watching Salik’s performance on the DFM, where its stock trades at AED5.17.

• The impact of variable pricing on long-term traffic patterns and revenues remains to be seen.

• Further expansion of toll infrastructure in Dubai could drive future revenue growth.

• The company’s ability to balance profitability and affordability will be key as Dubai’s transport landscape evolves.

Markets

STEP Conference Dubai 2025: THE Ultimate Tech Festival is Back from February 19-20 at Dubai Internet City

The Step Conference Dubai 2025 is scheduled for February 19-20 at Dubai Internet City. Recognized as the largest tech festival in the Middle East and North Africa (MENA) region, the event anticipates over 8,000 attendees, more than 400 showcasing startups, and upwards of 100 participating companies.

The conference features four main tracks: Founders and Funders, AI Agents, LLMs & Cloud, Fintech for SMBs, AdTech 2.0, and PropTech. Attendees can engage in talks, workshops, and networking sessions tailored to these themes. Notable speakers include H.E. Alia Bint Abdulla Al Mazrouei, the UAE's Minister of State for Entrepreneurship.

Participating in Step Conference offers unparalleled opportunities to connect with industry leaders, investors, and innovators. The event provides a platform to explore the latest technological advancements, gain insights from experts, and foster partnerships that drive business growth.

Whether you're an entrepreneur seeking investment, a professional aiming to expand your network, or a tech enthusiast eager to stay abreast of industry trends, Step Conference Dubai 2025 is an event not to be missed.

Use our code SMASHI to get special price on your tickets.

We, Smashi Business, are the media partners for the event and we will be on the ground to bring you all the updates from the event. You can follow us here…

Starbucks to Open 500 New Stores in the Middle East Despite Boycott Impact

📰 What is it about?

• Starbucks plans to add 500 new stores and 5,000 jobs in the Middle East over the next five years.

• The coffee giant operates 1,300+ stores in the region through Alshaya Group, a Kuwaiti family-owned conglomerate.

• CEO Brian Niccol, in his first visit to the region, reaffirmed Starbucks' commitment to Middle East expansion.

💡 Why it matters?

• Starbucks faced significant boycotts last year over accusations related to the Israel-Gaza conflict, leading to sales declines.

• Alshaya Group cut 2,000 jobs in 2023, citing “challenging trading conditions.”

• Niccol denied any military affiliations, calling the boycott “not based on anything accurate or true.”

• Starbucks aims to regain consumer trust and recover lost sales in the region.

🔜 What’s next?

• The company is also expanding in China, despite economic struggles and local competition.

• Niccol’s broader strategy includes corporate restructuring and potential job cuts by March.

• Investors remain optimistic—Starbucks stock has risen 24% this year, signaling confidence in Niccol’s turnaround plan.

Talabat’s 2024 Net Income Surges 64% to USD 346 Mn, Beats Guidance

📰 What is it about?

• Net income jumped 64% y-o-y to USD 346 million in 2024, while revenues rose 32% to USD 3 billion—exceeding the top end of guidance.

• Gross Merchandise Volume (GMV) hit a record USD 7.4 billion, up 23% y-o-y, with monthly active customers rising 25% and order frequency increasing 8%.

• In Q4 2024, Talabat’s net income rose 54% y-o-y to USD 138 million, and management revenues grew 32% y-o-y to USD 824 million.

• Growth was fueled by strong consumer demand, new customer acquisitions, and improved monetization from non-commission revenue, delivery fees, and the tMart business.

💡 Why it matters?

• Talabat raised AED 7.5 billion (USD 2 billion) in its IPO, marking the largest tech listing globally in 2024 and the biggest IPO in the GCC that year.

• The IPO was DFM’s first-ever tech listing and saw double-digit oversubscription, reflecting strong investor demand.

• The company’s profitability improved across both GCC and non-GCC markets, driven by margin expansion and operational efficiencies.

• Talabat increased its planned dividend payout to USD 110 million, up from USD 100 million, pending shareholder approval.

🔜 What’s next?

• Talabat forecasts GMV growth of 17-18% y-o-y, revenue growth of 18-20%, and net income margin expansion to 5-5.5% in 2025.

• The company remains focused on market leadership, strengthening partnerships, and enhancing its tech platform, according to CEO Tomaso Rodriguez.

• With strong momentum from its IPO and record-breaking growth, Talabat is set to further solidify its dominance in the Middle East’s delivery sector.

🔍In other news…

1. Air Arabia posts record Dh1.6 billion pre-tax net profit, 11% total turnover growth.

2. Abu Dhabi is also getting vertiports.

3. Salaries in Saudi Arabia may rise 2% in 2025, says Cooper Fitch.

4. Gold prices may hit $3,400 later this year, reports Khaleej Times.

5. People are sending more money to their Asian countries from the UAE.

6. Saudi Arabia to export locally made robots and copper in 2025 plan.

The Latest from the Smashi Business Studio

Were you forwarded this email? Subscribe here