Seasonal cards and developer parking are expected to offset weaker revenue growth from public parking.
Dubai: Parkin has lowered its 2026 public parking revenue forecast after revising its expectations for the rollout and use of new parking spaces, with stronger demand for seasonal cards and developer parking expected to offset the shortfall.
The Dubai-listed parking operator now expects revenue from its public parking business to reach Dh510 million to Dh550 million in 2026, down from its earlier forecast of Dh560 million to Dh610 million.
The revised outlook is also below the Dh524 million generated by the public parking segment in 2025.
Parkin said the revised forecast reflects continued strong demand for seasonal parking cards, along with changes in the timing of new public parking spaces coming into operation and the pace at which they reach expected utilisation levels.
The updated 2026 outlook comes as the Dubai-listed parking operator reported second-quarter revenue of Dh364.1 million, a 14 per cent increase from the same period last year. EBITDA rose 15 per cent to Dh217.2 million, while net profit climbed 12 per cent to Dh166.2 million.
Seasonal cards become a stronger revenue driver
While Parkin has lowered its public parking revenue outlook, it has raised its forecast for seasonal card revenue.
The company now expects seasonal card revenue to reach Dh280 million to Dh300 million in 2026, up from its previous guidance of Dh260 million to Dh280 million and Dh211 million recorded in 2025.
The upgraded outlook reflects continued strong demand for seasonal parking cards, with sales rising 38 per cent year-on-year to 97,500 in the second quarter.
Parkin has previously said customers are increasingly opting for seasonal parking cards because daily parking tariffs have risen while seasonal card rates have remained unchanged, making the cards more cost-effective for frequent users.
Parkin CEO Eng. Mohamed Abdulla Al Ali said demand for seasonal cards and developer parking remained strong despite softer demand for public parking.
“Growth was driven by our seasonal cards, developer parking and enforcement segments, offsetting softer public parking demand during the quarter,” he said.
He added that the company remained committed to its dividend policy and to creating sustainable long-term value for shareholders.
Public parking network continues to expand
Despite lowering its public parking revenue forecast, Parkin continues to expand its parking network across Dubai.
The company had initially planned to add up to 7,500 public parking spaces in 2026. However, it added 9,900 spaces during the first half of the year and now expects to add a further 3,500 to 5,000 spaces by the end of 2026.
Parkin said the pace at which newly added spaces reach expected utilisation levels is among the factors behind the revised outlook for public parking revenue.
Enforcement revenue forecast unchanged
Parkin has maintained its 2026 enforcement revenue guidance at Dh420 million to Dh460 million, compared with Dh409 million in 2025.
The company continues to expand its use of technology to improve enforcement. In the second quarter, its smart inspection vehicles scanned 20.6 million vehicle registration plates, a 52 per cent increase from a year earlier. The number of fines issued also rose 5 per cent to 695,400.
Developer parking emerges as another growth driver
Parkin has also raised its revenue forecast for its private and developer parking business.
The company now expects the segment to generate Dh130 million to Dh150 million in 2026, compared with its previous guidance of Dh110 million to Dh130 million and Dh94 million recorded in 2025.
Parkin’s developer parking business has expanded rapidly, with its portfolio more than tripling year-on-year to 61,500 spaces by the end of the second quarter.
However, the company cautioned that this growth comes with some pressure on margins.
Parkin said it entered into several lower-margin developer agreements in 2025 that require minimum annual guarantees and/or fixed annual payments. While these contracts are expected to drive higher developer parking revenue, they are likely to limit margin expansion.
The fixed components of the agreements will be recognised below EBITDA through the amortisation of right-of-use assets and interest on lease liabilities, resulting in higher depreciation and finance costs.
Technology investment set to increase
Parkin expects capital expenditure to rise to Dh45 million to Dh55 million in 2026, compared with Dh13.9 million in 2025.
The increased spending will support developer contract commitments and technology upgrades, including investments in smart parking camera infrastructure. The planned capital expenditure also includes up to Dh20 million for Sports City, a project previously announced by the company.
