# How to invest in Salik - Guide for NRIs
Author: Ankur Choudhary
Author URL: https://getbelong.com/blog/author/ankur-choudhary/
Published: 2025-10-04
Category: NRI Investment
Category URL: https://getbelong.com/blog/category/nri-investment-guide/
Meta Title: How To Invest in Salik | Tax & Legal Guide for NRIs
Meta Description: Can NRIs invest in Salik Dubai stock? Learn process, FEMA rules, tax implications & why GIFT City investments offer better returns for global Indians.
Tags: Stocks
Tag URLs: Stocks (https://getbelong.com/blog/tag/stocks/)
URL: https://getbelong.com/blog/how-to-invest-salik/
If you're an NRI in Dubai, you've probably passed through Salik toll gates dozens of times. Maybe you've noticed the company's strong performance since its [September 2022 listing on the Dubai Financial Market](https://www.zawya.com/en/markets/equities/salik-debuts-listing-and-trading-of-its-shares-on-dfm-o4khveld), and wondered: Can I actually invest in this?
The short answer: Yes, you can. The better question: _Should_ you?
After helping thousands of NRIs navigate cross-border investments through Belong, we've seen this question come up repeatedly.
Many of you are earning in dirham, watching your colleagues invest in UAE stocks, and wondering how it fits with Indian regulations.
You're rightfully concerned about [FEMA compliance](https://getbelong.com/blog/fema-guidelines/), taxation under the [India-UAE DTAA](https://getbelong.com/blog/dtaa/india-uae/), and whether there are smarter alternatives.
This guide covers everything you need to know about investing in Salik as an NRI - from the legal framework to step-by-step process, tax implications, and why [GIFT City investments](https://getbelong.com/blog/gift-city-investments/) might actually serve you better.
No jargon, no assumptions, just practical answers to help you decide confidently.
## **What is Salik and Why NRIs Are Interested**
Salik Company P.J.S.C. is Dubai's exclusive toll gate operator. The company was [incorporated in 2022 and listed on the Dubai Financial Market (DFM) in September 2022](https://www.zawya.com/en/markets/equities/salik-debuts-listing-and-trading-of-its-shares-on-dfm-o4khveld) with the ticker symbol "SALIK."
Here's what makes Salik attractive to investors:
- **Monopoly position**: Salik operates all eight toll gates in Dubai with 100% exclusivity granted by the Roads and Transport Authority (RTA)
- **Stable revenue stream**: With over [3 million registered vehicles](https://www.khaleejtimes.com/uae/dubai-road-toll-operator-salik-to-be-established-as-public-joint-stock-company), each paying AED 4 per gate crossing, Salik generates predictable revenue
- **Strong dividends**: The company pays 100% of net profit as dividends twice annually (April and October), offering a [dividend yield around 3.12%](https://www.investing.com/equities/salik-company-pjsc)
- **Growth trajectory**: The stock has shown a [40.33% increase over the past year](https://www.tradingview.com/symbols/DFM-SALIK/) with a current market cap of approximately AED 45.30 billion
For NRIs living in Dubai, investing in Salik feels intuitive. You use the service daily, understand the business model, and believe in Dubai's continued growth.
π **Key insight:** Just because you _can_ invest doesn't mean it's the _best_ option for your situation. Understanding the regulatory and tax framework is crucial.
## **Can NRIs Legally Invest in Foreign Stocks Like Salik?**
Yes - NRIs can legally invest in foreign stocks, including UAE-listed companies like Salik. However, there are important regulations to understand.
### **FEMA Regulations on Foreign Investments**
Under the [Foreign Exchange Management Act (FEMA)](https://www.rbi.org.in/commonman/english/scripts/Notification.aspx?Id=856), NRIs have two primary routes for investing abroad:
**1\. Overseas Portfolio Investment (OPI)**
[FEMA's Overseas Investment rules, 2022](https://www.rbi.org.in/commonman/English/scripts/Notification.aspx?Id=856) allow NRIs to make portfolio investments in foreign securities without prior RBI approval, subject to certain conditions.
**2\. Liberalized Remittance Scheme (LRS)**
Under the LRS, resident Indians (which includes some NRIs depending on their residential status) can remit up to [USD 250,000 per financial year](https://www.hsbc.co.in/help/faqs/foreign-exchange-management-act/) for permissible capital and current account transactions, including investments in overseas securities.
### **The Critical Question: Your Residential Status**
Here's where it gets specific to your situation. Under [FEMA guidelines](https://www.hdfcbank.com/personal/resources/learning-centre/save/fema-regulations-for-nri), you're classified as an NRI if:
- You've stayed outside India for more than 182 days in the preceding financial year, OR
- You've stayed in India for less than 60 days in the last year AND less than 365 days during the preceding four years
Once you're classified as an NRI, you can invest in foreign markets using funds from your:
- Foreign earnings (most straightforward)
- [NRE (Non-Resident External) account](https://getbelong.com/blog/nre-nro-fcnr/) (fully repatriable)
- [NRO (Non-Resident Ordinary) account](https://getbelong.com/blog/nri-account-types/) (with repatriation limits)
**The good news:** If you're earning in UAE dirhams and want to invest those earnings in Salik or other UAE stocks, FEMA doesn't restrict this. You're investing foreign currency earned abroad into foreign assets.
**The catch:** You still need to report this to Indian tax authorities and understand the tax implications (which we'll cover shortly).
π **Tip:** Use our free [Residential Status Calculator](https://getbelong.com/tools/nri-residential-status-calculator/) to confirm your exact classification for the current financial year.
## **How Do You Actually Invest in Salik Stocks?**
Let's get practical. Here's the step-by-step process for investing in Salik as an NRI:
### **Step 1: Get Your DFM Investor Number (NIN)**
To trade on the Dubai Financial Market, you need a unique [Investor Number](https://www.dfm.ae/the-exchange/regulation/market-rules). You can obtain this by:
- Downloading the [DFM mobile app](https://www.dfm.ae/) and registering directly
- Approaching any DFM-licensed brokerage firm
- Using a UAE-based broker like Emirates NBD Securities, amana, or other licensed brokers
**Required documents:**
- Valid passport
- UAE residence visa
- Emirates ID
- Proof of UAE address (utility bill, tenancy contract)
### **Step 2: Open a Trading Account**
Once you have your NIN, open a trading account with a licensed UAE broker. Popular options for NRIs include:
- [**Emirates NBD Securities**](https://www.emiratesnbdsecurities.com/en/markets/dubai-financial-market): Integrated with Emirates NBD banking
- **amana**: A UAE-based neo-broker with simplified access
- **Other DFM-licensed brokers**: Check the [Securities and Commodities Authority (SCA) website](https://www.sca.gov.ae/en/) for the complete list
Each broker will have different fee structures. Typical charges include:
- Brokerage commission: 0.15% to 0.25% of transaction value
- SCA fee: Variable
- VAT: 5% on brokerage fees
### **Step 3: Fund Your Account**
You can fund your UAE brokerage account through:
- **Direct transfer from UAE bank account**: Fastest option if you have a local account
- **International wire transfer**: From your NRE/NRO account or foreign bank account
- **Exchange house**: If transferring from India
β οΈ **Important:** If transferring funds from India, ensure compliance with [FEMA's repatriation rules](https://getbelong.com/blog/nre-account/repatriation/). Funds from NRE accounts are freely repatriable; NRO accounts have a limit of USD 1 million per financial year.
### **Step 4: Place Your Order**
Once funded, you can buy Salik shares (ticker: SALIK) through your broker's platform:
- **Current price**: Around [AED 5.95 per share](https://www.investing.com/equities/salik-company-pjsc) (as of early October 2025)
- **Trading hours**: Dubai Financial Market operates Sunday to Thursday, 10:00 AM to 2:00 PM UAE time
- **Settlement**: T+2 (trade date plus two business days)
You can place market orders (buy at current price) or limit orders (buy at your specified price).
### **Step 5: Hold or Trade**
Once you own Salik shares:
- They're held in your DFM account
- You'll receive dividend credits directly to your linked bank account
- You can sell anytime during market hours
## **Taxation for NRIs: The India-UAE DTAA Advantage**
This is where things get interesting - and potentially very beneficial for NRIs in the UAE.
### **Understanding Capital Gains Tax**
When you sell Salik shares at a profit, you generate capital gains. Here's how they're taxed:
**In UAE:**
The UAE [does not levy personal income tax](https://www.dbs.com/in/treasures/articles/nri-hub/live-enriched/income-tax-for-nris-in-the-uae-new-amendments), including tax on capital gains from stock investments. Your gains from Salik are 100% tax-free in the UAE.
**In India:**
Here's where the [India-UAE Double Taxation Avoidance Agreement (DTAA)](https://tax2win.in/guide/dtaa-between-india-and-uae) becomes crucial. Under Article 13 of the DTAA:
- **Shares of Indian companies** are taxable in India
- **Other property** (including shares of UAE companies like Salik) shall be taxable only in the Contracting State where the seller resides
What this means: If you're a tax resident of UAE, your capital gains from Salik are **not taxable in India**. Since UAE doesn't tax them either, your gains are effectively **zero tax**.
However, there's an important requirementβ¦
### **The Tax Residency Certificate (TRC) Requirement**
To claim DTAA benefits and avoid Indian taxation on Salik gains, you must:
1. **Obtain a Tax Residency Certificate** from UAE's Federal Tax Authority proving you're a UAE tax resident
2. **File Form 10F** with Indian tax authorities along with the TRC
3. **Declare the income** in your Indian tax return (even if claiming exemption)
[According to recent ITAT rulings](https://cafornri.com/nris-in-the-uae-you-could-be-paying-0-tax-on-mutual-fund-gains-in-india-heres-practical-guide/), NRIs who properly document their UAE tax residency can successfully claim exemption on capital gains from foreign investments.
π **Pro tip:** Getting a TRC costs around AED 1,000-2,000 and takes 2-4 weeks. It's worth it if you're making substantial investments.
### **What About Dividends?**
Salik pays regular dividends (approximately 3.12% yield). Here's how they're taxed:
**In UAE:** No tax on dividends received
**In India:** According to the [DTAA between India and UAE](https://getbelong.com/blog/dtaa/india-uae/), dividends from UAE companies may be subject to withholding tax. However, with proper TRC documentation, you can often reduce or eliminate this tax burden.
### **Reporting Requirements in India**
Even if you're not paying tax on Salik gains, you must still:
- Report foreign assets in your [Indian tax return using Schedule FA](https://getbelong.com/blog/nri-tax/online-itr-filing/) (Foreign Assets)
- Disclose any income from foreign sources
- Maintain documentation of TRC and Form 10F
Failing to report can result in penalties ranging from Rs. 10 lakh to Rs. 90 lakh under recent amendments to the Income Tax Act.
## **Currency Risk: The Hidden Cost Nobody Talks About**
Here's an aspect many NRIs overlook when investing in UAE stocks: **currency risk**.
When you invest in Salik:
- You buy shares in AED (UAE Dirham)
- You receive dividends in AED
- You sell shares and receive proceeds in AED
If you eventually plan to repatriate funds to India or use them in another currency, you're exposed to AED-INR exchange rate fluctuations.
**Real example:**
- In 2020, 1 AED = βΉ20
- In 2025, 1 AED = βΉ23-24
- That's a 15-20% currency gain for NRIs who invested in AED assets
However, currency can also move against you. The rupee's depreciation has historically favored AED holders, but there's no guarantee this trend continues.
Compare this to [GIFT City USD-denominated investments](https://getbelong.com/blog/gift-city-benefits-for-nris/), which offer:
- Investment in stable US dollars
- Protection against rupee depreciation
- Tax-free returns under IFSC regulations
- No currency conversion costs
## **Salik vs. Indian Stocks: What's Different?**
Many NRIs ask: "I can invest in Indian stocks through [PIS accounts](https://getbelong.com/blog/invest-indian-stock-market-abroad/). How is Salik different?"
Here's a comparison:
Aspect
Salik (UAE Stock)
Indian Stocks
**Account required**
UAE brokerage + NIN
NRE/NRO PIS account
**Regulatory body**
UAE SCA
SEBI, RBI
**Investment limit**
No limit
10% of company paid-up capital (can be raised to 24%)
**Taxation on gains**
0% (with UAE TRC)
10% on LTCG >βΉ1.25L, 15% on STCG
**Repatriation**
Freely repatriable
Depends on NRE/NRO account type
**Currency**
AED
INR
**Trading type**
All types allowed
Only delivery-based, no intraday
**Key insight:** Investing in Salik is actually _simpler_ from a regulatory standpoint than investing in Indian stocks. You don't need RBI approval, PIS accounts, or complex repatriation processes.
The main complexity comes from ensuring proper tax documentation to claim DTAA benefits.
## **Risks and Considerations Before You Invest**
Let's be honest about the risks:
### **1\. Concentration Risk**
Salik is a single-asset bet on Dubai's toll road system. Unlike diversified investments, your entire investment depends on:
- Dubai's traffic volumes
- RTA's toll pricing policies
- Introduction of new toll gates (or lack thereof)
- Dubai's broader economic health
### **2\. Limited Growth Potential**
As a mature toll operator with fixed infrastructure, Salik's growth is limited to:
- Dubai population growth
- New toll gate additions
- Toll rate increases (politically sensitive)
Compare this to growth stocks in technology or emerging sectors.
### **3\. Liquidity Concerns**
The Dubai Financial Market is smaller than major exchanges. [DFM's daily trading volumes](https://www.dfm.ae/) can be thin compared to NSE or NYSE, potentially making it harder to enter/exit large positions quickly.
### **4\. Regulatory Changes**
UAE's regulatory environment, while stable, can change. [Corporate tax was introduced at 9%](https://www.sca.gov.ae/) in recent years. Future changes could affect returns.
### **5\. Lack of Diversification**
If you're already earning in AED, living in UAE, and investing in UAE stocks, you have extreme geographic concentration. Diversification across countries and currencies is generally prudent.
## **Why GIFT City Might Be a Better Option**
After working with thousands of NRIs, here's what we've observed: Most NRIs investing in UAE stocks are actually looking for three things:
1. **Tax efficiency**: They want to minimize tax on returns
2. **Currency protection**: They want to hedge against rupee depreciation
3. **India connection**: They ultimately plan to return to India or use funds there
If that sounds like you, [GIFT City investments](https://getbelong.com/blog/belong-nri-investment-gift-city/) might actually serve you better than Salik. Here's why:
### **GIFT City USD Fixed Deposits**
Through Belong, you can invest in [GIFT City USD fixed deposits](https://getbelong.com/blog/nri-fixed-deposits-in-gift-city/) offering:
- **Returns**: 4-5% annual returns in US dollars
- **Tax treatment**: 100% tax-free under IFSC regulations
- **Currency**: USD-denominated (stronger than AED or INR)
- **Principal protection**: Unlike stocks, FDs offer guaranteed returns
- **Repatriation**: Seamless repatriation to any country
- **Regulation**: Under IFSCA (International Financial Services Centre Authority), backed by Government of India
**Real comparison:**
- Salik dividend yield: ~3.12% in AED (subject to business performance)
- GIFT City USD FD: ~4-5% guaranteed in USD (tax-free)
Use our [NRI FD Rates Comparison Tool](https://getbelong.com/tools/nri-fd-rates/) to see current rates from all major banks offering GIFT City deposits.
### **GIFT City Alternative Investment Funds (AIFs)**
For NRIs seeking higher returns with some risk, [GIFT City AIFs](https://getbelong.com/blog/funds-gift-city-aifs/) offer:
- Exposure to Indian growth story
- Professional fund management
- USD denomination
- Favorable tax treatment
- Lower entry barriers than before
Browse available funds on our [GIFT City AIFs page](https://getbelong.com/tools/gift-city-alternative-investment-funds/).
### **The Diversification Advantage**
Rather than putting all eggs in one basket (Salik), consider:
- 40% in GIFT City USD FDs (stable, tax-free income)
- 30% in GIFT City AIFs (growth exposure)
- 20% in [Indian mutual funds](https://getbelong.com/blog/best-mutual-funds/) (equity growth)
- 10% in UAE stocks like Salik (if you still want local exposure)
This approach gives you:
- Geographic diversification
- Currency diversification (USD, INR, AED)
- Risk diversification (FDs, equity, AIFs)
- Tax optimization
## **Step-by-Step: Your Action Plan**
Based on everything covered, here's your action plan:
### **If You Want to Invest in Salik:**
**Week 1:**
1. Confirm your [NRI residential status](https://getbelong.com/tools/nri-residential-status-calculator/)
2. Apply for UAE Tax Residency Certificate
3. Research and choose a UAE broker
**Week 2:** 4\. Complete broker onboarding (NIN + trading account) 5. Fund your account 6. Start with a small test investment (10-20 shares)
**Ongoing:** 7\. File Form 10F with Indian tax authorities 8. Report foreign assets in your ITR 9. Monitor performance and rebalance annually
### **If You Want to Explore GIFT City Instead:**
**This week:**
1. [Join Belong's WhatsApp community](https://chat.whatsapp.com/EaxmhRZ6fTiChXQAZhqFK4) to connect with other NRIs discussing GIFT City investments
2. [Download the Belong app](https://app.getbelong.com/LywZ/blogs) to browse current GIFT City FD rates and AIF options
3. Use our [compliance compass tool](https://getbelong.com/tools/compliance-compass/) to check your complete compliance status
**Next week:** 4\. Complete online KYC (we handle doorstep verification in UAE) 5. Start with a GIFT City USD FD (as low as $1,000) 6. Gradually add AIFs or other instruments based on risk appetite
## **The Bottom Line**
Can NRIs invest in Salik? Absolutely yes.
Should they? It depends on your specific situation.
**Invest in Salik if:**
- You're settled long-term in UAE
- You want exposure to Dubai's infrastructure growth
- You can get UAE Tax Residency Certificate
- You're comfortable with single-stock risk
- You already have diversified investments elsewhere
**Consider GIFT City investments if:**
- You want guaranteed, tax-free returns
- You plan to return to India eventually
- You want USD currency protection
- You prefer diversification over single stocks
- You want simpler tax and compliance
**Do both if:**
- You want true diversification
- You can afford to allocate across asset classes
- You enjoy following both markets
The smartest NRIs we work with typically start with stable, tax-efficient foundations (like [GIFT City FDs](https://getbelong.com/blog/nri-fixed-deposits-in-gift-city/)) before adding higher-risk, single-stock positions like Salik.
Whatever you choose, make sure you:
1. Understand the complete tax picture
2. Maintain proper documentation
3. Report all foreign assets in your ITR
4. Review and rebalance annually
**Ready to explore your options?**
Join over 5,000 NRIs in our [WhatsApp community](https://chat.whatsapp.com/EaxmhRZ6fTiChXQAZhqFK4) where we discuss everything from UAE stocks to GIFT City investments, tax planning to repatriation strategies.
[Download the Belong app](https://app.getbelong.com/LywZ/blogs) to access our complete suite of tools:
- [NRI FD rates comparison](https://getbelong.com/tools/nri-fd-rates/) across 15+ banks
- [GIFT City AIFs explorer](https://getbelong.com/tools/gift-city-alternative-investment-funds/)
- [Residential status calculator](https://getbelong.com/tools/nri-residential-status-calculator/)
- [Compliance compass](https://getbelong.com/tools/compliance-compass/)
Or [connect with our financial advisors](https://getbelong.com/about-us/) who specialize in cross-border investments for NRIs.
**Invest smarter. Stay compliant. Build wealth.**
## **Key Takeaways**
β NRIs can legally invest in Salik through UAE brokerages
β You need a DFM Investor Number (NIN) and trading account
β Capital gains are tax-free with proper UAE Tax Residency Certificate
β Must report foreign assets in Indian tax returns regardless of tax liability
β Currency risk (AED exposure) should be carefully considered
β GIFT City USD investments offer comparable returns with better tax treatment
β Diversification across geographies and currencies is prudent
* * *
**Sources:**
- [Dubai Financial Market - Salik listing information](https://www.dfm.ae/)
- [ZAWYA - Salik debuts trading](https://www.zawya.com/en/markets/equities/salik-debuts-listing-and-trading-of-its-shares-on-dfm-o4khveld)
- [RBI - FEMA regulations](https://www.rbi.org.in/commonman/english/scripts/Notification.aspx?Id=856)
- [India-UAE DTAA provisions](https://tax2win.in/guide/dtaa-between-india-and-uae)
- [Income Tax Department - Foreign investment rules](https://incometaxindia.gov.in/)
- [Securities and Commodities Authority, UAE](https://www.sca.gov.ae/)
_Disclaimer: This article is for educational purposes only and does not constitute financial, legal, or tax advice. Consult with a qualified financial advisor and tax professional before making investment decisions. Regulations and tax laws change frequently; verify current rules before acting._
## FAQs
Q: Can I invest in Salik using funds from my NRE account?
A: βYes, you can transfer funds from your NRE account to your UAE bank account and then to your brokerage. The funds remain repatriable.β
Q: What if I return to India? Can I keep my Salik investments?
A: βYes. Your foreign investments don't need to be liquidated when you return. However, your tax treatment may change depending on your new residential status.β
Q: Is Salik Sharia-compliant?
A: βYes, DFM operates according to Sharia principles, and Salik's business model is generally considered Sharia-compliant as an infrastructure operator.β
Q: Can my spouse (Indian resident) invest in Salik?
A: βIf your spouse is a resident Indian, they can invest in Salik under the LRS limit of $250,000 per year, but the process is more complex and taxation will differ.β
Q: How do I calculate returns if AED changes against INR?
A: βYour returns = (Stock price gain + Dividends + Currency appreciation) - Costs. Use our Rupee vs Dollar Tracker to monitor currency movements.β
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