• NYC launches USD 9 congestion fees during peak hours, aiming to reduce traffic and raise USD 15 billion for transit.
• Dubai experiments with dynamic tolls and congestion pricing, adjusting rates during peak hours to manage growing vehicle numbers effectively.
• Riyadh faces severe congestion but relies on metro expansion and bus networks; congestion pricing could potentially further encourage public transport. 

NYC

Recently, congestion pricing officially hit New York City (NYC). Now, drivers entering parts of Manhattan will be charged USD 9 during peak hours. This comes after similar models in London, Stockholm and Singapore in an attempt to tackle some of the worst traffic congestion. This initiative expects to bring in around USD 15 billion to the Metropolitan Transportation Authority. Now the question is, could this model be applied in MENA’s major cities? 

This model could represent an opportunity for major GCC cities like Dubai and Riyadh which suffer from high congestion rates. These cities are increasingly facing increasing congestion due to an increase in population and urban expansion. 

Dubai

In Dubai alone, the number of registered vehicles hit 2.5 million in 2024, which is half of all vehicles registered in the UAE. Additionally, the city’s population is increasing at an anula rate of over 6%. This has led to discussions of dynamic toll gate pricing that would charge more during peak hours than off peak hours.  

In fact, in January 2025, Dubai’s toll gate operator, Salik, put into effect dynamic toll gate pricing during peak hours. Previously, it would charge a fixed rate of AED 4 but the change led to charging AED 6 during peak hours. These peak hours are between 6:00 a.m. and 10:00 a.m, and 4:00 p.m. and 8:00 p.m. Simultaneously, it also introduced toll free hours daily from 1:00 a.m. to 6:00 a.m. Additionally,from February they also launched a new Congestion Pricing Policy. It charges AED 25 per hour for public paid parking spaces near event zones.

Riyadh

This model could also be successful in Riyadh which tops the list of the most congested Arab cities in Asia in 2024. It records an average of 52 hours wasted annually due to traffic and a congestion rate reaching 23 percent. The city is already taking steps to tackle this with its 174 meter metro designed to ease congestion.  Furthemore, the combination of both metro and buses seeks to support the city’s traffic, economy, urban development, and social life.

However, it does not currently have a congestion pricing system which could encourage further use of the metro. Currently, the city’s heavy traffic congestion is exacerbated by rapid population growth. However, with the compilation of its automated technology, and introduction of new infrastructure projects, there does seem to be hope on the horizon. 

MENA cities could adopt NYC-style congestion pricing to better manage traffic while supporting sustainable urban growth. Major cities in the GCC already show progress and further combining infrastructure with targeted fees could further reduce congestion and promote public transport.