TECOM Group Expands Land Portfolio in Dubai Industrial City
Major Acquisition Announcement
TECOM Group PJSC, listed on the Dubai Financial Market, has made a significant move to enhance its land holdings by acquiring a substantial 33 million square feet of land in Dubai Industrial City. This acquisition, approved by the Group’s Board of Directors, represents an investment of AED 1.6 billion. With this expansion, TECOM’s total land portfolio now exceeds 209 million square feet. The decision aligns with the Group’s commitment to reinforcing the industrial sector in Dubai and supporting initiatives like Operation 300bn and the Dubai Economic Agenda ‘D33’.
Dubai Industrial City: A Leading Manufacturing Hub
Currently, Dubai Industrial City serves as a premier manufacturing and logistics center in the region, boasting an impressive occupancy rate of 99%. This includes newly acquired plots from the previous year. The continuous rise in demand within the industrial sector has prompted this latest acquisition, further solidifying Dubai Industrial City’s reputation as an attractive location for manufacturing and logistics businesses.
Strategic Importance of the Acquisition
Abdulla Belhoul, CEO of TECOM Group, emphasized the strategic nature of this acquisition. He noted that it marks a vital step in facilitating Dubai’s evolution into a global hub for foreign direct investment. With the backdrop of robust economic fundamentals and initiatives like the Comprehensive Economic Partnership Agreement (CEPA), the UAE is well-positioned for growth. This acquisition not only meets existing customer needs but also paves the way for new business ventures in the manufacturing sector.
Financial Impact and Future Prospects
The AED 1.6 billion investment is part of TECOM Group’s broader growth strategy, raising the total investment across its commercial and industrial portfolio to AED 4.3 billion since 2024. The land acquisition reflects a rising demand for industrial solutions, following last year’s purchase of 13.9 million square feet in Dubai Industrial City. That previous expansion has already been fully leased to major players in diverse sectors such as food and beverage, base metals, and transportation.
TECOM Group plans to finance this latest acquisition using its existing financial resources, structured around a flexible repayment schedule. They anticipate recognizing revenue from this additional land within the next 12 to 24 months. Notably, this strategic move will be executed while maintaining a healthy leverage and liquidity position.
Regulatory Compliance and Governance
In addition to its financial strategy, TECOM Group has adhered to all necessary regulatory and governance protocols related to this land acquisition. The valuation process engaged credible, independent parties accredited by regulatory authorities, ensuring that best practices were observed throughout.
Strong Financial Performance
The acquisition comes on the heels of TECOM Group’s strong financial results for the first half of 2025. The company reported a 22% increase in net profit year-on-year, totaling AED 737 million—and a 21% revenue growth year-on-year to AED 1.4 billion. This positive trend, coupled with rising rental rates and high occupancy levels, reinforces TECOM Group’s capacity to attract international clients to its vibrant business districts.
Dubai Industrial City: A Premier Location
Established in 2004, Dubai Industrial City has emerged as the leading hub for manufacturing and logistics in the region, catering to a mix of local, regional, and global customers. With over 350 operational factories within its district, the intelligently designed masterplan offers ideal industrial land, storage, and logistics facilities. The area’s strategic proximity to key transport hubs, including Jebel Ali Port and Al Maktoum International Airport, further solidifies its standing in the global supply chain landscape.
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