Tecom Group Plans Dh1.6 Billion Expansion in Dubai Industrial City

Strategic acquisition pushes total investments to Dh4.3 billion since 2024, strengthening Dubai’s position as a global hub for manufacturing and logistics

Tecom Group PJSC has announced a landmark Dh1.6 billion investment to acquire 138 land plots spanning 33 million square feet in Dubai Industrial City, one of the region’s leading manufacturing and logistics hubs. The move, approved by the Group’s Board of Directors, raises Tecom Group’s total investments since 2024 to Dh4.3 billion, reflecting robust customer demand for industrial and commercial assets.

The acquisition, executed by the Group’s subsidiary Dubai Industrial City LLC, will expand the district’s land portfolio to more than 209 million square feet. This strengthens Dubai Industrial City’s appeal to global manufacturing and logistics firms, particularly as the hub currently operates at an impressive 99% occupancy rate, including land acquired last year.

“This strategic acquisition demonstrates Tecom Group’s role as a major contributor in the industrial sector in both the UAE and Dubai,” said Abdulla Belhoul, Chief Executive Officer of Tecom Group PJSC. “With a future-focused strategy underpinned by our healthy liquidity, we are leveraging favorable market dynamics and actively investing in our world-class portfolio of industrial assets to unlock long-term value for our shareholders.”

Belhoul noted that the expansion aligns with national strategies such as Operation 300bn, Make it in the Emirates, and Dubai Economic Agenda D33, while also reinforcing the UAE’s position under the Comprehensive Economic Partnership Agreement (CEPA) framework as a global hub for foreign direct investment.

Building on Strong Momentum

The Dh1.6 billion acquisition follows Tecom Group’s purchase of 13.9 million square feet of land in Dubai Industrial City last year, which has since been fully leased out across six critical sectors including food and beverage, base metals, and transport. The new land bank is expected to start generating revenue within 12–24 months, financed through the Group’s existing resources under a flexible repayment schedule.

The expansion comes on the back of Tecom Group’s strong H1 2025 financial performance, which included a 22% year-on-year increase in net profit to Dh737 million and a 21% rise in revenue to Dh1.4 billion. With continued rental growth and high occupancy rates, the Group remains well-positioned to attract international clients to its integrated business districts.

Cementing Dubai’s Role in Global Supply Chains

Established in 2004, Dubai Industrial City has become the region’s premier hub for manufacturing and logistics. It is home to more than 350 operational factories and a diverse mix of homegrown, regional, and international companies. Its strategically designed masterplan, offering industrial land, storage, and logistics spaces, coupled with proximity to Jebel Ali Port, Al Maktoum International Airport, and the upcoming Etihad Rail freight terminal, has further solidified its role as a vital player in global supply chains.

Tecom Group emphasized that all regulatory and governance standards were upheld during the acquisition process, with valuations conducted by independent and accredited parties.

With this expansion, Dubai Industrial City is poised to meet accelerating industrial demand, further supporting the UAE’s economic diversification goals and cementing Dubai’s status as a global manufacturing and logistics hub.