TECOM Group Unlocks AED 2 Billion in Growth Opportunities with Strategic Acquisition and New Developments

TECOM Group’s Latest Expansion Solidifies Its Leadership in Dubai’s Commercial and Industrial Real Estate, Driving Sustainable Growth and Innovation

TECOM Group PJSC (DFM: TECOM), a pioneering developer of specialized business districts and vibrant communities in Dubai, has marked a significant milestone with the completion of strategic acquisitions and the launch of new developments. The Group’s comprehensive AED 1.7 billion strategic plan, announced in May 2024, has now culminated in the acquisition of new commercial and industrial assets, positioning TECOM Group at the forefront of Dubai’s rapidly evolving business landscape.

In a parallel announcement, TECOM Group revealed plans to develop premium Grade-A office spaces worth AED 340 million at Dubai Internet City with the launch of Innovation Hub Phase 3. These initiatives elevate the Group’s total investments for 2024 to over AED 2 billion, underscoring its commitment to driving sustainable growth and enhancing Dubai’s global business appeal.

Strategic Expansion and Acquisition

The recent strategic acquisitions have bolstered TECOM Group’s commercial and industrial portfolio, expanding its gross leasable area (GLA) to over 10 million square feet and increasing its land leasing portfolio to 179 million square feet. This expansion not only reinforces TECOM Group’s position as a leader in Dubai’s commercial and industrial real estate market but also aligns with Dubai’s broader economic goals, including the Dubai Economic Agenda ‘D33’.

“The new strategic acquisitions and projects worth AED 2 billion reflect TECOM Group’s vision of fostering sustainable growth,” said Abdulla Belhoul, Chief Executive Officer of TECOM Group PJSC. “TECOM Group is committed to continuing its pivotal role in bolstering the UAE’s and Dubai’s knowledge-based economy and shaping the future of business through our world-class ecosystems that attract and empower globally renowned companies and talent across our 10 specialized business districts.”

Commercial Office Space Expansion

Further cementing its status as a premier developer of workspace environments, TECOM Group has embarked on a substantial expansion within Dubai Design District (d3). The second phase of d3’s development involves the creation of six Grade-A office buildings, spanning a gross floor area of 629,000 square feet. Representing an AED 825 million investment, this development will cater to the growing demand from top-tier global companies in the creative sectors.

Designed with a focus on sustainability, these office spaces will offer stunning views of the Dubai skyline, including the iconic Burj Khalifa, and are set to provide a harmonious blend of work and leisure with amenities such as sports facilities, community spaces, fine dining options, and an extended promenade. “Phase 2 of Dubai Design District (d3) is a landmark development that will significantly contribute to Dubai’s thriving design, fashion, and creative sectors,” Belhoul noted. Set for completion by the first half of 2028, this development promises to attract global talent and elevate Dubai’s status as a global hub for culture and creativity.

Innovation Hub Phase 3 at Dubai Internet City

In addition to d3’s expansion, TECOM Group has announced the launch of Innovation Hub Phase 3 at Dubai Internet City, an AED 340 million project that will meet the growing demand for premium commercial real estate in the city. This development, set to be completed by mid-2027, will offer more than 167,000 square feet of Grade-A office spaces, designed to accommodate the needs of technology sector leaders and other high-profile tenants.

The previous phases of Innovation Hub have already demonstrated TECOM Group’s ability to create desirable office environments, with Phase 2’s 366,000 square feet of space fully leased ahead of its 2025 delivery date. Phase 1 continues to maintain full occupancy, reinforcing the Group’s reputation for delivering exceptional workspaces that attract leading global companies.

Acquisition of Grade-A Buildings at Dubai Internet City

TECOM Group’s strategic growth is further highlighted by the acquisition of two operational Grade-A office buildings at Dubai Internet City. The AED 420 million transaction adds 334,000 square feet of premium GLA to the Group’s commercial portfolio, with both buildings already enjoying high occupancy rates supported by a mix of regional and international companies. This acquisition is expected to contribute positively to TECOM Group’s revenue stream, reflecting the ongoing demand for high-quality office spaces in Dubai.

Industrial Portfolio Expansion

Aligned with Dubai’s economic vision and transformative initiatives such as Operation 300bn and Make it in the Emirates, TECOM Group has also expanded its industrial portfolio. The acquisition of a 13.9 million square foot land bank for industrial leasing at Dubai Industrial City, through an AED 410 million transaction, reinforces the Group’s position as the premier destination for the manufacturing and logistics sectors in the region. This additional land bank is already attracting interest for long-term leasing, further solidifying Dubai Industrial City’s role as a leading hub for global manufacturing and logistics.

Strong Financial Fundamentals

TECOM Group continues to demonstrate robust performance across all business segments, driven by strong demand for its commercial and industrial assets and Dubai’s favorable economic environment. The Group’s solid financial position and improved credit terms provide the flexibility to seize strategic opportunities, supporting future growth while maintaining healthy leverage and liquidity.

As TECOM Group continues to execute its strategic expansion plans, these new acquisitions and developments underscore the Group’s commitment to fostering sustainable growth, enhancing Dubai’s global business stature, and driving innovation across multiple sectors. With over AED 2 billion in investments in 2024 alone, TECOM Group is not only expanding its portfolio but also shaping the future of business in Dubai, ensuring its role as a pivotal player in the city’s economic landscape.