Dubai's Tecom Group net profit soars to Dh943 million on high office demand

Dubai: The boom in Dubai office and commercial real estate space is sitting well on Tecom Group's results, with revenues in the first nine months up 10% to Dh1.7 billion. A sharper rise happened on the bottom line, at 23% higher to Dh943 million.

In fact, the July to end September period set a new record for Tecom, with revenues increasing 12% to Dh611 million and quarterly net profit rising 20% to Dh340 million.

“We achieved significant growth in revenue and profitability, driven by high occupancy rates across our diversified portfolio of premium commercial, industrial, and land lease assets," said Abdulla Belhoul, CEO of Tecom Group. "This performance further underscores our ability to attract and retain top companies across six vital sectors.

"Our prudent financial strategies and proactive cost management initiatives have also contributed significantly to our impressive bottom-line performance."

The Dubai operator of free zones and commercial hubs has been engaged in some sizeable deal-making too to add to its real estate portfolio. There's the recent one with Emirates REIT for an office block as well as new office building investments in d3 (Dubai Design District).

Add more office, land to portfolio

Tecom has had a busy nine months on the investment side, having deployed Dh2 billion on 'strategic assets'. This includes adding a land bank of 13.9 million square feet for industrial leasing at Dubai Industrial City and two operational Grade-A office buildings, as well as launch the Innovation Hub Phase 3 in Dubai Internet City.

"The investments are aligned with the group’s strategic roadmap for sustainable growth through targeted acquisitions and the development of high-quality commercial real estate," said a statement. "The investments were further uplifted by the acquisition of Office Park (from Emirates REIT), which upon initiation during Q3-2024 raised Tecom Group’s total asset investments during 2024 to Dh2.7 billion."