Profit up 15% at Dubai’s free zone operator Tecom

Tecom Group, the Dubai-based operator of business parks and free zones, said earnings rose 15 percent year on year in the first quarter of 2024, driven by high demand for office and industrial space.

Net profit reached AED293 million ($80 million) in the quarter ended March 2024, compared to AED255 million a year ago.

Revenue increased 10 percent annually to AED564 million.

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Occupancy levels in the commercial and industrial segment reached an all-time high of 91 percent in the first quarter of 2024 versus 87 percent a year earlier. Land leases rose to 95 percent, 11 percent higher year on year.

“Demand from new customers across the six sectors we serve is palpable, notably for Grade A offices and industrial properties,” CEO Abdulla Belhoul said.

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He added that the company expects the demand-induced growth momentum to be sustained for the rest of the year.

The number of customers rose 10 percent year on year to more than 11,000 in the first quarter, with customer retention rates within the industrial leasing portfolio reaching 98 percent.