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Tecom profit up amid rise in commercial space demand

By Pramod Kumar
Adult, Female, Person Tecom Group
Pre-construction work is underway on phase 3 of the Innovation Hub at Dubai Internet City and phase 2 of Dubai Design District

Dubai-listed Tecom Group reported a 20 percent year-on-year increase in net profit to AED340 million ($92.6 million) in the third quarter of 2024, driven by steady demand for premium commercial and industrial properties.

Revenue for the quarter rose 12 percent annually to AED611 million, supported by Dubai’s strong economic fundamentals and growing demand for commercial and industrial real estate.

“We have 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 CEO Abdulla Belhoul.

For the first nine months of 2024, revenue increased 10 percent year on year to AED1.7 billion due to new customers, rising rentals and robust occupancy across all segments. Net profit climbed 23 percent year on year to AED943 million.

Occupancy across commercial and industrial assets grew to 94 percent, while land occupancy reached 90 percent by September 2024. This was fuelled by healthy demand for premium Grade-A office spaces, as well as storage and logistics facilities.

Customer numbers rose by 9 percent to more than 11,800. Retention rates in the commercial and industrial sectors stood at 90 percent and 95 percent, respectively, as of September 30, 2024.

Tecom said it will continue to focus on project delivery across its business districts, with phase 2 of Innovation Hub, which is fully leased out, on track to be handed over by the first quarter of 2025.

The second phase of storage and logistics spaces under development at Dubai Science Park will likely be delivered in Q1 2025.

Pre-construction work is underway on phase 3 of the Innovation Hub at Dubai Internet City and phase 2 of Dubai Design District.

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