Tecom Group invests $120m to expand Dubai innovation hub

Tecom Group, the Dubai-based operator of business parks and free zones, has broken ground on the AED 442 million ($120.34 million) Innovation Hub Phase 2 in Dubai Internet City. 

Phase 2 expands the group’s assets with two high-end office buildings, four boutique offices, retail spaces and more than 800 parking spaces. It will provide more than 355,000 square feet of gross leasable area (GLA) by 2024.

Abdulla Belhoul, CEO of Tecom Group, said: “Across our portfolio, existing customers are expanding their operations, complemented by an inflow of new foreign investment. Bespoke solutions such as the Innovation Hub address the need for high-quality commercial spaces, helping strengthen Dubai’s position as an attractive global business and talent hub.”

The group’s Q3 2022 financial performance reflected the upward trend in the commercial real estate market. Revenue stood at AED 490 million, increasing 12.48 percent year-on-year, driven by rising occupancy levels across the portfolio, especially office, warehouse, and worker accommodation.  

Launched in 2018, the first phase of the Innovation Hub is almost at full capacity, providing tech firms such as Google, Hewlett-Packard, Gartner and China Telecom a base in the region. 

With additional stages in the pipeline, the completed project is expected to add more than 1.2 million square feet of space for technology, education and new media businesses. 

According to the CORE Dubai Market Report Q3 2022, citywide office occupancy levels are the highest since the peak in 2014, up to 83 percent compared to 78 percent last year.