Tecom profit rises 49% on growing customer demand

Tecom Group

Tecom Group saw net profit for 2023 rise 49 percent year on year to AED1.1 billion ($299.48 million) on robust demand from new and existing customers across all its six business clusters.

The company registered broad-based growth across the business, owing to the group’s ongoing efforts to enhance operations and reduce costs.

Revenue reached a record AED2.2 billion, up 10 percent year on year. As of December 31, 2023, the occupancy rate for commercial and industrial portfolios stood at 89 percent, registering the third quarter of growth and an increase from 86 percent in 2022.

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Demand for industrial land was strong, as the occupancy rate rose to 94 percent, compared to 81 percent in 2022.

“2023 was a remarkable year for the UAE and Dubai’s economy, supported by strong performance across several sectors, including the commercial real estate sector, which has outperformed other global markets,” said Malek Al Malek, chairman of Tecom Group.

Abdulla Belhoul, CEO of Tecom, added that the company’s strong financial performance reflected its ability to capitalise on favourable opportunities in Dubai’s attractive commercial and industrial market.

Funds from operations reached AED 1.4 billion, rising 21 percent year on year on improved collections and increased performance of income-generating assets.

The Tecom board proposed a dividend payment of AED400 million for the second half of 2023, subject to shareholder approval at its upcoming annual general meeting on March 4.