Tecom Group Reports Strong Financial Growth in 2025

Tecom Group has demonstrated impressive financial performance in 2025, driven by strategic land acquisitions and robust demand in the industrial sector. The company’s latest results reflect a significant increase in both revenue and net profit, highlighting its effective operational strategies and market positioning.

Financial Highlights

In the first nine months of 2025, Tecom Group’s revenue surged by 20% year-on-year, exceeding Dh2.1 billion. This growth was bolstered by higher lease rates and nearly full occupancy across its key districts. The net profit also saw an 18% increase, reaching over Dh1.1 billion, thanks to operational efficiencies and prudent capital management.

The occupancy rate for Tecom’s commercial and industrial properties climbed to 96%, a two-percentage-point increase from the previous year. Notably, land occupancy hit 98%, indicating a strong demand for Grade-A office spaces, logistics facilities, and industrial plots. This trend is largely attributed to Dubai’s appeal to foreign investors and major corporations.

Quarterly Performance

In the third quarter of 2025, Tecom reported a 19% rise in revenue, totaling Dh724 million. The EBITDA for this period increased by 13% to Dh563 million, maintaining a healthy margin of 78%. Net profit for Q3 stood at Dh373 million, reflecting a 10% growth compared to the same quarter in 2024, driven by rising lease rates and effective cost management strategies.

Strategic Investments

Tecom’s investment strategy remains robust, with a notable acquisition completed in August 2025. The company acquired 138 land plots in Dubai Industrial City for Dh1.6 billion, expanding its land bank to over 209 million square feet. This acquisition aligns with the growing demand from manufacturers and logistics firms, supporting national industrial initiatives such as Operation 300bn and Dubai’s D33 agenda.

Since last year, Tecom has committed Dh4.3 billion to strategic investments, reinforcing its capacity to meet customer needs as the UAE’s industrial sector continues to grow.

Dividend Distribution

Tecom has also successfully completed its three-year dividend program, distributing Dh400 million for the first half of 2025. This final payment brings the total dividends paid since the company’s listing in 2022 to Dh2.4 billion, reflecting its commitment to returning value to shareholders.

FAQs

What factors contributed to Tecom’s revenue growth?

Tecom’s revenue growth was primarily driven by higher lease rates, nearly full occupancy across its properties, and strategic land acquisitions.

How has Tecom’s occupancy rate changed?

Tecom’s occupancy rate for commercial and industrial properties increased to 96%, with land occupancy reaching 98%, indicating strong demand in the market.

What is the significance of Tecom’s recent land acquisition?

The recent acquisition of land plots in Dubai Industrial City expands Tecom’s land bank and supports the growing demand from the industrial sector, aligning with national economic strategies.

Conclusion

Tecom Group’s financial results for 2025 showcase a strong upward trajectory, fueled by strategic investments and a thriving industrial sector. As the company continues to focus on disciplined expansion and operational efficiency, it is well-positioned to capitalize on future growth opportunities in the UAE market.

Tecom Group’s performance in 2025 reflects broader trends in the UAE’s economy, particularly in the industrial and commercial real estate sectors. The government’s initiatives to diversify the economy and attract foreign investment have created a favorable environment for companies like Tecom. The emphasis on infrastructure development and the establishment of free zones has further enhanced the attractiveness of Dubai as a business hub, contributing to the increased demand for high-quality industrial and commercial spaces.

Moreover, the company’s strategic focus on sustainability and innovation has positioned it well within the competitive landscape. Tecom has been actively integrating smart technologies into its properties, which not only improves operational efficiency but also appeals to environmentally conscious tenants. This alignment with global sustainability trends is likely to enhance its market appeal and support long-term growth.

As Tecom Group continues to expand its portfolio and adapt to market dynamics, it remains committed to maintaining high standards of service and operational excellence. This approach is expected to solidify its reputation as a leading player in the UAE’s real estate sector, ensuring sustained interest from both local and international investors.

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