TECOM Group's AED 1.6 Billion Investment Strengthens Manufacturing In Dubai Industrial City

TECOM Group PJSC, known for developing specialised business districts, has made a significant move by investing AED 1.6 billion to purchase 138 land plots totaling 33 million sq.ft. This substantial investment aims to cater to the increasing demand within the industrial sector.

This strategic move not only expands TECOM's land portfolio to over 209 million sq.ft. but also strengthens Dubai Industrial City's position as a leading hub for manufacturing and logistics companies. The acquisition from Dubai Holding Asset Management is set to enhance the city's appeal and its capacity to meet the needs of both existing and prospective customers.

Currently, Dubai Industrial City boasts an impressive 99% occupancy rate, which includes land plots acquired in the previous year, highlighting the rapid growth in the UAE's manufacturing sector driven by initiatives like Operation 300bn, Make it in the Emirates, and the Dubai Economic Agenda 'D33'.

Abdulla Belhoul, CEO of TECOM Group PJSC, emphasised the importance of this acquisition, stating, "This strategic acquisition demonstrates TECOM Group's role as a major contributor in the industrial sector in both the UAE and Dubai."

He further highlighted the significance of the nation's macroeconomic foundations and strategic initiatives like the Comprehensive Economic Partnership Agreement (CEPA) framework in establishing the UAE as a global hub for foreign direct investment.

"This strategic acquisition reaffirms Dubai Industrial City's significant role in advancing the country's manufacturing sector and serving growing demand from existing and new customers," Belhoul added. He expressed confidence in the future-focused strategy, supported by healthy liquidity, which aims at leveraging favorable market dynamics to expand the Group's portfolio of industrial assets, ultimately enhancing shareholder value over the long term.

This acquisition marks a continuation of TECOM Group's strategic growth plan, boosting the Group's total investments in its commercial and industrial portfolio to AED 4.3 billion since 2024. The decision to expand was driven by the subsidiary Dubai Industrial City LLC and reflects the increasing demand for industrial assets. This follows the successful leasing of 13.9 million sq.ft. of land acquired last year in Dubai Industrial City to leading customers across key sectors, including the food and beverage, base metals, and transport industries.

TECOM Group plans to finance this new acquisition through existing resources, with a flexible repayment schedule in place. The company anticipates recognizing revenue from the additional land bank within the next 12 to 24 months. Moreover, the Group is committed to maintaining a healthy leverage and liquidity position following this acquisition.

In adherence to regulatory and governance standards, TECOM Group ensured the valuation of the new acquisition was conducted through credible and independent parties accredited by regulatory authorities, following international standards of appraisals and best practices.

The proactive expansion aligns with TECOM Group's impressive financial performance in the first half of 2025, which saw a 22% increase in net profit to AED 737 million and a 21% rise in revenue year-on-year to AED 1.4 billion. The Group's ability to attract international customers through its vibrant business districts is evidenced by continuing growth in rental rates and strong occupancy levels.

Dubai Industrial City, established in 2004 as part of TECOM Group, has emerged as the leading manufacturing and logistics hub in the region. It serves a wide array of customers, from local enterprises to global corporations, and houses over 350 operational factories.

Its strategic masterplan, which includes industrial land, storage, and logistics spaces, combined with its proximity to key transportation hubs like Jebel Ali Port, Al Maktoum International Airport, and an Etihad Rail freight terminal, positions it as a prime location within the global supply chain.