TECOM’s Bold Move Boosts Dubai Industrial City Footprint

TECOM Group has committed AED 1.6 billion to acquire 138 land plots totalling 33 million sq ft from Dubai Holding Asset Management. The move enlarges the Group’s land portfolio to over 209 million sq ft and directly addresses strong customer demand for industrial space at Dubai Industrial City, which currently operates at 99 per cent occupancy.

The acquisition reinforces TECOM Group’s role as a key contributor to the industrial sector within the UAE, aligning with national economic objectives such as Operation 300 bn, Make it in the Emirates, and the Dubai Economic Agenda ‘D33’.

Chief Executive Officer Abdulla Belhoul stated that the transaction underscores the nation’s emergence as a global hub for foreign direct investment, facilitated by frameworks like the Comprehensive Economic Partnership Agreement. He emphasised that the acquisition reaffirms Dubai Industrial City’s vital position in supporting the manufacturing sector and meeting growing industrial demand.

This deal builds on TECOM Group’s strategic expansion within its Commercial and Industrial portfolio, bringing total investments since 2024 to AED 4.3 billion. In 2024, the Group acquired 13.9 million sq ft in Dubai Industrial City, all of which has been fully leased across sectors including food and beverage, base metals, and transport.

The acquisition will be financed through TECOM Group’s existing resources, with payment structured over a flexible schedule. Revenue recognition from the new land plots is expected to commence within 12 to 24 months. The Group continues to maintain a healthy liquidity and leverage position.

This development follows the Group’s robust financial performance in the first half of 2025, which saw net profit increase by 22 per cent year-on-year to AED 737 million, and revenue rise by 21 per cent to AED 1.4 billion, supported by high occupancy and improving rental yields.

Dubai Industrial City, established in 2004 and now home to over 350 operational factories, caters to homegrown, regional and international clients. Its strategic location—adjacent to Jebel Ali Port, Al Maktoum International Airport, and the Etihad Rail freight terminal—cements its status as a critical node in global supply chains and logistics.

TECOM’s move is also seen as a bold vote of confidence in Dubai’s industrial real estate sector. Analysis indicates that the Group will fund the purchase over three years, using over AED 3 billion in available cash and a AED 2.3 billion undrawn credit line, with closure expected by 4 September 2025.

Market observers note that the new land acquisition follows a pattern of industrial land demand outstripping supply in the city. Dubai Industrial City’s near-full occupancy, despite prior expansion, speaks volumes about the pace and scale of investor and tenant interest in the manufacturing ecosystem.