Dubai’s TECOM Group reported a 24 per cent year-on-year increase in net profit for H1 2024, reaching AED 603M. This growth was driven by strong occupancy rates and an effective business strategy, leading to a 9 per cent rise in revenue to AED 1.1B.
The group, known for developing specialised business districts in Dubai, achieved occupancy rates exceeding 92 per cent across its commercial and industrial properties. Additionally, land lease occupancy rose by 11 per cent, reaching 96 per cent.
TECOM’s funds from operations (FFO) also grew by 24 per cent year-on-year, totalling AED 840M. The group’s EBITDA for H1 2024 increased by 9 per cent to AED 896M, underpinned by revenue growth and operational improvements. The EBITDA margin remained strong at 78 per cent, despite a slight dip from the previous year.
In light of these results, TECOM’s Board approved an interim dividend of AED 400M for the first half of the year, with distribution expected by September. This is part of the group’s policy to distribute an annual dividend of AED 800M through September 2025.
TECOM also welcomed over 1,000 new clients during H1 2024, highlighting the demand for its specialised districts. Significant developments included the expansion of Dubai Industrial City and the launch of the first permanent Middle East campus of L’ÉCOLE, School of Jewelry Arts, at Dubai Design District.
CEO Abdulla Belhoul emphasised the group’s role in supporting Dubai’s knowledge-based economy, noting high occupancy levels and continued demand in the commercial real estate market. The group also advanced its sustainability efforts, increasing LEED-certified buildings to 41, boosting solar power generation to 9.7 per cent, and enhancing electric vehicle infrastructure.
