TECOM Group, a leading developer and operator of specialised business districts across Dubai, announced robust financial results for the second quarter (Q2) and first half (H1) of 2025, ending June 30.
The group reported a 22 percent year-on-year (YoY) increase in net profit to AED 737 million for H1 2025, with revenue rising 21 percent YoY to AED 1.4 billion.
The strong performance reflects sustained demand across TECOM Group’s 10 business districts, serving six vital economic sectors, and reinforces Dubai’s position as a global hub for foreign direct investment (FDI).
Read: Dubai’s TECOM Group posts $185.1 million in revenues, up 21 percent YoY
H1 2025 financial highlights
- Revenue rose 21 percent YoY to AED 1.4 billion, driven by higher occupancy and rental rates, as well as income from strategic asset acquisitions in 2024.
- EBITDA grew 24 percent YoY to AED 1.1 billion, maintaining healthy margins of 80 percent (+2 percent YoY), demonstrating efficient operational performance.
- Net profit reached AED 737 million, up 22 percent YoY, supported by strong revenue growth and capital optimisation.
- Funds from Operations (FFO) increased 17 percent YoY to AED 984 million, indicating stable cash flows and improved revenue quality.
- Commercial and Industrial portfolio occupancy reached 95 percent (+3 percent YoY), highlighting continued demand from international clients.
- Land Lease occupancy hit 99 percent (+3 percent YoY), fuelled by growth in the industrial sector and supported by UAE strategies such as Operation 300bn, Make it in the Emirates, and Dubai Economic Agenda ‘D33’.
- Dubai Industrial City, part of TECOM Group, continues to report high occupancy, reinforcing its role as a top regional hub for manufacturing and logistics.
- The board of directors approved an interim dividend of AED 400 million for H1 2025, in line with the current Dividend Policy, which is valid until September. A new policy — featuring an expected 10 percent increase — will be proposed for H2 2025, pending shareholder approval.
Q2 2025 financial performance
- Revenue rose 22 percent YoY to AED 709 million, backed by high occupancy and retention across Commercial, Industrial, and Land Lease segments.
- EBITDA increased 24 percent YoY to AED 568 million, maintaining an 80 percent EBITDA margin (+2 percent YoY).
- Net profit for Q2 stood at AED 377 million, up 21 percent YoY, driven by margin improvement and operational efficiency.
H1 2025 operational highlights
- PayPal launched its first Middle East and Africa regional HQ at Dubai Internet City in April.
- Pure Ice Cream began construction of its AED 80 million plant at Dubai Industrial City in May.
- Dubai Media City supported the unveiling of the Arab Media Outlook – Future Vision report at the Arab Media Summit.
- Dubai Design District (d3) celebrated over 10 years of creative innovation by launching the d3 Awards.
- IMCD, a global chemicals and ingredients leader, opened new offices and Technical Centres in Dubai Science Park.
- Dubai Knowledge Park and Dubai International Academic City promoted UAE educational opportunities at the China International Education Exhibition Tour, alongside KHDA, DET, and Dubai Chambers.
Malek Al Malek, chairman of TECOM Group, said: “The UAE and Dubai are continuing their journey of sustainable development, achieving record growth and exceptional accomplishments across all economic sectors. Their success is positively reflected in TECOM Group’s H1 2025 performance, demonstrating our fundamental strengths and agility in addressing growing demand from the commercial and industrial market, while focusing on operational efficiency to create long-term value for our shareholders. The board has approved an interim cash dividend of AED 400 million for H1 2025, aligned with our Dividend Policy.”
Abdulla Belhoul, CEO of TECOM Group, said: “Our financial and operational growth in H1 2025 reflects the success of TECOM Group’s roadmap for long-term growth through our recent strategic investments and attracting new customers. The group’s robust performance is a step forward in our journey to enable a sustainable future through our ecosystems, solidifying the UAE’s and Dubai’s appeal as a global destination for investment and the ease of doing business.”
Sharia compliance certification
TECOM Group has received Sharia compliance certification from the Shariyah Review Bureau (SRB) for the fiscal period ending March 31, 2025. Already listed on the Sharia Classification List of the Dubai Financial Market, the group will continue periodic reviews to ensure ongoing compliance with AAOIFI standards. This certification is informational and does not constitute investment advice.
H1 2025 ESG highlights
- The group now has 55 LEED-certified buildings, up 34 percent YoY, underscoring its focus on sustainability.
- TECOM’s solar projects delivered 8 gigawatt hours (GWh) of renewable energy.
- in5, its innovation incubator, issued 86 new licenses across tech, media, design, and science sectors.
- 35.4 percent of the workforce now comprises women, aligned with national gender balance goals.
- TECOM and the Dubai Charity Association launched the third edition of The Good Store, facilitating charitable giving during Ramadan and Eid.
TECOM Group’s consistent growth across financial, operational, and ESG fronts highlights its strategic role in shaping Dubai’s diversified economy and underscores investor confidence in the emirate’s long-term development trajectory.
