TECOM Group Delivers Sustained Growth with AED 2.3 Billion Revenue Milestone

The operator of Dubai's specialised business districts reports an 11 per cent year-on-year revenue increase for the first nine months of 2026, underpinned by robust demand for premium commercial and industrial assets and strategic portfolio expansion.

Dubai’s commercial real estate sector continues to demonstrate resilience and expansion as TECOM Group PJSC reports financial results that reflect the enduring appeal of its diversified portfolio of business ecosystems. For the nine months ended 30 September 2026, the group achieved revenue of AED 2.3 billion, representing an 11 per cent increase year-on-year, with recurring net profit rising 10 per cent to AED 1.2 billion.

The achievement reflects more than operational momentum. It speaks to the sustained confidence of international and regional customers in TECOM’s 10 specialised business districts, where occupancy across the combined commercial and industrial portfolio reached 97 per cent. Customer retention improved to 95 per cent from 93 per cent in the corresponding period of 2025, a telling indicator of the value that these integrated ecosystems deliver to the companies that anchor themselves within them.

Abdulla Belhoul, Chief Executive Officer of TECOM Group, attributes this strength to the resilience of the group’s business model and its portfolio of Grade-A commercial and industrial assets. “Our financial and operational results for the first nine months of 2026 underscore the strong demand for our diversified portfolio and our ability to achieve balanced growth across all our asset classes,” he said, noting that the expansion of the industrial land lease portfolio has accelerated performance, particularly in the third quarter.

The numbers bear this out across each division. Commercial assets generated AED 1.2 billion in revenue, a 10 per cent increase, with occupancy and customer retention at 95 per cent and 93 per cent respectively, reflecting sustained demand for premium office space. Industrial assets contributed AED 365 million, up 13 per cent, with occupancy reaching 98 per cent and customer retention at 97 per cent. The land lease portfolio surged 26 per cent to AED 563 million, driven by strong demand and contributions from expansion initiatives.

Operationally, EBITDA increased 11 per cent year-on-year to AED 1.8 billion, with the group maintaining an impressive EBITDA margin of 79 per cent. Funds from Operations rose 11 per cent to AED 1.6 billion, demonstrating the efficiency with which the group converts revenue into cash and the quality of its collection processes.

In the third quarter alone, revenue reached AED 809 million, a 12 per cent increase from the same period last year, with EBITDA climbing 11 per cent to AED 627 million. The land lease portfolio delivered particular momentum, expanding 35 per cent year-on-year in the quarter.

Beyond financial metrics, TECOM Group has earned recognition for its reporting standards and sustainability practices, achieving Gold status in both the 2026 European Public Real Estate Association Best Practices Recommendations Awards and the Sustainability Best Practices Recommendations Awards. The group is the first in the region to hold EPRA Gold for both financial and sustainability reporting.

The group’s ecosystem approach continues to attract strategic partnerships and operational milestones. Dubai Internet City, the region’s leading technology hub, has entered into a strategic partnership with Luxinnovation, Luxembourg’s national innovation agency, to foster cross-border collaboration and knowledge sharing. Dubai Science Park convened its Leadership Network Forum in partnership with Emirates Drug Establishment, bringing together leaders from government, healthcare and industry to discuss pharmaceutical innovation in the UAE. Meanwhile, Talal Group, one of the region’s most diversified business groups, has broken ground on a new Central Distribution Centre at Dubai Industrial City.

As the region’s tourism sector continues to surge to new heights, reaching $131.9 billion in revenues last year according to sector data, the demand for premium business infrastructure remains robust.

What it means for Abu Dhabi

TECOM’s sustained growth trajectory reflects the broader momentum across the UAE’s real estate and business infrastructure sectors. The group’s financial strength and strategic expansion reinforce Dubai’s position as a regional hub for commerce, technology and industrial operations, a complementary dynamic that benefits the entire emirates ecosystem as businesses establish regional headquarters and operational bases across the Gulf.

The emphasis on customer retention and occupancy rates suggests that businesses operating within these specialised districts find genuine operational and strategic value in their locations. This sustained confidence in established commercial infrastructure, coupled with strategic partnerships that foster innovation and knowledge sharing across borders, strengthens the competitive position of the entire region as a destination for international investment and enterprise.

Source: WAM