TECOM Group has announced a significant investment of Dhs1.6bn to acquire 138 land parcels covering an area of 33 million sq.ft. from Dubai Holding Asset Management. This move aims to bolster its industrial portfolio in response to rising customer needs.
This purchase will elevate TECOM Group’s total land area to over 209 million sq.ft. and enhance the attractiveness of Dubai Industrial City, one of the largest manufacturing and logistics centers in the region. Currently, the district operates at an impressive 99 percent occupancy, benefiting from land acquisitions made last year, as the UAE’s manufacturing sector thrives under various national initiatives like Operation 300bn, Make it in the Emirates, and the Dubai Economic Agenda ‘D33’.
“This strategic acquisition highlights TECOM Group’s pivotal role in the industrial sector within both the UAE and Dubai,” stated Abdulla Belhoul, CEO of TECOM Group. “Fueled by strong macroeconomic factors and long-range strategies like the Comprehensive Economic Partnership Agreement (CEPA) framework, our country is reinforcing its status as a global center for foreign direct investment. This acquisition further solidifies Dubai Industrial City’s critical function in promoting the manufacturing sector and addressing the growing needs of both existing and new clients.”
He further elaborated, “With a future-oriented strategy supported by our strong liquidity, we are taking advantage of favorable market trends and actively investing to expand our premier portfolio of industrial assets, aiming to unlock greater long-term value for our shareholders.”
The investment complements TECOM Group’s ongoing strategic growth, increasing its total investments across its Commercial and Industrial divisions to Dhs4.3bn since 2024. Last year, the Group secured 13.9 million sq.ft. of land within Dubai Industrial City, which has now been fully leased to clients in six major sectors, including food and beverage, base metals, and transportation.
Note: TECOM Group has also recently announced a leadership change, appointing a new CFO.
This latest acquisition, conducted via its subsidiary Dubai Industrial City, will be funded through existing financial resources under a flexible repayment arrangement. Revenue from these new land plots is anticipated to begin flowing within 12 to 24 months, while maintaining a strong position in terms of leverage and liquidity.
The transaction adhered to international best practices and regulatory standards, including valuations conducted by independent accredited entities.
This announcement follows the impressive results reported by TECOM Group for H1 2025, where net profit surged by 22 percent year-on-year, reaching Dhs737m, and revenue increased by 21 percent to Dhs1.4bn, driven by high occupancy rates and rising rental income.
Since its establishment in 2004, Dubai Industrial City has become home to over 350 operational factories, catering to both regional and global clients with industrial land, storage, and logistics facilities. Its strategic location near Jebel Ali Port, Al Maktoum International Airport, and the Etihad Rail freight terminal underscores its importance as a key player in global supply chains.