TECOM Group has made a significant investment of Dhs1.6 billion to purchase 138 land parcels totaling 33 million square feet from Dubai Holding Asset Management, a move aimed at enhancing its industrial portfolio amid rising customer demand.
This acquisition will increase TECOM Group’s total land area to over 209 million square feet and further bolster the attractiveness of Dubai Industrial City, one of the largest manufacturing and logistics centers in the region. Currently, the district boasts a 99 percent occupancy rate, including previously acquired land, as the UAE’s manufacturing sector continues to expand in line with national initiatives like Operation 300bn, Make it in the Emirates, and the Dubai Economic Agenda ‘D33’.
Abdulla Belhoul, CEO of TECOM Group, stated, “This strategic acquisition highlights our significant role in the industrial sector within both the UAE and Dubai. Driven by strong macroeconomic conditions and long-term frameworks such as the Comprehensive Economic Partnership Agreement (CEPA), our country is reinforcing its status as a global destination for foreign direct investment. This acquisition underscores the crucial role of Dubai Industrial City in fostering the manufacturing sector and satisfying the increasing demand from both existing and prospective clients.”
He further mentioned, “Our forward-thinking strategy, supported by solid liquidity, allows us to take advantage of favorable market conditions while actively investing in the enhancement of our world-class industrial asset portfolio, ultimately delivering greater long-term value for our shareholders.”
The latest investment enhances TECOM Group’s strategic growth, raising its total investments in its commercial and industrial portfolio to Dhs4.3 billion since 2024. Last year, the Group secured 13.9 million square feet of land in Dubai Industrial City, which has now been fully leased to clients across six vital sectors such as food and beverage, base metals, and transportation.
Note: TECOM Group has recently announced a leadership transition with the appointment of a new CFO.
This latest acquisition, carried out through the subsidiary Dubai Industrial City, will utilize existing resources under a flexible repayment structure. The revenue from the new land plots is anticipated to start flowing in within 12 to 24 months, while the Group continues to maintain a robust leverage and liquidity position.
The transaction adhered to international best practices and regulatory standards, including independent valuations conducted by accredited professionals.
The announcement follows TECOM Group’s impressive H1 2025 performance, which showed a net profit increase of 22 percent year-on-year, reaching Dhs737 million, alongside a 21 percent rise in revenue to Dhs1.4 billion, driven by high occupancy rates and growing rental yields.
Founded in 2004, Dubai Industrial City is home to over 350 operational factories, catering to regional and international clients with industrial land, storage, and logistics offerings. Its strategic positioning near key infrastructure such as Jebel Ali Port, Al Maktoum International Airport, and the Etihad Rail freight terminal enhances its significance in global supply chains.