Post by : Bianca
Haleem
TECOM Group PJSC (DFM: TECOM), known for developing business districts in Dubai, has revealed impressive financial outcomes for Q1 2026. The company experienced a notable increase in both revenue and profit, bolstered by heightened demand for its commercial and industrial assets.
Robust Financial Results
In the first quarter, TECOM Group reported revenue hitting AED 755 million, representing an 11% rise year-on-year. This increase stemmed from portfolio growth, soaring occupancy rates, enhanced rental agreements, and successful deliveries from projects completed in 2025.
The Group’s EBITDA surged by 13%, reaching AED 610 million, with a remarkable margin of 81%, attributable to meticulous cost control and operational excellence.
Net profits from recurring actions rose by 12% to AED 403 million, reflecting stronger EBITDA and effective financial stewardship.
Additionally, Funds from Operations (FFO) climbed by 14% to AED 549 million, demonstrating robust cash flow generation alongside a stable, diversified client base.
Occupancy Rates and Demand
TECOM Group showcased remarkable performance across its portfolio with commercial and industrial assets maintaining a 98% occupancy rate.
Customer loyalty remained high, with a retention rate of 94% in commercial properties and 99% within the industrial segment, pointing to durable customer connections and enduring interest in its business districts.
The company also reported a weighted average lease term (WALT) of 8.8 years, indicating stable long-term leasing commitments.
Growth Across Sectors
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Commercial properties experienced strong revenue advancements due to high occupancy and new property contributions.
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Industrial assets exhibited consistent growth amidst strong demand and expansion in industrial territory with leasing strategies on course.
Significant Operational Developments
Throughout Q1 2026, TECOM Group highlighted several key developments:
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Dubai Media City celebrated its 25th anniversary as a creative industries hotspot.
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Dubai Science Park marked 20 years of fostering scientific and research advancement.
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Dubai Industrial City showcased its expanding food and beverage ecosystem at Gulfood 2026.
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Dubai International Academic City and Dubai Knowledge Park welcomed over 38,500 students, reflecting a 15% year-on-year increase.
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ALAS Emirates Ready Mix announced plans for a cutting-edge facility in Dubai Industrial City.
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AmSpec Group unveiled a new Agri & Food laboratory in Dubai Science Park.
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Geneva College of Longevity Science hosted its second global symposium in collaboration with Dubai Science Park.
Insight from the CEO
TECOM Group’s CEO Abdulla Belhoul remarked that these strong outcomes reflect the robustness of Dubai’s economy and the confidence of investors. He emphasized that the company’s diversified business model, high occupancy rates, and long-term leasing approaches are integral to fostering sustainable growth.
Additionally, he reiterated TECOM Group’s dedication to championing future-focused industries and enhancing Dubai’s status as a leading global business and knowledge center.
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