Post by : Mariam
Al-Faris
Photo: Dubai Government Media Office
TECOM Group PJSC, listed on the Dubai Financial Market as “TECOM,” has shared its financial performance for the first half of the year 2025. The company, which builds and manages special business areas across Dubai, reported very strong growth. Between January and June 2025, TECOM made a net profit of AED 737 million. This is 22% more than what it made during the same period in 2024. The company also earned AED 1.4 billion in total revenue, which is a 21% increase from last year.
TECOM Helps Dubai Become a Business Hub
This positive result shows that TECOM is an important partner for both regional and international businesses. TECOM runs 10 different business areas across Dubai that serve six key sectors of the economy. These areas help attract foreign investment and make Dubai an attractive place to do business. By offering strong services and spaces for offices, factories, and land use, TECOM supports Dubai and the UAE’s position as a global business center.
Chairman Praises UAE’s Development
Malek Al Malek, the Chairman of TECOM Group, said the good results come from the UAE and Dubai’s continued success in sustainable development. He added that the country’s economic achievements are reflected in TECOM’s business. TECOM has been flexible and quick to meet the growing needs of the market. He also shared that the Board of Directors approved an interim dividend payment of AED 400 million for the first half of 2025, which follows the company’s current Dividend Policy.
CEO Highlights Growth Strategy
Abdulla Belhoul, the CEO of TECOM Group, said the company’s growth is the result of strategic investments and attracting new customers. He explained that TECOM is not only making money but also helping to build a sustainable future by creating business environments that support innovation and global investment. He said the Group is proud to support the UAE’s image as a country that is easy to invest and do business in.
Financial Numbers for H1 2025
In the first half of 2025, TECOM earned AED 1.4 billion in revenue. This was supported by higher rent and better use of buildings and land. The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose 24% to AED 1.1 billion. EBITDA margin also improved to 80%, showing better cost management. Net profit increased by 22% to reach AED 737 million, and funds from operations (FFO) went up 17% to AED 984 million. These results were helped by good cash collection and high-quality income sources.
High Occupancy Rates
TECOM’s commercial and industrial spaces were 95% full by the end of June 2025. This is a 3% increase from last year. Land Lease occupancy was even higher at 99%, also up by 3%. This strong performance was driven by rising demand, especially in the industrial sector. Dubai Industrial City, one of TECOM’s projects, showed very strong occupancy and is now considered a top manufacturing and logistics center in the region.
Government Plans Help Demand
TECOM’s success is also linked to national strategies such as Operation 300bn, Make it in the Emirates, and the Dubai Economic Agenda known as ‘D33’. These plans aim to grow the local industrial sector and make the UAE a global production leader. TECOM is helping these goals by offering space and services for companies involved in manufacturing and trade.
Q2 2025 Financial Update
For the second quarter alone, TECOM earned AED 709 million in revenue, which is 22% more than Q2 2024. EBITDA rose 24% to AED 568 million, and EBITDA margin improved to 80%. Net profit during Q2 was AED 377 million, a 21% increase from the same time last year. This strong result was made possible through high occupancy and better operational efficiency.
Dividend for First Half 2025
TECOM’s Board of Directors approved a cash dividend of AED 400 million for H1 2025. This follows their current Dividend Policy, which is valid until September 2025. A new policy is expected for the second half of the year. According to TECOM, dividends may increase by 10%, subject to shareholder approval at the next Annual General Assembly Meeting.
Big Business Moves in H1 2025
Several major business developments took place in TECOM districts during the first half of 2025. In April, PayPal opened its first headquarters in the Middle East and Africa at Dubai Internet City. This area is responsible for generating 65% of Dubai’s technology sector output. In May, Pure Ice Cream started building a factory worth AED 80 million in Dubai Industrial City. Also in May, Dubai Media City hosted the launch of the Arab Media Outlook report.
Design and Innovation Recognized
Dubai Design District (d3) celebrated more than 10 years of helping the creative industry. During the event, it introduced the d3 Awards, a platform to recognize talent in the design field. In June, IMCD, a global chemical and ingredients company, opened offices and technical centers in Dubai Science Park, expanding its presence in the Middle East.
Support for Education and Culture
In April, Dubai Knowledge Park and Dubai International Academic City took part in an education exhibition in China. They joined with Dubai’s Knowledge and Human Development Authority and the Department of Economy and Tourism to promote education and investment opportunities in Dubai. This effort aims to attract international students and institutions to the city.
TECOM Gains Shari’a Compliance
TECOM Group has been certified as Shari’a compliant by the Shariyah Review Bureau (SRB) for the period ending 31 March 2025. This means the company’s financial practices follow Islamic law. SRB will also review TECOM’s documents and financial actions regularly to make sure they remain compliant. This certification is informational only and not an investment recommendation.
Sustainability and ESG Progress
TECOM has also made progress in environmental and social areas. The number of its buildings certified by LEED (Leadership in Energy and Environmental Design) rose to 55 in H1 2025, up by 34% from H1 2024. The company also used solar energy to produce 8 gigawatt hours of clean energy.
Support for Start-Ups and Women
TECOM’s startup incubator called “in5” issued 86 licenses in the first half of the year. These were given in technology, media, design, and science sectors. TECOM also supports gender balance. Women now make up 35.4% of its workforce. During Ramadan and Eid, TECOM ran the third edition of The Good Store, a program in partnership with Dubai Charity Association that helps people donate to those in need.
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