Dubai’s Tecom delivers Dh1.1b in ‘23 net profit

DH400M DIVIDEND PAYOUT LINED UP FOR SHAREHOLDERS IN APRIL

Dubai economic zones operator Tecom pulled out a solid 10 per cent growth on its topline numbers, hitting Dh2.2 billion for 2023.

The gains were led by high occupancy numbers, averaging 89 per cent across its portfolio that includes Dubai Internet and Media cities, Dubai Design District and Industrial City.

This in turn delivered a net profit of Dh1.1 billion compared to Dh725 million a year ago. Margins touched 76 per cent compared to 2022’s 68 per cent.

In line with its stated dividend policy, Tecom will release a further Dh400 million to shareholders for the secondhalf of 2023, with the payment to be made in April.

The holding company is looking into the possibility of adding to its land bank or building more on available land available as demand for prime

commercial real estate in Dubai keeps heading in its direction.

“We have enhanced our position as the preferred destination for investors and entrepreneurs and talent from around the world,” said Malek Al Malek, Chairman.

High occupancy and more

Averaging 89 per cent occupancy levels played out nicely on the Tecom numbers, but so did the drop in finance costs, from Dh312 million to Dh262 million.

Abdulla Belhoul, CEO, said: “While the majority of our revenue is attributed to retained customers, we saw an almost 15 per cent increase in the number of new customers from 2022.”

Demand for offices and commercial space continues to run high in Dubai.“The lease of industrial lands witnessed strong demand, as the occupancy rate rose to 94 per cent, compared to 81 per cent during 2022,” a Tecom statement said.

The market value of Tecom’s real estate investments increased 7.7 per cent to Dh22.9 billion in 2023, a record growth of 18.2 per cent since the IPO.

“We anticipate the growth momentum to sustain in 2024,” said Belhoul. “With our wellbalanced business model, access to strategically located land bank and prime assets, we are confident in our ability to satisfy demand trends.”

In 2023, we continued to demonstrate the attractiveness of our assets and our ability to acquire new customers.”

Malek Al Malek | Chairman of Tecom Group

We witnessed a demand surge for customers requiring premium office spaces in centrally located districts, such as Dubai Design District.”

Abdulla Belhoul | CEO of Tecom Group