Tecom Group’s Board of Directors has approved a Dh1.6 billion investment to acquire 138 land plots covering 33 million square feet, in a move aimed at strengthening Dubai Industrial City’s position as a leading hub for manufacturing and logistics.
The land plots, acquired from Dubai Holding Asset Management, will increase Tecom Group’s total land portfolio to more than 209 million square feet. The expansion comes as Dubai Industrial City reports a 99 percent occupancy rate, reflecting robust demand from both new and existing customers. The acquisition is expected to bolster the Group’s ability to meet rising demand from industrial clients across diverse sectors.
Abdulla Belhoul, Chief Executive Officer of Tecom Group PJSC, said the acquisition underlines the company’s contribution to the UAE’s industrial growth. “This strategic acquisition demonstrates Tecom Group’s role as a major contributor in the industrial sector in both the UAE and Dubai,” Belhoul said. “Our nation is cementing its role as a global hub for foreign direct investment, supported by long-term strategies such as the Comprehensive Economic Partnership Agreement framework. This move reaffirms Dubai Industrial City’s significant role in advancing the country’s manufacturing sector.”
The acquisition builds on Tecom Group’s ongoing growth strategy, which has seen total investments across its commercial and industrial portfolio reach Dh4.3 billion since 2024. Last year, the Group purchased 13.9 million square feet of land in Dubai Industrial City, which has since been fully leased to leading companies in key sectors including food and beverage, base metals, and transport.
Tecom Group will finance the latest acquisition through existing resources under a flexible repayment schedule. Revenue recognition from the additional land bank is expected to begin within 12 to 24 months. Despite the sizeable investment, the Group has reaffirmed that it will maintain a strong liquidity and leverage position.
The company also stressed adherence to all regulatory and governance requirements for the acquisition, noting that the land valuation was conducted by independent parties accredited by relevant authorities.
This latest expansion follows Tecom Group’s strong financial results in the first half of 2025, during which it reported a 22 percent year-on-year increase in net profit to Dh737 million and a 21 percent rise in revenue to Dh1.4 billion. Rising rental rates and near-full occupancy levels have helped strengthen the Group’s appeal to international clients.
Established in 2004, Dubai Industrial City has grown into a major industrial and logistics hub, hosting more than 350 operational factories. Its master-planned community offers industrial land, storage, and logistics facilities, with strategic access to Jebel Ali Port, Al Maktoum International Airport, and the upcoming Etihad Rail freight terminal—further cementing its role in global supply chains.
