TECOM Group Invests Dhs1.6bn to Expand Dubai Industrial City Portfolio

TECOM Group has announced a Dhs1.6 billion investment to acquire 138 land plots spanning 33 million square feet from Dubai Holding Asset Management, a move aimed at expanding its industrial portfolio amid rising demand for manufacturing and logistics facilities in the UAE.

The acquisition boosts TECOM Group’s total land holdings to more than 209 million square feet and significantly strengthens the position of Dubai Industrial City, one of the region’s largest industrial hubs. The district, which currently operates at 99 per cent occupancy, has seen strong growth as the UAE pushes ahead with national industrial initiatives including Operation 300bn, Make it in the Emirates, and the Dubai Economic Agenda ‘D33’.

Abdulla Belhoul, chief executive officer of TECOM Group, said the investment underlines Dubai’s increasing role as a global manufacturing and investment hub. “This strategic acquisition demonstrates TECOM Group’s role as a major contributor to the industrial sector in both the UAE and Dubai,” he noted. “Our nation is cementing its role as a global hub for foreign direct investment, and this move reaffirms Dubai Industrial City’s role in advancing the country’s manufacturing sector while meeting growing demand from both new and existing customers.”

Belhoul added that the Group’s long-term strategy, supported by strong liquidity, is focused on building world-class industrial assets and creating greater value for shareholders.

The deal marks the latest step in TECOM Group’s expansion strategy, bringing its total investment in its commercial and industrial portfolio to Dhs4.3 billion since 2024. Last year, the Group acquired 13.9 million square feet of land in Dubai Industrial City, which has since been fully leased across six sectors, including food and beverage, base metals, and transport.

The new acquisition, executed through subsidiary Dubai Industrial City, will be financed using existing resources under a flexible repayment plan. Revenue generation from the additional plots is expected to start within the next 12 to 24 months. TECOM Group confirmed that the transaction followed international best practices, with valuations conducted by accredited, independent parties.

The announcement comes on the back of strong half-year results for 2025. TECOM Group reported a 22 per cent rise in net profit to Dhs737 million, while revenue climbed 21 per cent year-on-year to Dhs1.4 billion, supported by high occupancy rates and growing rental yields.

Since its establishment in 2004, Dubai Industrial City has become home to more than 350 operational factories and serves regional and international clients with industrial land, logistics, and storage facilities. Its strategic location near Jebel Ali Port, Al Maktoum International Airport, and the Etihad Rail freight terminal has positioned it as a vital link in global supply chains.