Post by : Badri Ariffin

TECOM Group PJSC (DFM: TECOM), renowned for developing specialized business districts in Dubai, has unveiled its remarkable financial results for the first quarter of 2026. This progress has been largely influenced by robust demand for its commercial and industrial assets.

Robust Financial Outcomes

In Q1 2026, TECOM Group reported a revenue of AED 755 million, representing an 11% year-on-year increase. Growth stemmed from portfolio expansion, elevated occupancy rates, enhanced rental pricing, and contributions from new assets as well as projects completed in 2025.

The Group’s EBITDA increased by 13% to AED 610 million, achieving an impressive margin of 81%, attributed to effective cost management and enhanced operational performance.

Additionally, net profit from ongoing operations rose by 12% to AED 403 million, a reflection of higher EBITDA and stringent financial governance.

Funds from Operations (FFO) experienced a 14% influx to AED 549 million, showcasing solid cash flow capabilities and a stable, diverse client roster.

High Occupancy Rates and Strong Demand

TECOM Group has exhibited strong performance across its portfolio, with an occupancy rate of 98% in both its commercial and industrial assets.

Customer retention remained commendable at 94% within the commercial sector and 99% in the industrial sphere, underscoring long-term relationships and the solid demand for its business areas.

Furthermore, a weighted average lease term (WALT) of 8.8 years demonstrates stability in long-term leasing commitments.

Growth Across Multiple Sectors

• Commercial assets showed notable revenue growth due to high occupancy and newly integrated properties.

• Industrial assets showcased steady progress, supported by strong demand and the expansion of industrial land, with leasing proceeding as anticipated.

Significant Operational Highlights

During Q1 2026, TECOM Group announced several key developments:

• Dubai Media City commemorated its 25th anniversary as a central hub for creative industries.

• Dubai Science Park celebrated 20 years of fostering science and research advancements.

• Dubai Industrial City highlighted its evolving global food and beverage ecosystem at Gulfood 2026.

• Student enrollment at Dubai International Academic City and Dubai Knowledge Park surpassed 38,500, indicating a 15% yearly growth.

• ALAS Emirates Ready Mix is set to develop a new advanced facility in Dubai Industrial City.

• AmSpec Group inaugurated a new Agri & Food laboratory in Dubai Science Park.

• Geneva College of Longevity Science hosted its second global symposium in collaboration with Dubai Science Park.

Message from the CEO

Abdulla Belhoul, CEO of TECOM Group, stated that the impressive results reflect the strength of Dubai’s economy and investor assurance. He emphasized that the company's diversified business model, high occupancy rates, and long-term leasing strategy are vital to sustaining growth.

He further confirmed TECOM Group’s commitment to fostering future-driven industries and enhancing Dubai’s stature as a global business and knowledge epicenter.

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