TLDR:
• Net profit rises, outpacing expectations
• Strong revenue growth drives success
• High demand boosts occupancy rates
DUBAI (The Thursday Times) — TECOM Group has reported a remarkable financial performance for the first nine months of 2024, showcasing significant year-on-year (YoY) growth. The Group, which operates a wide array of specialised business districts and vibrant communities in Dubai, revealed a substantial 23% increase in net profit, amounting to AED 943 million. This achievement highlights TECOM Group’s strategic success, as it navigates the competitive real estate and business sector environment of Dubai, leveraging both existing and new customer demand.
Revenue for the nine-month period surged by 10% YoY, surpassing AED 1.7 billion, a result driven by impressive occupancy rates across the Group’s diversified portfolio of premium commercial, industrial, and land lease assets. This comprehensive portfolio has enabled TECOM to cater effectively to the needs of businesses across six essential sectors, thereby fostering an environment that attracts and retains industry leaders. The robust financial results are also a testament to Dubai’s pro-business climate, which has played a critical role in supporting growth and investment across TECOM’s business landscape.
Revenue surge reflects strategic growth
The third-quarter performance further solidified TECOM Group’s upward trajectory. Quarterly revenues increased by 12% YoY to AED 611 million, while net profit for the quarter rose by 20% YoY, reaching AED 340 million. The strength of TECOM’s diversified assets, coupled with the sustained demand from high-profile tenants, was crucial in achieving these results. The Group’s ability to maintain high occupancy rates across its various business districts has been fundamental in securing long-term financial stability and profitability.
CEO’s emphasis on sustainability
Abdulla Belhoul, Chief Executive Officer of TECOM Group PJSC, highlighted the significance of these financial achievements in the context of Dubai’s ambitious economic vision. He emphasised the Group’s commitment to sustainable and long-term growth, driven by strategic asset management and a proactive approach to cost efficiency. TECOM’s focus on sustainability is not just about financial health but also about contributing to Dubai’s broader goals of economic diversification and technological advancement.
TECOM’s financial strategy has included prudent measures to enhance shareholder value, with an emphasis on balancing revenue growth and profitability. Belhoul’s statement underscores a strategic vision that aligns with Dubai’s overarching economic goals, as the emirate continues to position itself as a global business and innovation hub. The emphasis on sustainability, both in terms of environmental practices and financial planning, has bolstered investor confidence and reinforced TECOM’s reputation as a resilient and forward-thinking enterprise.
Dubai’s pro-business framework
TECOM’s success story is closely tied to the pro-business policies of Dubai, which have provided a fertile ground for enterprises to thrive. The Group has strategically benefited from these policies, using them to attract major firms and foster a thriving business ecosystem. The six critical sectors that TECOM caters to include technology, media, education, design, science, and manufacturing. This sectoral diversity has allowed the Group to remain resilient, even as global economic trends fluctuate.
Occupancy rates have remained a key performance indicator, with demand consistently high from both local and international businesses. The increase in revenue and net profit highlights the impact of Dubai’s investment-friendly climate and TECOM’s strategic focus on building sustainable and profitable business models. Moving forward, TECOM’s financial health and operational success will be crucial in maintaining Dubai’s reputation as a leading global business hub.
