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Tecom Group H1 net profit rises 9% to Dh805 million
Conglomerate's revenue climbs 11% to more than Dh1.5 billion as occupancy reaches 97% and demand remains strong across commercial, industrial and land assets
- PUBLISHED: Thu 30 Jul 2026, 4:34 PM
Tecom Group reported a 9 per cent year-on-year increase in recurring net profit to Dh805 million during the first half of 2026, supported by higher occupancy, improved rental rates and continued portfolio expansion.
Revenue rose 11 per cent to more than Dh1.5 billion, while earnings before interest, taxes, depreciation and amortisation increased 10 per cent to over Dh1.2 billion. The EBITDA margin stood at 79 per cent.
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Funds from operations climbed 12 per cent to Dh1.1 billion, reflecting diversified revenue streams and continued operational efficiency.
The group, which owns and operates 10 specialised business districts in Dubai, said occupancy across its commercial and industrial portfolios reached 97 per cent during the period.
Commercial and industrial demand stays strong
Revenue from the commercial portfolio increased 11 per cent to Dh783 million, supported by sustained demand for Grade A offices. Occupancy in the segment stood at 96 per cent, while the customer retention rate reached 94 per cent.
Industrial asset revenue rose 15 per cent to Dh239 million, with occupancy and retention rates reaching 98 per cent and 99 per cent, respectively, as manufacturing and logistics companies continued to seek space across the group’s districts.
Revenue from land leases increased 22 per cent to Dh361 million, driven by continued demand and the leasing of land acquired in 2025.
Malek Al Malek, Chairman of Tecom Group, said the results reflected the strength of the group’s business model and its ability to benefit from growth across key economic sectors.
He said the company continued to balance expansion with prudent financial management while delivering sustainable returns to shareholders.
Dh440 million interim dividend
Tecom Group’s board approved an interim cash dividend of Dh440 million for the first half, which is expected to be paid in August.
The company said the distribution was supported by its financial performance and the Dh1.1 billion generated in funds from operations.
Abdulla Belhoul, Chief Executive Officer of TECOM Group, said high occupancy and retention rates reflected continued demand for the group’s business ecosystems from regional and international companies.
He added that the company would continue investing in the expansion and enhancement of its 10 business districts.
During the second quarter, revenue increased 11 per cent to Dh786 million, while EBITDA rose 8 per cent to Dh613 million. Recurring net profit grew 7 per cent to Dh401 million.
Portfolio expansion continues
Operational activity during the first half included the opening of Hisense’s Middle East and Africa headquarters at Dubai Internet City and a new MedLab Training Institute facility at Dubai Science Park.
AJ Al Asmawi Group also signed a Musataha agreement with Dubai Industrial City for a 330,000-square-foot expansion that will include one of the UAE’s first facilities for manufacturing and refurbishing oil rigs.
Tecom Group said 68 per cent of its commercial portfolio by gross leasable area had achieved LEED certification. It secured 22 new certifications during the first half, bringing the total number of LEED-certified buildings to 81.
The group’s assets generated 9.12 gigawatt-hours of electricity from renewable sources during the period, representing 10.3 per cent of total power consumption.
