TECOM Group approves Dhs1.6bn land acquisition to expand Dubai Industrial City

TECOM Group has approved an Dhs1.6bn investment to acquire 138 land plots spanning 33 million sq.ft. from Dubai Holding Asset Management, strengthening its industrial portfolio in response to strong customer demand.

The acquisition will expand TECOM Group’s total land holdings to over 209 million sq.ft. and further enhance the appeal of Dubai Industrial City, one of the region’s largest manufacturing and logistics hubs. The district is currently operating at 99 per cent occupancy, including land plots acquired last year, as the UAE’s manufacturing sector continues to grow under national strategies such as Operation 300bn, Make it in the Emirates, and the Dubai Economic Agenda ‘D33’.

“This strategic acquisition demonstrates TECOM Group’s role as a major contributor in the industrial sector in both the UAE and Dubai,” said Abdulla Belhoul, chief executive officer of TECOM Group. “Led by robust macroeconomic fundamentals and long-term strategies such as the Comprehensive Economic Partnership Agreement (CEPA) framework, our nation is cementing its role as a global hub for foreign direct investment. This strategic acquisition reaffirms Dubai Industrial City’s significant role in advancing the country’s manufacturing sector and serving growing demand from existing and new customers.”

He added: “With a future-focused strategy underpinned by our healthy liquidity, we are leveraging favourable market dynamics and actively investing towards growing our world-class portfolio of industrial assets with the aim of unlocking greater long-term value for our shareholders.”

The investment builds on TECOM Group’s strategic expansion, bringing its total investments across its Commercial and Industrial portfolio to Dhs4.3bn since 2024. Last year, the Group acquired 13.9 million sq.ft. of land in Dubai Industrial City, which has since been fully leased to customers across six key sectors including food and beverage, base metals, and transport.

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The latest acquisition, executed through subsidiary Dubai Industrial City, will be financed through existing resources under a flexible repayment plan. Revenue recognition from the new land plots is expected to begin within 12 to 24 months, while the Group maintains a healthy leverage and liquidity position.

The transaction followed international best practices and regulatory requirements, including valuations conducted by independent, accredited parties.

The announcement comes after TECOM Group reported strong H1 2025 results, with net profit rising 22 per cent year-on-year to Dhs737m and revenue up 21 per cent to Dhs1.4bn, supported by high occupancy rates and increasing rental yields.

Established in 2004, Dubai Industrial City is home to more than 350 operational factories and serves regional and global customers with industrial land, storage, and logistics spaces. Its strategic location near Jebel Ali Port, Al Maktoum International Airport, and the Etihad Rail freight terminal underpins its role as a vital link in global supply chains.