TECOM Group Sees Q1 2026 Profit Surge by 12% on Robust UAE Demand

Post by : Bianca Suleiman

TECOM Group PJSC (DFM: TECOM), known for developing specialized business districts in Dubai, has revealed impressive financial outcomes for the first quarter of 2026. The numbers reflect a significant rise in both revenue and profit, attributed to a robust demand across its commercial and industrial sectors.

Strong Financial Outcomes

In the first quarter, TECOM Group reported a revenue of AED 755 million, an 11% year-on-year increase. This growth stemmed from portfolio expansion, elevated occupancy rates, enhanced rental prices, and contributions from newly integrated assets and projects completed in 2025.

The Group's EBITDA experienced a 13% rise to AED 610 million, showcasing a compelling margin of 81%, bolstered by effective cost control and improvements in operational efficiency.

Net profit from ongoing operations increased by 12% to AED 403 million, with highlights including heightened EBITDA and disciplined financial management.

Funds from Operations (FFO) also surged, climbing 14% to AED 549 million, indicative of solid cash flow generation and a stable, diverse customer base.

High Occupancy and Strong Demand

TECOM's portfolio continues to demonstrate exceptional performance with a 98% occupancy rate across both commercial and industrial sectors.

Customer retention remains exemplary, at 94% in the commercial sector and 99% in industrial, underscoring strong long-term relationships and significant demand for its business districts.

Additionally, the company's weighted average lease term (WALT) stands at 8.8 years, indicating stable, long-term leasing commitments.

Business and Sector Growth

• Commercial assets exhibited strong revenue increases driven by high occupancy and contributions from new properties.

• Industrial properties sustained steady growth, spurred by strong demand and the expansion of industrial land, with leasing proceeding as expected.

Key Operational Highlights

In Q1 2026, TECOM Group showcased several noteworthy developments:

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

• Dubai Science Park celebrated 20 years of advancement in science and research.

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

• Enrollment in Dubai International Academic City and Dubai Knowledge Park surpassed 38,500, marking a 15% increase year-on-year.

• ALAS Emirates Ready Mix announced plans for a new, advanced facility in Dubai Industrial City.

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

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

CEO's Comment

Abdulla Belhoul, CEO of TECOM Group, stated that these positive results highlight the strength of Dubai's economy and reflect investor confidence. He emphasized that the company’s diversified business model, high occupancy rates, and long-term lease strategies are instrumental in ensuring sustainable growth.

Belhoul further accentuated TECOM Group's commitment to nurturing forward-thinking industries and enhancing Dubai’s standing as a global business and knowledge hub.

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