Dubai-based Tecom Group intends to pour 1.6 billion UAE dirhams into expanding its business ventures within Dubai Industrial City.

Tecom Group Strengthens UAE's Manufacturing Sector with Dh1.6 Billion Acquisition

In a significant move to bolster the UAE's and Dubai's manufacturing sector, Tecom Group has announced a strategic acquisition of 138 land plots spanning 33 million square feet. The acquisition, worth Dh1.6 billion, was approved by the Group's Board of Directors and financed through its existing resources.

This move comes as part of the country's broader economic agenda, with initiatives such as Operation 300bn, Make it in the Emirates, and Dubai Economic Agenda 'D33' driving the growth in the sector.

The newly acquired land has been fully leased out to leading customers across six vital sectors served by Dubai Industrial City, including food and beverage (F&B), base metals, and transport. This expansion will further solidify Dubai Industrial City's position as the region's leading manufacturing and logistics hub, with over 350 operational factories based at the district.

The acquisition will also bolster Tecom Group's land portfolio, exceeding 209 million square feet. Following the completion of the new acquisition, Tecom Group will maintain a healthy leverage and liquidity position.

The Group's strong H1 2025 financial performance includes a 22 per cent year-on-year (YoY) growth in net profit to Dh737 million and a 21 per cent increase in revenue YoY to Dh1.4 billion. The 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.

Established in 2004, Tecom Group, known as Dubai Industrial City, is intelligently designed with industrial land, storage, and logistics spaces. It is strategically located near Jebel Ali Port, Al Maktouum International Airport, and an Etihad Rail freight terminal, making it an ideal hub for manufacturing and logistics companies.

The acquisition is expected to strengthen Dubai Industrial City's appeal to these companies, contributing to the continued growth and development of the UAE's manufacturing sector. Dubai Industrial City, part of Tecom Group, is currently operating at an occupancy level of 99 per cent, reflecting the strong demand for its offerings.

Tecom Group's subsidiary, Dubai Industrial City LLC, has executed a strategic expansion, acquiring 13.9 million square feet of land in Dubai Industrial City. This addition marks a significant milestone in the Group's growth and its commitment to supporting the UAE's economic diversification efforts. Dubai Industrial City LLC has also added a Dh1.6 billion facility to its real estate portfolio, including companies from sectors such as manufacturing, logistics, and light industry within the industrial zone.

Tecom Group has adhered to all relevant regulatory and governance requirements related to the acquisition, ensuring a smooth and transparent process. The Group will start to recognise revenue from the additional land bank within the next 12-24 months.

This acquisition underscores Tecom Group's commitment to driving growth and innovation in the UAE's manufacturing and logistics sectors. As the Group continues to expand and evolve, it remains dedicated to supporting the country's economic ambitions and serving the needs of its customers.

Dubai-based Tecom Group intends to pour 1.6 billion UAE dirhams into expanding its business ventures within Dubai Industrial City.