Tecom Group Reports Record Growth in 2024
Tecom Group, a notable player listed on the Dubai Financial Market, which specializes in managing business complexes across critical sectors, has achieved impressive revenues of 2.4 billion dirhams (approximately 653.4 million dollars) for the fiscal year, reflecting an 11% increase year-on-year.
The group announced a 14% rise in net profit, boosting it to 1.2 billion dirhams (about 327 million dollars) for the fiscal year ending December 31, 2024, attributing this success to an effective strategy centered on sustainable growth.
This performance illustrates Tecom Group’s commitment to expanding its portfolio and enhancing operational efficiency, successfully maintaining high occupancy rates and customer retention throughout 2024.
The Board of Directors has proposed a cash dividend distribution of 400 million dirhams (8 fils per share) for the second half of 2024, pending shareholder approval at the upcoming annual general assembly on March 10, 2025, in alignment with the profit distribution policy effective through the first half of 2025.
Furthermore, the Board is considering a 10% increase in anticipated cash dividends for the second half of 2025.
Malik Al-Malik, Chairman of Tecom Group, emphasized that these robust results showcase the resilience of the UAE and Dubai’s economy. He reaffirmed the group’s ongoing efforts to bolster the knowledge economy by attracting top international firms and talent across six strategic sectors.
Al-Malik noted that the group announced strategic investments exceeding 2.7 billion dirhams in 2024, aligning with its sustainable growth objectives and reinforcing its role as a key driver of the business sector. The group remains committed to securing a lucrative future while achieving commendable financial results and managing costs effectively, all while ensuring optimal customer satisfaction.
Abdullah Balhll, CEO of Tecom Group, pointed out that Dubai and the UAE continue to realize robust sustainable growth, particularly in the commercial real estate and industrial sectors, buoyed by significant growth in GDP, excluding oil.
In a recent media session, Al-Balhll highlighted that the customer base has expanded steadily, witnessing an 8% growth in 2024, reaching a total of 11,900 customers. He remarked that global challenges are prompting investors to seek growth opportunities, with the Gulf region and the UAE emerging as prime destinations.
He conveyed that the group’s investment trajectory will persist this year across all sectors of operation, adapting to the growing demand from clients.
The increase in revenues has been attributed to a 5% rise in occupancy rates year-on-year, reaching 94%, along with a notable customer retention rate of 92% and elevated rental rates.
An independent valuation conducted by CBRE on Tecom Group’s investment property portfolio revealed an asset value of 28 billion dirhams as of December 31, 2024, marking an 11% rise from 2023 figures and a 22% annual increase, which includes strategic acquisitions made throughout 2024.
In the last quarter of 2024, the group’s revenues saw an 11% year-on-year increase, amounting to 643 million dirhams, with profits growing by 9% before accounting for interest, taxes, depreciation, and amortization, resulting in an impressive 458 million dirhams and a profit margin of 71%.
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