TECOM Group reports 9% net profit growth in H1 2026 to AED805 million

TECOM Group PJSC announced its financial results for the second quarter (Q2) and first half of the year (H1) ended 30 June 2026. The Group reported a recurring net profit growth of 9 percent year-on-year (YoY) to AED805 million during the first half of this year.

The Group’s revenue in H1 2026 increased 11 percent YoY to exceed AED1.5 billion, supported by an increase in occupancy rates to 97 percent, improved rental rates, and contributions from portfolio expansion:

TECOM Group's Board of Directors approved an interim cash dividend of AED440 million for H1 2026, demonstrating the Group's commitment to generating sustainable returns for its shareholders.

In H1, EBITDA increased 10 percent YoY to surpass AED1.2 billion, delivering a 79 percent margin, underscoring the Group’s resilient business model and cost discipline. Funds from Operations (FFO) increased 12 percent YoY to AED1.1 billion, attributable to the Group’s diversified revenue streams and operational efficiency.

Malek Al Malek, Chairman of TECOM Group, said, “TECOM Group’s results for H1 2026 reflect the strength of its business model and its ability to capitalise on opportunities in the vital economic sectors served by the Group’s specialised business districts.”

Abdulla Belhoul, Chief Executive Officer of TECOM Group, said, “The increasing demand for the Group’s assets, coupled with high customer retention rates, underscores our business ecosystems as preferred destinations for global and regional companies. We remain committed to investing in the development and enhancement of TECOM Group’s 10 business districts, further solidifying the Group’s role as a strategic business enabler of Dubai.”

Commercial portfolio reflected strong revenue growth with an increase of 11 percent YoY to AED783 million, attributable to sustained demand for Grade-A offices and occupancy and retention rates of 96 percent and 94 percent, respectively.

Industrial asset revenue increased 15 percent YoY to AED239 million while maintaining occupancy and customer retention rates of 98 percent and 99 percent, respectively, underscoring robust demand from manufacturing and logistics customers.

The Land Lease portfolio delivered a 22 percent YoY increase in revenue to AED361 million, driven by continued strong demand and the lease of newly acquired land in 2025.

During the period, Hisense inaugurated its Middle East and Africa regional headquarters in Dubai Internet City, while MedLab Training Institute opened a new facility at Dubai Science Park to meet growing demand for practical clinical training.

AJ Al Asmawi Group signed a Musataha agreement with Dubai Industrial City to expand its operations through a 330,000-square-foot development that will include one of the UAE's first oil rig manufacturing and refurbishment facilities.

Dubai Design District (d3) also hosted the Autumn/Winter 2026/27 edition of Dubai Fashion Week.

For the second quarter, revenue increased 11 percent YoY to AED786 million, while EBITDA rose 8 percent to AED613 million, with a margin of 78 percent. Recurring net profit grew 7 percent YoY to AED401 million, supported by EBITDA growth and disciplined cost management.