Dubai: TECOM Group has reported an exceptional financial performance for the year 2023, achieving a record revenue of AED2.2 billion, marking a 10% year-on-year increase. The company’s net profit surged by 49% to AED1.1 billion, indicating robust growth in Dubai’s economy and the success of its diversified business strategies.
The outstanding results were attributed to high demand from both new and existing customers across its six sectors. These results are a testament to Dubai’s resilient economy, bolstered by pro-growth government initiatives and high consumer and business confidence.
Malek Al Malek, Chairman of TECOM Group, highlighted 2023 as a milestone year for the UAE and Dubai’s economy, with the commercial real estate sector outshining global markets. He emphasized TECOM Group’s pivotal role in Dubai’s burgeoning knowledge and innovation-driven economy.
Furthermore, the Board of Directors recommended a significant AED400 million dividend for shareholders for the latter half of 2023, reflecting the group’s strong performance and optimism for continued growth in 2024.
Abdulla Belhoul, CEO of TECOM Group, pointed out the surge in occupancy rates to 89% across their portfolio, fueled by demand in various sectors, notably the industrial sector and premium office spaces. He expressed satisfaction with the 15% increase in new customers since 2022.
The report also highlighted a significant rise in the occupancy rate of industrial lands to 94% in 2023, up from 81% in 2022. EBITDA grew by 23% to AED1.7 billion, with an expanded margin of 76%, up from 68% in the previous year. This increase was credited to improved revenue quality and favorable macroeconomic conditions.
TECOM Group’s net profit reached an all-time high due to broad-based growth across its business sectors and reductions in operational and financial costs. The Group’s funds from operations stood at AED1.4 billion, a 21% increase from the previous year, driven by enhanced collections and performance of income-generating assets.