TECOM Group, the UAE’s pioneer business park operator, announces the major additional investment of AED 340 million (USD 93 million) in the wired city’s leading Grade A adaptive, sustainable office spaces at Dubai Internet City. This is part of the latest phase of the Innovation Hub project, dubbed as Phase 3, and with a timeline for completion set by mid-next year.
This was in line with TECOM Group’s strategic approach of diversifying and expanding its commercial real estate interests in response to the growing demand for premium office facilities in the Emirate.
Expansion of TECOM Group’s Portfolio
With the launch of Innovation Hub’s third phase, TECOM Group has hit yet another milestone in its portfolio expansion journey. This launch coincides with those important milestones of TECOM Group being placed on the lists of important players in the real estate and business ecosystems of Dubai. This further consolidates the group’s total investments in new and existing commercial and industrial assets at AED 2 billion.
This amount includes its earlier investments and the new strategic acquisitions. The new allocation of AED 340 million is part of a bigger strategic plan of AED 1.7 billion announced in May — a move that affirms TECOM Group’s commitment to sustainable long-term growth and expansion in the UAE.
Innovation Hub Phase 3 Details
Leading through Innovation, Innovation Hub believes in the work destination of the future, equipped with the trappings of a modern amenity, perfect for Technology, Media, and other Innovation-oriented companies. In a bid to respond to this growing demand, Grade A spaces in Phase 3 shall be delivered to tenants who have a constant leaning towards this category of space in view of their modern construction, superior infrastructure offered, and location within Dubai’s urban business centre. Business from across the spectrum, from small startups to world-renowned businesses, will therefore flock to the development, further enhancing Dubai’s reputation as an international innovation and business centre.
The completion of Phase 3 will largely add to Dubai Internet City’s capacity—housing more businesses—added effectively to the overall environment of collaboration and innovation between the companies situated there.
Strategic Land Acquisition
The investment of the TECOM Group is not only confined to the Innovation Hub but also extends to growing its land portfolio. Such gains in land put the TECOM Group in new additional gains of 179 million managed square feet of land leasing. This is a very strategic operation that allows it not only to widen its offer in real estate, but also puts it in an even stronger position to meet future demand for commercial and industrial space.
It matched with the long-term vision for the TECOM Group, through broader land holdings, of creating integrated business environments that foster innovation, collaboration, and growth. Little wonder, therefore, that the new acquisitions are generally expected to play a critical role in the future developments and projects of the group, in serving the changing needs of the Dubai business community.
TECOM Group’s Growth Strategy
The investments and land purchases of TECOM Group are part of a larger growth strategy to reinforce its standing as a leading operator of Dubai’s business parks. The strategic plan laid out in May spells out group goals for increasing the stock of its real estate portfolio, redefining the skyline of Dubai, and creating sustainable and innovative business environments.
Grade A offices are part of the interest area for the group. TECOM Group’s newest infrastructure developments, such as the Innovation Hub, are targeted at fulfilling the consistently increasing demand for high-quality, grade A spaces fueled by companies entering this market. This matches the increased market requirement in Dubai for prime, good-quality, well-located commercial real estate.
This AED 340 million invested by TECOM Group in the Innovation Hub Phase 3 underscores the commitment of the group toward supporting Dubai’s growth as a global business hub. Other ways in which TECOM Group will ensure that it remains at the very forefront of the city’s commercial real estate sector are by maintaining a well-diversified portfolio and emphasis on Grade A office space development.
These strategic land acquisitions further uplift the group’s capabilities to cater to future demands and set the pathway for the TECOM Group to continue its strong performance in the years ahead. Projected to be completed by the middle of 2027, it would bring in a large diversity of businesses to Dubai Internet City, which would further enhance the repute of this place as a prime destination for innovation and business excellence.
