Strong Financial Performance Driven by Dubai’s Economic Growth
TECOM Group PJSC has reported that total revenue for the financial year ending December 31, 2024 (FY 2024) accounted for AED 2.4 billion, 11% higher than last year. This made room for 14% net profit growth from AED 1.04 billion to AED 1.2 billion.
PC: Dubai 10X
The financial victories assure that the strategic focus of TECOM Group to build upon its Dubai core equities for portfolio expansion and more efficient operations, strengthened by its high occupancy and retention levels throughout 2024, have fortified its position in the commercial and industrial real estate markets of Dubai.
Dividends and Future Growth Plans
The Board of Directors has resolved to propose a second-half dividend payment of AED 400 million (8 fils per share). The proposal will be subject to shareholder approval at the Annual General Meeting on March 10, in accordance with the Group’s dividend policy running through the first half of 2025.
Further, the Board of Directors had also considered an interim cash dividend for the second half of 2025, intending a 10% increase on that value. This effort symbolizes confidence in the Group’s overall financial position and commitment to maintaining long-term shareholder value.
Comments from Leadership
Malek Al Malek, Chairman, TECOM Group, underscored the firm’s commitment to supporting Dubai’s knowledge economy, particularly against an international business backdrop and a supply of skilled talent in six crucial sectors.
“TECOM Group’s solid performance in 2024 reaffirmed our commitment to leverage Dubai’s robust economic fundamentals,” Al Malek noted. “The AED 2.7 billion of investments announced through 2024 give further impetus to our portfolio expansion plans, ensuring sustained development and consolidating our stakeholder role in Dubai’s business environment.”
Abdulla Belhoul, CEO of the TECOM Group, added that the acceleration of Dubai’s economic growth outside the oil sector has bolstered the Group’s performance.
“Dubai and the UAE continue to experience sustained growth across commercial real estate and industrial sectors,” Belhoul stated. “Driven by robust asset performance, strong customer demand, and prudent cost management, TECOM Group achieved substantial increases in revenue, EBITDA, and property valuation.”
He also noted that TECOM Group’s share price saw a 15% YoY increase in 2024, reflecting strong shareholder returns and the long-term value of the company’s business model.
Key Financial Highlights
– Revenue Growth: Increased 11% YoY to AED2.4 billion.
– Occupancy Rate: Rose 5% YoY to 94%, with an impressive retention rate of 92%.
– Investment Properties: Valued at AED 28 billion as of December 31, 2024, an 11% like-for-like increase and 22% YoY growth, including new acquisitions.
– Q4 2024 Performance: Revenue increased by 11% YoY to AED 643 million. EBITDA grew by 9% YoY to AED 458 million, maintaining a strong 71% EBITDA margin.
TECOM Group’s continued investments in Dubai’s commercial and industrial sectors position it for sustained growth. The company remains focused on enhancing its portfolio while ensuring long-term value for shareholders and stakeholders alike.
