#Dubai's business park operator posts 15% rise in Q1 2024 profit

Dubai's business park operator posts 15% rise in Q1 2024 profit

Dubai business park operator TECOM Group posted a 15% year-on year (YoY) rise in Q1 2024 net profit to 293 million dirhams ($79.8 million) due to demand from new and existing customers.

Revenue increased 10% YoY to AED 564 million as the portfolio occupancy rate across commercial and industrial leasing portfolio reached an all-time high of 91%, the company said in a statement on Friday.

Number of customers surpassed 11,000 thanks to strong customer retention across the business and addition of new customers, it added.

Occupancy rates across the portfolio climbed for three consecutive quarters, and has reached a company all-time high of 91%, with some business districts near full capacity, said Abdulla Belhoul, Chief Executive Officer of TECOM Group.

He expects the demand-induced growth momentum to be sustained for the rest of the year.

"Our confidence is underpinned by a positive macroeconomic outlook enabled by pro-growth government initiatives, including Dubai’s D33 and the UAE’s Operation 300 billion."

The TECOM Group operates business parks and districts across the emirate, including Dubai Internet City, Dubai Outsource City and Dubai Media City.