Tecom shares rise more than 4% after 2025 revenue surge

• Revenues were up by 19% last year
• Cash dividend of AED880m expected
• Supported by demand for office space

Shares of Tecom Group rose more than 4 percent on the Dubai Financial Market on Tuesday after the company reported its 2025 revenues surged by nearly a fifth, driven by portfolio expansion and higher occupancy rates.

The shares closed at AED3.92 ($1.07) and are up 10 percent so far this year. A total of 916,227 shares worth AED3.6 million changed hands. Market capitalisation reached AED19.6 billion

Tecom Group is a developer and operator of business parks and free zones in Dubai. 

The board also proposed a dividend payout of AED440 million for the second half of 2025, a 10 percent increase compared to the first half, the company said in a statement.

The expected aggregate payout is AED880 million, subject to shareholder approval. 

The total cash dividend for 2026 is expected to remain at AED880 million, with payments in August 2026 and March 2027, subject to regulatory approvals.

Revenues for the last year increased to AED2.9 billion, compared to AED2.4 billion a year ago.

Occupancy rates across the company’s real estate portfolio hit 97 percent in the commercial and industrial assets, reflecting high demand for high-quality assets and customer retention across its portfolio.

Net profit rose to AED2.1 billion in 2025 from AED1.2 billion a year ago after recording a non-cash impairment reversal of AED608 million.

Strong demand for office space saw average rental rates reach AED 225 per square foot during the fourth quarter of 2025, up by about a third year on year, according to a report this week by real estate agency Savills.

“Dubai continues to demonstrate strong fundamentals, with occupiers becoming more strategic in how they approach space. While demand remains robust for Grade A offices, we’re seeing a clear shift towards smaller, more flexible layouts, alongside increased demand for flexibility, resilience and future-proofed workplace strategies,” said Toby Hall, head of commercial agency at Savills Middle East.

Tecom invested more than AED2.5 billion in acquisitions and project developments in 2025 to fuel its long-term growth.

• Tecom buys university campus in Dubai for $34m
• Tecom expands Internet City as Dubai office space demand rises
• Tecom earnings up on higher occupancy and rental rates

In August the group invested AED1.6 billion to acquire 138 industrial land plots, totalling 33 million square feet, in Dubai Industrial City. It launched the fourth phase of its Innovation Hub project in Dubai Internet City in December to meet the growing demand for premium office spaces.

Dubai Holding Asset Management, owned by the ruler of Dubai, holds 86.5 percent of the company, while the remaining 13.5 percent is listed on the DFM.

Tecom operates 10 business districts in the emirate, including Dubai Media City and Dubai Internet City.