Tecom Group has announced its financial results for the fiscal year ending December 31, 2025. The group achieved record revenues amounting to AED 2.9 billion, reflecting a 19% increase year-on-year, alongside a 20% growth in recurring net profit, reaching AED 1.5 billion.
Malek Al Malek, Chairman of Tecom Group, stated, “Tecom Group has successfully continued its trajectory of robust growth and outstanding performance, a testament to the ongoing economic momentum in the UAE and Dubai.
The group concluded 2025 with record financial and operational results, attaining a recurring net profit of AED 1.5 billion, a rise of 20% year-on-year, along with near-full occupancy rates across most of its business clusters.
He further added, “In 2025, we strengthened Tecom Group’s portfolio thanks to our expansion strategy and strong financial positioning, delivering optimal returns to our shareholders.
In light of our solid financial results for 2025, the Board of Directors proposes a 10% increase in cash dividends for the second half of 2025, totaling AED 440 million, along with an update to the dividend policy for 2026, anticipating a total cash dividend of AED 880 million, subject to shareholder approval.”
Abdullah Belhoul, CEO of Tecom Group, remarked, “Our strong performance in 2025 underscores the significant role that our specialized business clusters play in driving economic growth across six strategic sectors, enhancing the UAE and Dubai’s ability to attract more investors and talent from around the globe.”
He continued, “Our exceptional financial results for 2025 reflect the efficiency and resilience of our business model and are a result of the effective execution of our group’s sustainable growth and expansion strategy, which includes continued investment in asset portfolio expansion through project development and strategic acquisitions, along with enhancing operational efficiency and maintaining a balanced approach to capital management.
The group recorded revenue of AED 2.9 billion, with earnings before interest, taxes, depreciation, and amortization (EBITDA) reaching AED 2.2 billion.”
The EBITDA grew by 20% year-on-year, reaching AED 2.2 billion, driven by strong revenue growth and effective cost management, resulting in a profit margin increase to 78%, up one percentage point from the fiscal year 2024.
For the fiscal year 2025, Tecom Group reported recurring net profits of AED 1.5 billion, a 20% increase year-on-year, attributed to effective finance and capital management, reflecting the success of the group’s strategy in delivering sustainable value to shareholders.
Due to the strong sector performance, asset valuation provisions (a non-recurring item) were adjusted to AED 608 million (after tax). Consequently, the net profit recorded by the group for the year amounted to AED 2.1 billion.
Occupancy Rates
The occupancy rates continued to trend upwards, with an average occupancy of 97% for commercial and industrial assets in 2025, marking a 3% increase year-on-year. The commercial asset portfolio achieved an occupancy rate of 95%, up 5% year-on-year, while the industrial assets reached 98% occupancy.
Moreover, the occupancy rate for land designated for industrial leasing increased to 97%. Operational cash flows reached AED 2 billion in 2025, representing a 19% year-on-year increase.
Property Portfolio
CBRE conducted an assessment of the fair value of the group’s investment property portfolio, determining it to be worth AED 34.5 billion as of December 31, 2025, reflecting a 23% year-on-year increase compared to the 2024 fair value, and an 18% increase on a like-for-like basis.
Fourth Quarter
In the fourth quarter of 2025, the group witnessed a 16% year-on-year revenue growth, reaching AED 745 million. EBITDA in the fourth quarter saw a 22% year-on-year increase, climbing to AED 559 million, with the profit margin rising to 75%, a 4 percentage point increase year-on-year.
The group recorded a notable 29% year-on-year growth in recurring net profit for the fourth quarter, totaling AED 367 million, while net profits amounted to AED 975 million after adjusting for asset valuation provisions (a non-recurring item) of AED 608 million.
Strong Demand
Strong demand for premium commercial and industrial assets in Dubai is expected to continue in the near future, with forecasts indicating substantial growth in the office market in 2026, anticipating a 15% increase in both capital returns and average rental values.
Dividend Proposals
The Board of Directors of Tecom Group has proposed a cash dividend of AED 440 million for the second half of 2025, pending shareholder approval in the upcoming Annual General Meeting, which marks a 10% increase compared to cash dividends for the first half of 2025.
The dividends are expected to be distributed in March 2026, pending shareholder approval. Alongside the announcement of the fiscal year 2025 results, Tecom Group will also update its dividend distribution policy for fiscal year 2026.
Under this policy, the company anticipates distributing a total cash dividend of AED 880 million for 2026, to be distributed in two equal tranches of AED 440 million each. These dividends are expected to be distributed in August 2026 and March 2027, subject to shareholder approval at the Annual General Meetings.
34.5
Billion AED – Value of the Investment Property Portfolio
Proposal for a cash dividend of 440 million AED for the second half of 2025