- Innovation Hub Phase 1 is nearing full capacity, housing global technology players Google, Hewlett-Packard, Gartner and China Telecom
- This marks the start of the Innovation Hub Phase 2 at an investment of over AED440 million
- The Innovation Hub Phase 2 project will add more than 355,000 square feet of space for technology, education and new media businesses.
- Dubai’s real estate market is in high demand, with occupancy rates across the city at 83% – the highest since 2014.
Dubai, UAE: TECOM Group PJSC (DFM: TECOM), (“Company” or “Group”), has announced Phase 2 of the Innovation Hub at Dubai Internet City, as a Dubai legal entity and business easily attracted a large volume of international companies and investors. The Group is expanding its leasing portfolio to capture the growing demand in Dubai’s commercial real estate market supported by the emirate’s economic development and the government’s development strategies.
The new investment of AED442 million underlines TECOM Group’s commitment to expanding and aligning its portfolio to the needs of the emerging sector and attracting global companies. It will provide clients with high-quality commercial office buildings, high-quality office spaces and HQs designed to clients’ specifications.
Abdulla Belhoul, Chief Executive Officer of TECOM Group, said: “TECOM Group remains the backbone of Dubai’s business center proposition. New regulatory frameworks and ease of doing business accelerate economic growth and strengthen investor and business confidence. We are seeing the success of our leadership’s economic diversification strategy reflected in the performance of our commercial and industrial portfolio this year due to the expansion of new companies and capabilities.
“Across our portfolio, existing customers are expanding their operations, which is consistent with the influx of new foreign capital. Bespoke solutions such as the Innovation Hub address the need for high-quality commercial spaces, helping to strengthen Dubai’s position as an attractive global destination for business and talent. It also reinforces TECOM Group as the largest commercial real estate owner and our key role in driving business development in Dubai.”
TECOM Group’s Q3 2022 financial performance showed an upward trend in the real estate market. Revenue came in at AED 490 million, growing by 12.48% year-on-year (YoY), driven by increased occupancy rates across the portfolio, particularly offices, warehouses, and staff quarters.
Innovation Hub Phase 2 expands TECOM Group’s assets with two high-rise office buildings, four retail offices, retail spaces and more than 800 parking spaces. To be completed by 2024, Innovation Hub Phase 2 will provide more than 355,000 square meters of gross leasable area (GLA).
Launched in 2018, the first phase of the Innovation Hub is nearing full occupancy, giving tech giants such as Google, Hewlett-Packard, Gartner and China Telecom a base in the region. With additional phases, the completed Innovation Hub project is expected to add more than 1.2 million square feet of space for technology, education and new media businesses of all sizes to the Group’s portfolio.
TECOM Group has developed a global business and technology hub under Dubai Internet City. Today, it represents a complete community of Fortune 500 companies, SMEs, startups and entrepreneurs. Recent additions include Motorola Solutions and Intel, while longtime clients 3M, Visa and Meta upgraded to new headquarters this past year. Dubai Internet City also houses more than 15 innovation centers powered by clients such as Visa, MasterCard, SAP, Google and 3M, promoting digital transformation across the region.
Commenting on behalf of Dubai Internet City, Ammar Al Malik, Senior Vice President – Commercial Leasing, TECOM Group PJSC, said: “Dubai’s pursuit of a knowledge economy and innovation rests on a strong technological framework. For more than 20 years, Dubai Internet City has provided the necessary infrastructure and environment where the entire technology community can come together. Ready-to-use resources like our Innovation Hub allow customers to get first-hand. Expanding our region’s commercial offering to meet the Emirate’s growing business appetite will enrich our global community with innovation-driven products and talent.”
According to the CORE Dubai Market Report Q3 2022, the Emirate is seeing growth in new licenses and residents, increasing demand in the commercial leasing sector. The report also found that office occupancy rates across the city are at their highest since their peak in 2014, reaching 83% in Q3 compared to 78% last year.
About Dubai Internet City
Dubai Internet City, a member of TECOM Group PJSC, is the largest technology hub in the MENA region. Home to Fortune 500 companies, SMEs, start-ups and entrepreneurs, Dubai Internet City has been a cornerstone of the UAE’s strategy for economic diversification and digital transformation for 20+ years. Founded in 1999, TECOM Group is the owner, manager and operator of 10 strategic, sector-focused business districts across Dubai and has played a major role in Dubai’s rapid growth in knowledge and innovation-based economy.
About TECOM Group PJSC
TECOM Group has been developing strategic, sector-focused business districts across Dubai since 1999. TECOM Group is well positioned to continue to play a key role in strengthening Dubai’s status as a global business and talent hub.
The TECOM group’s portfolio consists of 10 business districts that cater to 6 key knowledge-based economic sectors, including design, education, manufacturing, media, science, and technology. The group offers a diverse and tailored rental portfolio – including offices, co-working spaces, warehouses and land – to more than 7,800 clients and more than 100,000 professionals.
TECOM Group offers additional value-added services to bring a competitive and attractive environment for businesses and entrepreneurs to succeed and facilitate interaction between members of the regional community. Government and corporate services are made available through a platform of integrated smart services, “axes”, that improve ease of doing business and provide members of the public with a seamless experience.
TECOM Group also provides specialized industrial facilities, including media production studios, laboratories and higher education campuses. in5, its platform that enables entrepreneurs and startups, provides innovation centers that support technology, media, and design startups and SMEs. Its future-oriented co-working spaces D/Quarters bring inspiring workplaces to employers, and the “GoFreelance” package offers up to 2,400 freelance talents.
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TECOM PJSC Group