Dubai’s Tecom to distribute $54m cash dividend for second half of 2022

The move comes after company reported a 28% increase in its full-year net income

Tecom Group comprises 10 business districts that include Dubai Internet City, Dubai Media City and the Dubai Design District. AP

Tecom Group, the operator of business districts in Dubai that are home to more than 9,500 companies, has approved a cash dividend of Dh200 million ($54.46 million) for the second half of 2022 after reporting a surge in net profit for the year.

The move brings the total dividend for the second half of 2022 to Dh400 million.

The approved distribution is “in line with the group’s previously announced dividend policy of issuing Dh800 million annually, to be distributed in semi-annual instalments” until September 2025, the company said on Wednesday.

“Today’s dividend announcement reflects our ongoing confidence in Tecom group’s growth prospects and recognises the group’s strong financial position at the end of 2022,” said chairman Malek Al Malek.

The company reported a 28 per cent increase in its 2022 full-year net income, as revenue rose amid the continued growth of Dubai's economy.

Profit for the 12-month period to the end of December climbed to about Dh726 million from a year earlier.

Revenue for the period was up 12 per cent on an annual basis to Dh1.97 billion, driven by higher occupancy levels, stronger customer retention rates and an increase in the number of new customers across the Tecom Group portfolio.

“Buoyant consumer confidence and an increase in demand for commercial and industrial real estate in Dubai have positively contributed to our strong cash-flow generation,” said Mr Al Malek.

“When combined with favourable government strategies and initiatives which continue to enhance the ease of doing business and attract greater foreign direct investment, we can continue to realise unparalleled achievements and reward our shareholders with attractive and sustainable returns.”

Tecom comprises 10 business districts that include Dubai Internet City, Dubai Media City and the Dubai Design District.

Nine in 10 Tecom business districts are in free zones that permit 100 per cent foreign ownership, with tenants including Meta, Google, Visa, BBC, CNN, Unilever and Dior.

Tecom raised Dh1.7 billion from its initial public offering on the Dubai Financial Market in June last year.

The company, which started trading in July, said it would remain focused on developing new and existing assets.

In December, it began the construction of an office project, the second phase of the Innovation Hub, with a total investment of Dh442 million.

The project will have two high-end office buildings, four boutique offices, retail spaces and more than 800 parking spaces.

Set for completion by 2024, the Innovation Hub Phase 2 will provide more than 355,000 square feet of gross leasable area, Tecom said at the time.