TECOM Group breaks ground on specialised tech offices at Dubai Internet City amid high demand for commercial real estate in Dubai

Innovation Hub Phase 1 is nearing its full capacity. It houses global tech players Google and Hewlett-Packard as well as Gartner, China Telecom, and Gartner.

This groundbreaking signal signals the beginning of Innovation Hub Phase 2 with an investment of more that AED440 million

Phase 2 of the Innovation Hub Phase 2 project will provide more than 355,000 square footage for new media, technology and education businesses.

Dubai's commercial real property market is highly in demand. Dubai's citywide occupancy levels are at 83%, the highest level since 2014.

DUBAI (United Arab Emirates), Dec. 19, 2022 /PRNewswire/ -- TECOM Group PJSC ("DFM: TECOM") (the "Company") has opened Phase 2 of Dubai Internet City's Innovation Hub Phase 2. Dubai's legal framework and ease-of-doing business have attracted a large number of international investors and companies. To capture the growing demand in Dubai's commercial property market, the Group is expanding its leasing portfolio. This is due to the government's progrowth strategies and economic development of Dubai.

The AED442million investment by TECOM Group demonstrates its commitment to adapting its portfolio to meet emerging sector requirements and attracting global businesses. It will provide customers with high-quality commercial offices, state-of the-art office space and HQs that are tailored to their needs.

Abdulla Belhoul is the Chief Executive Officer at TECOM. He stated that TECOM remains a pillar of Dubai's business hub proposition. The ease of doing business and new regulatory frameworks are driving economic growth and strengthening investor and business confidence. Due to the influx of talent and new companies, we are seeing the success of our leadership’s economic diversification strategy in our performance in commercial and industrial real property portfolio this year.

"Our portfolio has existing customers expanding their operations and a steady inflow of foreign investment. The Innovation Hub is a bespoke solution that addresses the demand for high-quality commercial space. This helps Dubai to become a global business and talent center. This also confirms TECOM Group's position as Dubai's largest commercial realty owner. It is also a key part of our role in driving innovation in Dubai and business growth.

The upward trend in commercial real estate markets was reflected in TECOM Group's Q3-2022 financial performance. The portfolio's rising occupancy levels, particularly in warehouse and office spaces, drove an increase in revenue of AED 490 millions, or 12.48%, year-on-year (YoY).

The Innovation Hub Phase 2 adds to TECOM Group’s assets. It includes two high-end office buildings and four boutique offices. There are also retail spaces, as well as more than 800 parking spots. The Innovation Hub Phase 2 will be completed in 2024 and provide over 355,000 square feet gross leasable area.

The Innovation Hub's first phase was launched in 2018. It is now almost full capacity and provides a base for tech giants such as Google, Hewlett-Packard Gartner, China Telecom, Gartner, and Hewlett-Packard. The completed Innovation Hub project will add over 1.2 million square footage to the Group's portfolio for technology, education, and new media businesses of any size.

TECOM Group created Dubai Internet City as a global hub for technology and business. It now houses a diverse group of Fortune 500 companies, entrepreneurs, SMEs, start ups, and start-ups. Motorola Solutions and Intel have recently joined the group, while long-standing customers 3M and Visa upgraded to new headquarters in the past year. Dubai Internet City is home to 15 innovation centers that are powered by customers such as Visa, MasterCard and SAP. These centres promote digital transformation in the region.

Ammar Al Malik (Executive Vice President - Commercial Leasing), TECOM Group PJSC commented on behalf Dubai Internet City: "Dubai's pursuits of a knowledge- and innovation-based economy are dependent on a strong technology framework. Dubai Internet City, which has been providing the infrastructure and environment for the entire tech community for more than 20 years now, is a beacon of hope. Customers can get started quickly with ready-to-use facilities such as our Innovation Hub. To meet the Emirate's growing demand for business, we will expand our district's commercial offerings to provide opportunities for innovation-driven brands as well as talent.

CORE Dubai Market Report Q3 2022 shows that the Emirate has seen growth in residents and licenses, which is boosting commercial leasing demand. According to the report, office occupancy rates in the city are up to 83% in Q3 as compared to 78% in 2014.

Information about Dubai Internet City

Dubai Internet City is a member of TECOM PJSC and the largest technology hub in MENA. Dubai Internet City has been the heart of UAE's digital transformation and economic diversification for over 20 years. It is home to Fortune 500 companies as well as SMEs, entrepreneurs and start-ups. TECOM Group was established in 1999 and is the owner, manager, and operator of 10 strategically-focused, sector-focused business areas across Dubai. It has been a key contributor to Dubai's rapid growth in knowledge-based and innovation-based economies.

About TECOM Group PJSC

Since 1999, TECOM Group has been creating strategic and sector-focused business districts in Dubai. TECOM Group has the ability to play an important role in Dubai's growth as a global business hub and talent center.

The TECOM Group portfolio consists 10 business districts that cater to six vital knowledge-based economic areas, including design and education, manufacturing, media, science, technology, and media. The Group offers a diverse and custom-made leasing portfolio that includes offices, coworking spaces, warehouses, land, and other facilities to more than 7,800 customers and over 100,000 professionals.

TECOM Group provides additional value-added services that enable entrepreneurs and businesses to flourish in a favorable environment. It also facilitates engagement between members of the local community. Axs, an integrated smart service platform that connects government and corporate services, makes it easier to do business and offers community members a seamless experience.

TECOM Group also offers industry-specific facilities such as media production studios and laboratories, higher education campuses, and universities. In5, the platform that supports entrepreneurs and start-ups offers innovation centers to support media, tech, and design start ups and SMEs. The future-focused coworking spaces D/Quarters provide stimulating work environments to tenants. Additionally, the "GoFreelance” package provides approximately 2,400 freelance talent.

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