DLD to track TECOM Groups AED 1.6 Billion Investment - Signals Golden Era for Industrial Property Investment in Dubai

Dubai's industrial property sector just received the ultimate endorsement with TECOM Group's strategic AED 1.6 billion land acquisition in Dubai Industrial City.

TECOM Group Reinforces Dubai's Industrial Property Investment Appeal

TECOM Group PJSC has approved an ambitious AED 1.6 billion investment to acquire 138 land plots spanning 33 million square feet in Dubai Industrial City, marking the largest industrial land acquisition approved by the company's Board of Directors on August 28, 2025. This strategic move expands TECOM Group's industrial portfolio to exceed 209 million square feet, reinforcing Dubai's position as the region's premier destination for property investment.

The acquisition follows TECOM Group's robust H1 2025 financial performance, which included 22% year-on-year growth in net profit to AED 737 million and 21% revenue increase to AED 1.4 billion, demonstrating the strong fundamentals driving Dubai's real estate sector.

Why Dubai Industrial Property Investment is Booming in 2025

Exceptional Occupancy Rates Signal High Demand

Dubai Industrial City currently operates at an occupancy level of 99% – including land plots acquired last year – amid accelerated growth in the UAE's and Dubai's manufacturing sector. This near-perfect occupancy rate indicates unprecedented demand for industrial space, creating a supply-constrained environment that benefits existing and new property investors.

Government Initiatives Drive Industrial Growth

The surge in industrial property demand aligns with key UAE economic initiatives:

• Operation 300bn: Boosting UAE manufacturing output to AED 300 billion
• Make it in the Emirates: Encouraging local production and manufacturing
• Dubai Economic Agenda D33: Doubling Dubai's economy by 2033

These initiatives are driving accelerated growth in the UAE's and Dubai's manufacturing sector, creating sustained demand for industrial real estate across Dubai Industrial City, Dubai South, JAFZA, and other key industrial zones.

Strategic Location Advantages

Dubai Industrial City's intelligently designed masterplan – comprising industrial land, storage, and logistics spaces – and proximity to Jebel Ali Port, Al Maktoum International Airport, and an Etihad Rail freight terminal have cemented its position as the destination of choice in the global supply chain.

Investment Performance Data: Industrial vs Traditional Property

Source: Property Monitor, DXB Interact, Arabian Business

The average rental yield for industrial real estate in Dubai in Q1 2025 stands at approximately 8.1%, significantly higher than the city's average residential yield of 6.2%. Select prime logistics units command yields up to 10%, making industrial property investment increasingly attractive to yield-focused investors.

Key Industrial Investment Zones in Dubai

Dubai Industrial City

• Size: Over 209 million square feet (post-acquisition)
• Occupancy: 99%
• Key Sectors: Food & beverage, base metals, transport, logistics
• Home to 350+ operational factories

Dubai South

• Focus: Aviation, logistics, and Al Maktoum International Airport connectivity
• Yield Potential: Up to 10% for prime logistics facilities
• Growth Driver: Expo legacy projects and aviation hub development

Jebel Ali Free Zone (JAFZA)

• Advantages: 100% foreign ownership, tax exemptions
• Strategic Position: Direct port access for import/export businesses
• Established: Mature industrial ecosystem with proven track record

Al Quoz

• Location: Central Dubai positioning
• Specialty: Light manufacturing and distribution
• Investment Appeal: Affordable entry point with capital appreciation potential

Financial Analysis: TECOM Group's Strategic Investment

The acquisition raises TECOM Group's total investments across its Commercial and Industrial portfolio to AED 4.3 billion since 2024, demonstrating institutional confidence in Dubai's industrial property sector. Key financial metrics include:

Investment Structure:

• Total Investment: AED 1.6 billion
• Land Plots: 138 spanning 33 million sq ft
• Financing: Through existing resources with flexible repayment schedule
• Revenue Recognition: Expected within 12-24 months

Previous Success:

TECOM Group's 2024 acquisition of 13.9 million sq.ft. of land in Dubai Industrial City has been fully leased out to leading customers across six vital sectors including food and beverage, base metals, and transport.

Market Trends Driving Industrial Property Demand

E-Commerce and Logistics Growth

Industrial property transactions surged by over 21% in 2024 compared to the previous year, indicating growing investor confidence in Dubai's logistics and manufacturing capabilities.

Supply Chain Diversification

Global companies are diversifying supply chains through the Middle East, with Dubai serving as a strategic hub connecting Asia, Europe, and Africa. This trend creates sustained demand for warehouse, manufacturing, and logistics facilities.

Manufacturing Sector Expansion

Industrial property demand in the area increased by about 15% in 2023, with strong investment demand from foreign companies in Asia and Europe, indicating international confidence in Dubai's manufacturing capabilities.

Investment Considerations for Industrial Property

Foreign Ownership Benefits

Dubai's free zones offer 100% foreign ownership for industrial properties, providing:

• Full ownership rights for international investors
• Tax-free environment with no corporate or personal income tax
• Simplified business setup procedures
• Long-term lease options (up to 99 years)

Financing and Regulatory Framework

• RERA Registration: All industrial developments must comply with Dubai's Real Estate Regulatory Agency requirements
• Escrow Protection: Developer payments held in escrow accounts ensure buyer protection
• DLD Fees: Dubai Land Department fees typically 4% of transaction value
• Golden Visa Eligibility: Industrial property investments may qualify for UAE residence programs

Future Outlook: Industrial Property Investment Prospects

Supply-Demand Dynamics

With Dubai Industrial City operating at 99% occupancy and limited new industrial land supply, property values and rental rates are positioned for continued growth. By 2025, as more companies settle in the area, industrial real estate demand is expected to rise further, offering even greater returns for investors.

Infrastructure Development

Ongoing infrastructure projects including:

• Etihad Rail freight network expansion
• Al Maktoum International Airport development
• Port expansion projects
• Smart city technology implementation

These developments enhance the investment appeal of industrial properties by improving connectivity and operational efficiency.

Frequently Asked Questions

Q: What makes Dubai industrial property investment attractive in 2025?

A: Dubai offers exceptional rental yields (8.1%-10%), 99% occupancy rates, government support through economic diversification initiatives, and strategic location advantages connecting global supply chains.

Q: Can foreign investors own industrial property in Dubai?

A: Yes, Dubai's free zones including Dubai Industrial City, Dubai South, and JAFZA offer 100% foreign ownership with tax advantages and simplified business setup procedures.

Q: What are typical rental yields for industrial properties in Dubai?

A: Industrial properties in Dubai generate average rental yields of 8.1%, with prime logistics facilities commanding up to 10% - significantly higher than residential properties at 6.2%.

Q: Which areas offer the best industrial property investment opportunities?

A: Dubai Industrial City (99% occupied), Dubai South (airport connectivity), JAFZA (port access), and Al Quoz (central location) represent the prime industrial investment zones.

Q: How does TECOM Group's investment impact the industrial property market?

A: TECOM's AED 1.6 billion investment demonstrates institutional confidence, reduces available land supply, and positions Dubai Industrial City for continued growth and rental rate increases.

Q: What government initiatives support Dubai's industrial sector growth?

A: Key initiatives include Operation 300bn (manufacturing growth), Make it in the Emirates (local production), and Dubai Economic Agenda D33 (economic doubling by 2033).

Ready to capitalize on Dubai's industrial property boom? With institutional investors like TECOM Group committing billions and occupancy rates at 99%, the time to explore verified industrial investment opportunities is now. Contact qualified property specialists to identify prime industrial assets aligned with your investment objectives and risk profile.