TECOM Group PJSC has announced the launch of the fourth phase of Innovation Hub at Dubai Internet City, reinforcing its part in promoting the UAE’s technological economy in line with the national digital economy strategy and Dubai’s D33 economic agenda. The new phase responds to growing demand from global multinational companies for Grade A office space in future-focused economic sectors – a development particularly relevant for those following UAE housing policy news today, in the context of economic diversification alongside the creation of high-paying jobs.
Valued at AED 615 million, the fourth phase of Innovation Hub will deliver a total leasable area of 263,000 square feet, increasing TECOM Group’s total investment in the project to AED 2 billion. The development strengthens Dubai Internet City’s standing as the region’s leading technology hub and forms part of TECOM Group’s comprehensive planned growth plan aimed at creating sustainable long-term value for shareholders.
The launch follows strong demand for earlier phases of Innovation Hub. Phase three was fully leased ahead of its scheduled completion in 2027, while phase two has already been completed and handed over to Fortune 500 companies and digital economy leaders. Phase one remains the foundation of the project and hosts major global technology firms, including Google and Gartner.
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Project funded from internal resources while continuing to have healthy leverage
Upon completion in 2028, the fourth phase will further enhance TECOM Group’s portfolio of Grade A commercial assets, enabling the group to better serve both existing and new technology tenants. The project is being financed through the group’s internal resources while maintaining healthy leverage and liquidity levels. The development builds on TECOM Group’s robust financial performance during the first nine months of 2025, powered by increased occupancy, increased rental rates, improved operational proficiency, and continued portfolio expansion:
- Revenue exceeded AED 2.1 billion – a year-on-year increase of 20 percent
- Net profit advanced above AED 1.1 billion – up 18 percent compared to the same period in 2024
Established in 1999, Dubai Internet City has evolved across the region’s largest technology hub, home to multinational corporations, startups, and Fortune 500 companies, and accounts for about 65 percent of Dubai’s technology GDP. The project forms part of TECOM Group’s wider portfolio of specialized business districts across Dubai, supporting innovation and growth across multiple economic sectors. The expansion of Innovation Hub indirectly affects the in-depth breakdown of rental prices by Dubai neighborhoods, as the concentration of highly paid technology professionals in Dubai Internet City fuels demand for residential property in nearby areas such as Dubai Marina, Jumeirah Lake Towers, and Business Bay, pushing rental rates higher through an increase in affluent tenants.
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The full pre-completion leasing of phase three highlights a shortage of high-quality office space in the technology sector. Companies are willing to commit to long-term leases on under-construction assets to secure a presence in a prestigious hub. The presence of corporations such as Google and Gartner in phase one creates a network effect, attracting other technology firms seeking proximity to industry leaders. TECOM Group’s strategy of developing specialized clusters for different industries has demonstrated success. In addition to Dubai Internet City, which focuses on technology, the group manages districts dedicated to media, design, manufacturing, and other sectors. This concentration creates environments in which companies gain access to talent, partners, and clients within close proximity:
- Dubai Media City for media and creative industries
- Dubai Design District for fashion and design
- Dubai Industrial City for manufacturing
- Dubai Science Park for research and science-based companies
Financing the project with internal resources, without considerable external borrowing, underscores TECOM Groupfinancial status of strength and management’s trust in the project’s returns. The company is likely positioning for continued rental growth and high occupancy, supported by the limited supply of quality office space in Dubai Internet City and sustained demand from global technology corporations expanding their Middle East presence.
