Innovation Hub Phase 1 is approaching full capacity, housing tech players such as Google, Hewlett-Packard and Gartner.
The group is expanding its leasing portfolio to capture the increasing demand in Dubai’s commercial real estate market underpinned by the emirate’s economic development and the government’s pro-growth strategies, a statement said.
The Dhs442m new investment will offer customers commercial office properties, working spaces and headquarters tailored to customer specifications.
The Innovation Hub Phase 2 will have two high-end office buildings, four boutique offices, retail spaces and more than 800 parking spaces.
To be completed by 2024, it will provide more than 355,000 square feet of gross leasable area.
Launched in 2018, the first phase of the Innovation Hub is almost at full capacity, housing tech players such as Google, Hewlett-Packard, Gartner and China Telecom.
With additional stages in the pipeline, 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 remains a pillar for Dubai’s business hub proposition. New regulatory frameworks and the ease of doing business are accelerating economic growth and reinforcing investor and business confidence,” said Abdulla Belhoul, chief executive officer of Tecom Group.
“We’re seeing the success of our leadership’s economic diversification strategy reflected in our commercial and industrial real estate portfolio performance this year due to an influx of new companies and talent.”
“Across our portfolio, existing customers are expanding their operations, complemented by an inflow of new foreign investment. Bespoke solutions like the Innovation Hub address the need for high-quality commercial spaces, helping strengthen Dubai’s position as an attractive global business and talent hub. It also cements Tecom Group as the emirate’s largest commercial real estate owner and our key role in driving innovation and business growth development in Dubai.”
Meanwhile, Tecom Group’s Q3 2022 financial performance reflected the upward trend in the commercial real estate market.
Revenue came in at Dhs490m, increasing 12.48 per cent year-on-year, driven by rising occupancy levels across the portfolio, especially office, warehouse and worker accommodation.
Tecom Group has cultivated a global business and technology hub under Dubai Internet City. Today, it represents a community of Fortune 500 companies, SMEs, startups and entrepreneurs.
Recent additions include Motorola Solutions and Intel, while customers 3M, Visa and Meta upgraded to new headquarters this year.
Dubai Internet City also features over 15 innovation centres powered by customers like Visa, MasterCard, SAP, Google and 3M.
Ammar Al Malik, executive vice president – Commercial Leasing, Tecom Group, stated: “Dubai’s pursuit of a knowledge and innovation economy relies on a robust technology framework. For more than 20 years, Dubai Internet City has provided the necessary infrastructure and environment where the complete tech community can converge. Ready-to-use facilities like our Innovation Hub enable customers to hit the ground running. Expanding our district’s commercial offering to cater to the Emirate’s growing business appetite will enrich our global community with innovation-driven brands and talent.”