Tecom Group, the operator of business districts that are home to more than 7,800 companies, is constructing an office project at Dubai Internet City amid higher demand for commercial property in Dubai.
The company has broken ground on the second phase of the Innovation Hub with a total investment of Dh442 million ($120.35 million), the company said on Monday in a filing to the Dubai Financial Market, where its shares are traded.
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.
“Across our portfolio, existing customers are expanding their operations, complemented by an inflow of new foreign investment,” said Tecom Group chief executive Abdulla Belhoul.
“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.”
The move comes at a time when Dubai’s economy continues to recover from the coronavirus pandemic on the back of government initiatives and efforts to minimise the impact of the Covid-19 pandemic.
The emirate's economy expanded by 4.6 per cent on annual basis in the first nine months of this year to about Dh307.5 billion, driven by efforts to solidify its position as a business, financial and tourism centre, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said earlier this month.
“This exceptional performance is the result of the collective efforts of various entities to make Dubai a global leader across all sectors,” he said.
The second phase is being constructed following the success of the first phase of the project, which is nearing total capacity and is home to global technology companies such as Google, Hewlett-Packard, Gartner and China Telecom, said Tecom.
“Ready-to-use facilities like our Innovation Hub enable customers to hit the ground running,” said Ammar Al Malik, executive vice president of commercial leasing at Tecom Group.
“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.”
Citywide office occupancy in Dubai hit its highest levels since peaking in 2014, rising to 83 per cent in the third quarter of this year, compared with 78 per cent last year, according to the latest Dubai Market Report from Core consultancy.
Tecom Group raised Dh1.7 billion from its initial public offering earlier this year. The listing was 21 times oversubscribed, with total gross demand at more than Dh35 billion.
The group reported a record 70 per cent surge in its third-quarter profit, driven by solid demand in the commercial property market and the strong growth of the emirate's economy.