Latest news with #AED1.6bn
Arabian Business
04-03-2025
- Business
- Arabian Business
Salik announces $626m revenue and 498m trips last year
Salik, Dubai's exclusive toll gate operator, has announced its financial results for last year, with total revenue growing by 8.7 per cent to AED2.3bn ($626m). The company said that EBITDA for the full year reached AED1.6bn ($436m), a 13.6 per cent YoY growth. Salik's net profit before taxes totalled AED1.28bn ($348m) in 2024, marking a strong 16.6 per cent YoY increase, while it generated net profit after taxes of AED1.16bn ($449m) in FY24, a 6.1 per cent YoY increase. Salik results In light of the strong year performance, the Board of Directors propose a dividend of AED619.8m ($169m) to be paid during H1 2025 (equivalent to 8.2645 Fils per share). This brings total dividends for 2024 to AED1.16bn ($449m), representing 100 per cent of 2024's net profit and a 6.1 per cent YoY increase compared to FY23. In terms of operations, total revenue-generating trips recorded 498.1m, rising by 8 per cent YoY at the back of the launch of the two new Salik gates. Mattar Al Tayer, Chairman of the Board of Directors of Salik, said: 'Salik has reported a very strong year, with healthy revenue growth and record profitability performance. 'During the past year, Salik proudly reached significant strategic milestones, having introduced two new toll gates within the core tolling business and established multiple partnerships. 'These strategic partnerships support our ambition to become a global leader in providing sustainable and smart mobility solutions'. Ibrahim Sultan Al Haddad, CEO of the toll operator, said: 'We are optimistic about the positive trends in Dubai's economy, which align with and support our growth and vision. We are pleased to revise our guidance for FY25 upwards, projecting revenue growth of 28-29 per cent compared to FY24.'
Arabian Business
20-02-2025
- Business
- Arabian Business
Dubai Internet City adds $27.2bn to GDP
Dubai Internet City has added AED100bn ($27.2bn) to Dubai's GDP over the past 15 years, according to an impact study conducted in partnership with Accenture. The Dubai Internet City – Impact Assessment study quantifies the digital economy contributions of the region's leading tech hub, one of TECOM Group PJSC's 10 sector-specific business districts, since its establishment in 1999. The study comes as Dubai continues its upward trajectory as a global tech hub, contributing towards strategic initiatives such as Dubai Economic Agenda 'D33'. The district today generates 65 per cent of Dubai's technology sector GDP. Dubai Internet City Ammar Al Malik, Executive Vice President of Commercial at TECOM Group and Managing Director of Dubai Internet City, said: 'In line with Dubai's visionary roadmap to nurture the technology sector and enhance its role as a key economic contributor, Dubai Internet City has enabled both the regional digital economy and disruptive innovation for more than 25 years. 'This impact study reflects Dubai Internet City's unwavering commitment to nurturing tech innovation that accelerates sustainable prosperity – for our economy and our people – through our globally attuned ecosystem for technology and artificial intelligence (AI) companies as well as global talent. 'We will continue to nurture such collaborations to build a future powered by shared ingenuity, in line with the vision of Dubai Economic Agenda 'D33'.' Dubai Internet City's community has facilitated the creation of more than 125,000 direct and indirect jobs, with AED1.6bn ($436) of investments to support training and talent development over the years, according to the study. Home to 4,000 customers, including multinational giants, Fortune 500s, and start-ups, and more than 31,000 professionals, the district marked its 25th anniversary in 2024. Dubai Internet City was unveiled on 29 October 1999 by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to strengthen Dubai's and the UAE's knowledge economy. The impact study notes the power of Dubai Internet City's pro-innovation infrastructure as a uniting platform for professionals, including AI pioneers, from more than 150 countries, leveraging Dubai's position as a global gateway to international expansion. In addition, the district offers unparalleled operational support to customers, including seamless access to more than 200 corporate and government smart services through TECOM Group's axs portal to enhance the ease of doing business for its community. The success of Dubai Internet City's diversified talent development and knowledge-sharing platforms is demonstrated by growth across its community. Women comprise more than 25 per cent of Dubai Internet City's workforce, and since 2021, the number of women-run start-ups has doubled at in5 Tech, the sector-dedicated vertical of TECOM Group's in5 incubator based at the district. Start-ups and entrepreneurs at Dubai Internet City have raised AED8bn ($2.2bn) in funding over the years, with notable unicorns in the district's legacy including Careem and Souq. Internet City has championed the digital economy's growth since its inception by uniting global industry heavyweights for 25 years, conducting more than 800 events since 2021 to facilitate knowledge exchange and diversified talent development. The district's community includes global industry leaders such as Oracle, SAP, Dell Amazon, Google, Tencent, Huawei, Mastercard, and Visa. Global leaders 3M, IBM, Ericsson, and Cisco are among the global customers that operate 19 dedicated Innovation and Research and Development (R&D) Centres at Dubai Internet City to drive technological advancements. Dubai Internet City is part of TECOM Group's portfolio of 10 sector-specific business districts, which also includes: Media City Studio City Production City Knowledge Park International Academic City Science Park Industrial City Design District (d3)
Arabian Business
06-02-2025
- Business
- Arabian Business
TECOM net profit surges 14% to $330m after record revenue in FY2024
With occupation rate improving to 94 per cent, higher rental rates, and a retention rate at 92 per cent for the full year 2024, TECOM Group announced its revenue increased by 11 per cent YoY during the financial year to more than AED2.4bn ($650m). EBITDA increased 12 per cent YoY to reach AED1.9bn ($520m), reflecting strong operational performance across all business segments. EBITDA margin increased to 77 per cent, a 1 per cent increase compared to FY 2023. Net profit was up 14 per cent to AED1.2bn ($330m), while funds from operations (FFO) exceeded AED1.6bn ($440m) due to an increase in revenue and operational efficiencies. TECOM profits Malek Al Malek, Chairman of TECOM Group, said: 'TECOM Group's strong results in 2024 reaffirm our commitment to leveraging Dubai's robust economic fundamentals and contributing to its knowledge economy by attracting global companies and skilled talent across six key sectors. 'Supported by its consistent track record and its strategic roadmap, TECOM Group continues to attain strong performance, in addition to expanding its commercial and industrial portfolios through targeted acquisitions and the development of high-quality assets. 'The AED2.7bn ($740m) of investments announced through 2024 will further expand the Group's portfolio, enabling its continued sustainable growth.' Abdulla Belhoul, Chief Executive Officer of TECOM Group, said: 'Led by dynamic non-oil GDP growth, Dubai and the UAE are delivering sustained growth across the commercial real estate and the industrial sectors. We are perfectly positioned to support this trajectory as the leading owner and operator of specialised business districts that are attracting global companies and talent to the emirate. 'Driven by robust asset performance, strong customer demand, prudent cost management, and increased customer satisfaction, TECOM Group delivered substantial growth across revenue, EBITDA, and property valuation in 2024. We are confident in our ability to contribute towards Dubai's thriving economy as well as its blueprint for future growth as envisioned by Dubai Economic Agenda 'D33'.' Assessment of the group's Investment Properties (IP) portfolio, conducted by CBRE, ascertained a fair value of AED28bn ($7.62bn) as of 31 December 2024, representing a like-for-like increase of 11 per cent compared to 2023 level, and an increase of 22 per cent including new acquisitions. For Q4 2024, r evenue increased 11 per cent YoY to AED643m ($175.1m) and EBITDA grew by 9 per cent, reaching AED458m ($124.7m). Net profit was AED286m ($77.9m), lower by 8 per cent compared to Q4 2023 due to the application of corporate tax that came into effect from 2024 and the increase in financing cost for new acquisitions. The Board of Directors proposed a dividend payment of AED400m (8 fils per share) for the second half of 2024. The board has also reviewed the interim cash dividend for the second half of 2025 which is expected to increase by 10 per cent.
