Dubai business park operator TECOM Group is set to expand its portfolio through acquisitions and new projects as it sees continuing demand for commercial space in the UAE.

The company is planning to make acquisitions and deliver new buildings, as well as purchase new land to cater to demand in the industrial sector, it said in its management and analysis of the 2023 financial results.

“As part of our growth strategy, we will be looking to expand our commercial offerings by a combination of strategic acquisitions and developing new buildings,” the company said in the report filed on the Dubai Financial Market (DFM) on Thursday.

“[We] will also look for the opportunities to buy additional land to cater land lease demand especially in the industrial sector.”

TECOM Group, which manages and operates 10 business districts across Dubai, made its debut on the Dubai bourse in 2022 after raising AED 1.7 billion ($462 million) in an initial public offering (IPO). The company reported AED 1.078 billion in net profit for 2023, up by 49% over the previous year.

The company said that despite the challenging macro-economic environment, it remains confident in the economic prospects of the UAE and that it expects the market to remain strong and resilient on the back of ongoing government reforms.

The outlook for the commercial market in Dubai alone remains bright, as there is high demand and limited availability of quality office space, it said.

It noted that demand for new Grade A developments has continued to intensify this year, with local and international occupiers increasingly interested in efficiently managed, ESG accredited and well-maintained office spaces.

“We plan to capitalise on the high demand for Grade A space and ESG compliance through new developments and by enhancing our existing assets,” TECOM said.

“Furthermore, rising interest rates have impacted business cash flows as we see increasing requests for consolidation of space, and we are making larger office spaces available to existing and prospective tenants.”

(Writing by Cleofe Maceda; editing by Seban Scaria)