Dubai Academic City deal pushes TECOM’s total investments past AED 5.5 billion since 2022 listing as education cluster hits 99% occupancy
TECOM Group acquired an integrated university campus spanning over 300,000 square feet in Dubai International Academic City for AED 125 million ($34 million), responding to surging global demand for premium educational assets in the UAE.
The acquisition brings TECOM’s total investments across its commercial and industrial portfolio to over AED 5.5 billion since listing on the Dubai Financial Market in July 2022. The company plans to upgrade and enhance the campus facilities to meet international quality standards.
Education Sector Boom Drives Investment
The deal reflects robust demand from international universities seeking strategic entry into Dubai’s education market, driven by government initiatives including the National Strategy for Higher Education 2030, Dubai Economic Agenda D33, and Education 33 Strategy E33. These frameworks position Dubai as a regional education hub targeting knowledge-based economic growth.
TECOM’s Education Cluster—comprising Dubai International Academic City and Dubai Knowledge Park—currently operates at a 99% occupancy rate and hosts over 85% of students enrolled in private higher education institutions across Dubai. The cluster serves more than 38,500 students through purpose-built infrastructure including research spaces and student accommodation.
CEO Abdulla Belhoul stated the acquisition strengthens Dubai’s position as a global education and talent development hub, noting that Dubai International Academic City is well-positioned to attract academics and students worldwide.
Strategic Campus Portfolio Expansion
Dubai International Academic City hosts globally recognized institutions including Amity University Dubai, IIM Ahmedabad’s first international campus, University of Birmingham Dubai, and American University in the Emirates. The district offers learning pathways from bachelor’s to postgraduate programs within an integrated ecosystem.
TECOM financed the acquisition through existing resources while maintaining healthy leverage and liquidity positions. The transaction followed rigorous procedures and independent evaluations by regulatory-accredited parties, ensuring compliance with governance requirements.
The company has demonstrated aggressive expansion since going public, including a AED 1.6 billion acquisition of 138 land plots spanning 33 million square feet in Dubai Industrial City in August 2024. Dubai Holding Asset Management, owned by Dubai’s ruler, holds 86.5% of TECOM, with the remaining 13.5% publicly traded.
Market Context: Education Real Estate Demand
The acquisition signals institutional confidence in Dubai’s education sector growth trajectory. International universities are competing for premium campus assets as the emirate attracts students from emerging markets seeking Western-accredited degrees at competitive costs compared to US and UK institutions.
Dubai’s strategic location, visa-friendly policies, and English-language instruction create a compelling value proposition for both universities and students. TECOM’s 99% occupancy rate indicates limited available space, supporting premium valuations for well-located educational assets.
TECOM shares trade at AED 3.36 on DFM, up approximately 3% year-over-year, reflecting steady investor confidence in the company’s diversified portfolio across media, tech, and education clusters.
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