TECOM GROUP PJSC - Annual Report 2024

Where together is great for business

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Annual Report 2024

CONTENTS

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

TECOM Group has been a visionary force in shaping Dubai’s business landscape since 1999. Our 10 specialised business districts cater to diverse industries, fostering innovation and collaboration.

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OUR REGULATORY ANNOUNCEMENTS AND PERIODIC REPORTS CAN BE FOUND ON OUR GROUP WEBSITE.

tecomgroup.ae

Our values

Pioneering Attentive Committed By changing By upholding By taking the the game excellence long–term view Read more on page 40

Entrepreneurial By nurturing win–win relationships Read more on page 42

Our Vision

To lead the curation of innovative ecosystems that drive sustainable growth and future development.

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Our Purpose
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To drive sustainable, inclusive growth and innovation that promotes prosperity and community impact.

Our Mission

To create interconnected economic destinations that propel a vibrant economy, enhance work–life, and strengthen Dubai’s global reputation as one of the best places to do business worldwide. Read more about our success on page 16

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What’s Inside
Q&A with our
CEO Abdulla
Belhoul
2 2024 Highlights Environmental,
Our Business 4 Our Portfolio Social and Governance
Model: creating 6 Where We Operate 94 Letter from the CEO
See page 8 Our Customers 99 ESG Policies and Governance
the environment 10 Year in Review 125 Forward-Looking Statement
for business 126 EPRA Index
24
Strategic Report
to thrive 20 Chairman’s Statement Corporate Governance
134 Chairman’s Introduction
22 CEO’s Statement
135 At a Glance
What We Do: 26 Reasons to Invest
136 Our Governance Framework
30 Market Overview
Our Six Economic Sectors 38 Our Business Model 140 Our Board of Directors
148 Board Committees
44 Our Strategy
46 Business Overview 155 Our Executive Management
66 Property Review 159 Internal Controls and Compliance
See page 5 72 CFO’s Message 162 Engaging and Informing Our Shareholders
74 Financial Review
163 Supporting Our Society
80 Key Performance Indicators and Environment
82 Risk Management 164 2024 Events and Programmes
Dubai Internet City: See page 38 90 Stakeholder Engagement
A Vision-Turned Reality Financial Statements
Environmental, Social and Governance: 168 169 Board of Directors’ Report Independent Auditor’s Report
173 Consolidated Financial
Being a responsible corporate citizen Statements
177 Notes to the Consolidated
Financial Statements
216 EPRA Performance Measures
225 Glossary
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Environmental, Social and Governance: Being a responsible corporate citizen See page 99

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See page 16
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TECOM Group PJSC Annual Report 2024

HIGHLIGHTS – CONTINUED

HIGHLIGHTS

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Delivering Strong Financial Performance

Our full-year results reaffirm TECOM Group’s unwavering commitment to delivering robust, year-on-year growth, consistently outperforming in a competitive marketplace.

Our consistent performance, driven by high occupancy rates and strategic asset management, has significantly enhanced shareholder value, reinforcing our leadership in Dubai’s economic landscape.

Abdulla Belhoul

Chief Executive Officer TECOM Group

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Financial Highlights Key Operational Highlights
By the close of the year, TECOM By optimising our portfolio and
Group’s net profit surged by 14% prioritising tenant needs, TECOM
to AED 1,228 million, driven by Group continues to set new industry
strong operational performance benchmarks, fostering long-term
and increased occupancy rates. partnerships and sustainable growth.
Revenue
AED 2,402M ‘22 1,973 94%
‘23 2,173 Occupancy
+11% ‘24 2,402
Growth YOY
EBITDA
AED 1,854M ‘22 1,347 92%
Customer Retention
‘23 1,654
+12% ‘24 1,854
Growth YOY
EBITDA Margin
77% ‘22 68.2% AED 2,236M
‘23 76.1% Passing Annual Rent
+17% higher than in 2023
+1% ‘24 77.2%
Growth YOY
Net Profit
‘22 726
AED 1,228M 9.5 years
‘23 1,078 WALT Including Land
+14% ‘24 1,228
Growth YOY
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ESG Highlights

EPRA Measures

Throughout 2024, TECOM Group’s commitment to impact-led ESG practices has enhanced its environmental stewardship, governance and social responsibility across all business districts.

TECOM Group’s strong EPRA metrics demonstrate its commitment to industryleading standards, providing clear insights into its operational excellence and value creation for stakeholders.

EPRA Return AED 0.33 ‘22 0.20 43 410 ‘23 0.30 LEED Certified Buildings Net Active Start-ups +11% ‘24 0.33 +39% +8% Growth YOY Growth YOY Growth YOY EPRA NIY ‘22 6.6% 6.7% ‘23 6.7% 0.0% ‘24 6.7% 7.75% 20.3 Growth YOY Solar Energy Contribution Avg. Training hours per employees EPRA NAV per Share +7% +33% AED 4.14 ‘22 3.01 Growth YOY Growth YOY ‘23 3.43 +21% ‘24 4.14 Growth YOY 35% EPRA Earnings AED 1,638M ‘22 1,024 Female Employees ‘23 1,502 +9% ‘24 1,638 +1.4Growth YOY% Explore Our 2024 Achievements Growth YOY 3

TECOM Group PJSC Annual Report 2024

OUR PORTFOLIO – CONTINUED

OUR PORTFOLIO

Financial Statements

Strategic Report

ESG

Corporate Governance

Strategic Report ESG Corporate Governance

A thriving ecosystem of future growth

Our ecosystem

The Group is playing a strategic role in advancing Dubai’s commercial and industrial landscape and reaffirming its status as a global hub for investment and business.

10 6 4 Business Districts Sectors Segments

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TECOM Group PJSC Annual Report 2024
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Our Segments

Our leading commercial, industrial, and land leasing portfolio offers a diverse selection across various asset classes, sectors, and communities. Furthermore, our comprehensive range of government and business services enhances value and drives success for our clients.

Spread across a range of real estate products and ancillary business services.

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199M sq. ft.
Leasing Space
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Commercial Leasing Industrial Leasing
Offices Logistics
Retail Worker accommodation
Land Leasing Services
Industrial Land Business and Government Services (axs)
Commercial Land Co-working space
Innovation Centres Freelance services
for start-ups and Advertising and Venue
entrepreneurs Management (AVMS)
4
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Our Sectors

Our portfolio consists of 10 business districts catering to 6 vital knowledge-based economic sectors.

Manufacturing Technology Media Education Science Design 34% 20% 15% 14% 5% 12% Portfolio Revenue Mix by Sector

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5
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TECOM Group PJSC Annual Report 2024

WHERE WE OPERATE

Financial Statements

Strategic Report

ESG

Corporate Governance

Strategic Report ESG Corporate Governance

WHERE WE OPERATE – CONTINUED

An Integral Part of Dubai’s Economic Diversification

Our six vital knowledge based economic sectors are meticulously crafted to the unique needs of the industry. These areas offer our clients versatile and purposebuilt environments that facilitate operation, collaboration, growth, and success.

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Our Complementary Services Our Sectors
We also empower our customers and the
wider community with critical government
and business services, including:
Technology
axs – our business in5 – our enabling Media
and government platform for
digital platform to entrepreneurs and
support customers start-ups to grow
in countless way and succeed Education
Science
D/Quarters – our GoFreelance Design
future-focused – our business
co-working license package
spaces that deliver for freelance
stimulating work talent to operate
environments independently Manufacturing
axs D/Quarters In5
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153 92 Commercial Buildings Worker Accommodations

177M 1,140 Land Leasing Area (sq ft) Warehouses

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7
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TECOM Group PJSC Annual Report 2024

OUR CUSTOMERS – CONTINUED

OUR CUSTOMERS

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Creating Connected Communities

More than 11,900 businesses and 137,000 people call TECOM Group home. As the beating heart of Dubai’s economic development, TECOM Group is a rich business environment of over 11,900 businesses and more than 137,000 people. It is an ecosystem that has fostered customer loyalty for over two decades as 63% of our income comes from clients who have been with us for over five years and 33% for over a decade. The value we provide is clearly illustrated in the strength of the relationships we foster and the success that businesses at TECOM Group enjoy.

33% >10 years 17% <2 years

20% 2-5 years

30% 5-10 years

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We are delighted to be a principal business partner within Dubai Internet City, home to our regional headquarters for the CEMEA region. Dubai’s strategic location, exceptional talent, and worldclass infrastructure have helped Visa to grow the digital economy in more than 80 countries, further reinforcing Dubai’s status as an innovation hub.”

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TECOM Group has been instrumental in

setting up the new Himalaya facility in Dubai Science Park, providing outstanding support in infrastructure development and facilitating essential services seamlessly.”

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At Boston Scientific, we are proud to be part of Dubai Science Park, a hub that exemplifies innovation and forward-thinking. Being in this vibrant community underscores our commitment to improving patient outcomes and shaping the future of healthcare through collaboration and excellence.”

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Our relationship with Dubai

Knowledge Park (DKP) is more than just a location; it’s a true partnership that drives innovation and growth for both UOWD and the wider community. As a principal business partner, we have the privilege of collaborating with DKP’s dynamic ecosystem, connecting with likeminded institutions and organisations that share our commitment to education and knowledge exchange. DKP’s support has been integral to fostering opportunities for our students, enabling meaningful industry collaborations, and positioning UOWD as a leader in higher education within the region.”

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TECOM Group PJSC Annual Report 2024

YEAR IN REVIEW – CONTINUED

YEAR IN REVIEW

Corporate Governance Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Driving Growth, Innovation, and Excellence Across Dubai’s Business Landscape

Elevating our Premium Commercial and Industrial Portfolio

By the close of 2024, TECOM Group had completed its largest-ever period of expansion in its portfolio of premium commercial and industrial assets with a total investment of AED 2.7 billion. These comprise a series of deals that include the purchase of existing grade A office buildings, new developments and land in alignment with the Group’s strategic growth.

Total Investments 2024 AED 2.7B

Shaping the Future of Dubai’s Business Landscape

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Dubai Design District
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Thriving Customers and New Partnerships

In this milestone year, Dubai Internet City (DIC) has reinforced its global influence by being chosen by the South Korean government-backed National IT Industry Promotion Agency (NIPA) as the regional office for the Korea IT Cooperation Centre UAE (KICC UAE).

Customer Wins in 2024 Customer expansion

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Dubai Internet City

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Increased Footprint by Increased Footprint by New customers Customer Satisfaction +20% +15% +900 +87.1%

This collaboration highlights DIC’s role as a hub for international partnerships and serves as a gateway for Korean technology companies to expand into the Middle East by fostering strategic relationships with key government entities and industry leaders.

DIC’s success in attracting prominent new clients in 2024, including Dyson, Brunello Cucinelli, underscores its appeal to businesses seeking a thriving and innovative ecosystem. At the same time, DIC has demonstrated its commitment to supporting the expansion of existing customers. Notable examples include Bottega Veneta, Yango, and Z7 Communications, which have all scaled their operations within DIC. Furthermore, long-standing partners such as Heriot-Watt University and Middlesex University have significantly increased their footprints by over 20% and 15%, respectively, reflecting their confidence in DKP and DIAC’s ability to support sustained growth.

TECOM Group PJSC Annual Report 2024

YEAR IN REVIEW – CONTINUED

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Catalysing Start-up Success

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Growth at the start-up incubator Start-ups Supported
in5 is a testament to Dubai’s
+1,000
entrepreneurial credentials and
robust investor confidence in the Active Start-ups
city’s pro-business environment. Since 2023
+7.8%
More than 1,000 start-ups have been supported since
in5’s inception, a 7.8% increase in active start-ups from
the same period in 2023. Collective funding since its Collective Funding
inception reached an impressive AED 7.8 billion – an
increase of 163% since 31 December 2023. AED 7.8B
Increase in Collective
Funding Since 2023
in5 conducts bootcamps quarterly 163%
for young founders. They talk about
different stages of building a business,
the legal and hiring aspects, and even
fundraising. These topics are great
education and upskilling sessions as
we move to the next phase.
Atul Bansal
Founder at LivLyt, in5 entrepreneur
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Enhancing Communities and
Supporting Customer Growth
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Dubai International Academic City
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In 2024, TECOM Group enhanced its business ecosystems by improving services for new and existing customers.

The Group’s smart integrated business service platform, axs, won awards for innovation and customer service as a one-stop-shop for business and government services in 2024. A key example is the new partnership with VFS Global, adding visa processing and document attestation to the 200+ services already at axs. The addition of VFS Global supports over 11,900 customers and 137,000 professionals. Additionally, new co-working spaces like D/Quarters at Dubai Science Park offer flexible solutions for a fast-growing cohort of start-ups and SMEs, reflecting TECOM Group’s commitment to helping businesses grow and succeed.

Supported Professionals Number of transactions 137,000+ 182,000+ +8% YoY

Industry Collaborations and Awards

TECOM Group received multiple industry awards in 2024, reflecting its commitment to innovation and sustainability.

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Dubai Industrial City was named “Best Industrial Development” at the Real Estate Awards for its contributions to the UAE’s manufacturing sector, while the Group’s business services platform, axs, won awards in nine categories at the Stevie Awards. Additionally, the Dubai Supreme Council of Energy recognised TECOM Group with the ‘Exemplary Retrofit Project Award’ for its sustainability efforts. These achievements highlight TECOM Group’s focus on driving excellence across its operations.

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TECOM Group PJSC Annual Report 2024

YEAR IN REVIEW – CONTINUED

Financial Statements

Strategic Report

ESG

Corporate Governance

Strategic Report ESG

Corporate Governance

Major Events

Advancing Community Health

Empowering Emirati Women

FIFA Beach Soccer World Cup UAE 2024

In 2024, the Group reaffirmed its commitment to community wellness through enhanced participation in the Pink Caravan Initiative. The Group also organised impactful wellness workshops across its portfolio of business districts, empowering communities with knowledge on breast cancer awareness and the importance of early detection.

We celebrated Emirati Women’s Day in 2024 by hosting dynamic workshops and panel discussions that showcased the transformative impact of Emirati women on the UAE’s future. Khadija Al Bastaki, Senior Vice President of Dubai Design District (d3), shared her visionary insights on leadership and innovation in the creative industries, inspiring the next generation of female leaders.

d3 proudly supported the FIFA Beach Soccer World Cup UAE 2024, which brought together 16 international teams at a stadium in d3 with a capacity of 3,500 spectators, specially constructed in 25 days which hosted 32 matches in February 2024.

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~~February ‘24 March ‘24 April ‘24 May ‘24 August ‘24~~

The Good Store 2.0

Make it in the Emirates Forum Participation Dubai Industrial City is actively engaged in the Make it in the Emirates Forum, aligning with the UAE’s industrial strategy to position itself as a leader in future industries.

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Through our ongoing partnership with Emirates Red Crescent, we continue to support The Good Store initiative, offering a seamless donation platform during Ramadan and Eid Al-Fitr.

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Community Events
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A Decade of Design Excellence

Dubai Fashion Week:

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A Global Showcase

The third edition of Dubai Fashion Dubai Design District (d3) celebrated its 10th Week captivated international anniversary with the most expansive edition audiences by featuring iconic of Dubai Design Week, showcasing over international brands like Versace 500 designers and their groundbreaking and Roberto Cavalli alongside installations. As part of Design Week, d3 rising local talent, further also launched Design Next, a collaborative cementing Dubai’s position design initiative launched by Dubai Design as a global fashion capital. District (d3) and Isola Design Group, which is a first-of-its-kind exhibition in the UAE focusing on the circular economy. The exhibition aims to foster new perspectives on sustainable design, design technologies and innovative materials by local, regional and global designers and studios. ~~September ‘24 October ‘24 November ‘24~~ We Walk GITEX Global Participation

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Dubai Science Park
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TECOM Group organised WeWalk, an annual walkathon dedicated to promoting health and social responsibility while supporting important causes. The event encouraged physical activity and supported a range of important charitable causes.

Dubai Internet City played a pivotal role as a ‘knowledge partner’ at GITEX Global 2024, held from 14 to 18 October. The event showcased groundbreaking technologies and facilitated international partnerships.

TECOM Group PJSC Annual Report 2024

OUR SUCCESS STORY – CONTINUED

OUR SUCCESS STORY

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

Corporate Governance

C E

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ESG
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A VisionTurned Reality

Celebrating 25 years of Trailblazing Innovation

Since its inception in 1999, economy, DIC has become Dubai Internet City (DIC) has one of the most successful been a beacon of technological technology hubs worldwide, innovation and a cornerstone housing 4,000 companies of Dubai’s evolution into a and fostering innovation global tech hub. Created by and economic growth. H.H. Sheikh Mohammed bin Rashid Al Maktoum, to establish Dubai as a leader in the digital

How we are achieving it:

Creating industry ecosystems Fostering talent and innovation

Discover Our Success Story

It is said that all of mankind’s achievements throughout history have started as a dream and an idea. The world to come will be one driven by communications and internet innovations.”

His Highness Sheikh Mohammed

bin Rashid Al Maktoum

Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

Our Journey

1999

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Foundational Vision: Building Dubai’s Digital Future

Growth and Development: A Catalyst for Economic Diversification

Envisioned as more than a business district, Over 25 years, DIC has advanced the UAE’s DIC was created to be an incubator for digital economy by supporting innovation ideas, a meeting point for tech leaders, and entrepreneurship. The 2024 Innovation and a gateway for international firms. DIC Hub expansion reflects its commitment to aimed to attract multinationals and startups, infrastructure for technology, education, providing the infrastructure and support for and media, benefiting startups and success. This vision has materialised over the multinationals. With facilities like Alibaba past 25 years. DIC is home to global giants Cloud’s training centre, DIC enhances digital like Microsoft, IBM, Cisco, and Oracle while capabilities while offering flexible spaces nurturing startups within the DIC ecosystem. and access to talent, maintaining strong Dubai’s strategic location has reinforced occupancy in e-commerce, fintech, and AI. DIC’s importance as a hub for businesses entering new markets.

Contribution to Dubai’s GDP Customers Professionals AED 100B 4,000 31,000+ over 15 years 2004

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Investing for a sustainable future

Dear Shareholders,

I am pleased to present TECOM Group’s 2024 Annual Report, which outlines our key achievements and strategic milestones. We take pride in our progress and are optimistic about future opportunities as we contribute to Dubai’s economic growth. The city’s success is underpinned by its position as a global hub for investments and business, as well as ambitious government strategies and initiatives that have contributed to Dubai’s economy and enhanced the city’s performance across key sectors.

This continued GDP expansion is also driven by robust investments and government support aimed at diversifying the city’s sources of economic growth, as well as the inherent value of Dubai’s leading position as a global investment and talent hub.

Dubai’s position as a global hub has been solidified by decades of strategic investments in regulatory frameworks, infrastructure, public services, and specialised business districts.

Dubai’s unique status on the world map contributes to our ability to deliver sustained value to our stakeholders. The city’s infrastructure supports global connectivity, and its ease of doing business attracts investment and talent from around the world. At TECOM Group, our investment strategy aligns with these dynamics, and we are optimistic about the future we are shaping by harnessing our city’s robust fundamentals.

A Historic Investment Cycle

Within this positive context, TECOM Group embarked on a sustainable investment cycle in 2024, underpinned by an AED 2.7 billion roadmap. This strategic plan reflects our clear belief in Dubai’s economic fundamentals and unique proposition as a leading destination for investors and businesses.

We are proud to report strong performance in 2024, driven by the success of the Group’s strategy and the hard work of our teams.

Portfolio Development

During this landmark year, we acquired AED 1.5 billion worth of commercial and industrial assets and committed to investing AED 1.2 billion towards the development of premium office spaces at Dubai Internet City and Dubai Design District (d3). These investments are designed to enhance our portfolio, support revenue growth, and drive long-term value creation.

Through an AED 410 million transaction, we also acquired an additional land bank spanning 13.9 million sq. ft. for industrial leasing at Dubai Industrial City. This acquisition represents an important pillar of our strategy to advance the region’s industrial capacity and support Dubai’s vision to drive the growth of Industry 4.0.

Dubai’s significant economic expansion across high-growth sectors, including technology, education, design, and science,

The Group’s 10 business districts are integral to Dubai’s economic landscape, fostering a vibrant ecosystem of innovation and entrepreneurship.”

Net profit

AED M 1,228

+14% Growth YoY

Dividend per share

AED 0.16

Dividend Coverage 154%

is also a key driver of the Group’s investment strategy. We are witnessing exponential growth in these areas, and our investments focus on developing spaces and services that deliver immediate revenue growth, particularly in districts like d3, where demand is outstripping supply.

Empowering Knowledge and Talent

Future Outlook

A sustainable economy greatly relies on Committed to driving innovation and a skilled workforce, and TECOM Group economic diversification in Dubai and the has made strides in attracting educational UAE, we foresee opportunities for expansion institutions and partnering with industry in areas including artificial intelligence, cloud leaders to nurture local talent. In 2024, we computing, education, and manufacturing. welcomed more than 33,500 students across Celebrating milestones like Dubai Internet various educational initiatives and supported City’s 25th anniversary and the 20th 410 start-ups through our business districts. anniversary of Dubai Industrial City in 2024, Our districts are leading this effort, aligning we proudly reflect on our role in providing with the Dubai Economic Agenda ‘D33’ for competitive and specialised business talent development across our portfolio. districts that attract companies and talent With more than 137,000 employees across from every corner in the world. the Group’s ecosystems, we contribute significantly to Dubai’s economic aspirations. I want to express my gratitude to our nation’s

The continued high demand for our 10 business districts is fundamental to Dubai’s economy. Throughout 2024, we maintained high occupancy rates across all segments, encouraging our continued investment in new assets. This demand has enabled the Group to continue growing its revenues and profits in double digits while also expanding its customer base.

I want to express my gratitude to our nation’s visionary leadership for its continued support in guiding Dubai’s and the UAE’s business growth, as well as to all our shareholders, the Board of Directors, and the Group’s management, colleagues, and customers. I am confident that TECOM Group will continue to play a pivotal role in realising Dubai’s ambitions as a global hub for innovation and sustainable growth.

Delivering Value to Shareholders

Our focus on high-growth sectors has Commitment to Governance translated into a solid financial performance the Board of Directors, and the Group’s and Responsibility in 2024. We maintained regular dividend management, colleagues, and customers. The continued strength of the Group’s payments while witnessing considerable I am confident that TECOM Group will financial performance is also strengthened appreciation in share value, benefitting continue to play a pivotal role in realising by its commitment to environmental, social, from continuous year-on-year doubleDubai’s ambitions as a global hub for and governance (ESG) principles. In 2024, digit growth since our listing on the Dubai innovation and sustainable growth. we improved green energy infrastructure and Financial Market (DFM). Earnings per share energy efficiency across our portfolio. Our (EPS) reached AED 0.25 in 2024, and net Thank you for your ongoing support community initiatives in 2024 underscore profit improved by 14% compared to 2023, and partnership. our dedication to social responsibility. signifying TECOM Group’s strong financial ESG serves as a guiding framework for our health during this period. corporate decision-making process, ensuring strong governance, social impact, and environmental protection.

Malek Al Malek

Chairman TECOM Group

TECOM Group PJSC Annual Report 2024

CEO’S STATEMENT – CONTINUED

CEO’S STATEMENT

Financial Statements

Strategic Report

Strategic Report ESG Corporate Governance

ESG

Corporate Governance

A strategy for innovation and growth

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In 2024, we achieved significant strategic and financial milestones, reinforcing our position as a catalyst for innovation, investment, and sustainable economic development in Dubai. Our portfolio valuation increased significantly, reflecting our continued high occupancy and retention rates and the success of our investment strategy.

Our strategic acquisitions and developments have strengthened our portfolio, enabling us to meet the evolving needs of our customers and support Dubai’s vision as a global business hub. We made substantial strategic investments that significantly enhance our portfolio of premium commercial and industrial assets, underscoring our commitment to providing the best specialised ecosystems and fostering a dynamic environment for businesses to thrive.

Following consistent growth, the Group delivered another strong financial performance in 2024, posting an impressive increase in net profit to AED 1,228 million, a 14% increase compared to the previous year. This growth is supported by a rise in revenues to AED 2,402 million, reflecting a 11% increase year-on-year. Key drivers of this growth included high occupancy rates averaging 94% across all segments and an 5% increase in rental rates. Occupancy rates reached 99% at Dubai Design District (d3), 98% in storage and logistics facilities, and 97% in worker accommodation, while customer retention stood at an

Thanks to our robust capital management strategy, our financial foundation is exceptionally solid and perfectly poised to support our ambitious future endeavours.”

impressive 92%. These results underscore

the resilience of our diversified portfolio and the effectiveness of our future-focused investments and operational strategy.

It was also important for the Group to maintain a sharp focus on operational efficiencies during this period of significant investment, resulting in an EBITDA margin of 77%. Our debt-to-equity ratio of 0.8x provides flexibility for future growth opportunities.

Enhancing and Enriching the Business Portfolio

Throughout 2024, TECOM Group demonstrated its commitment to enriching and expanding its business portfolio. Our Grade A office spaces now exceed 22 million sq. ft., reinforcing our role as a strategic driver in Dubai’s business sector. Additionally, our land leasing portfolio now spans over 176 million sq. ft., solidifying our leading role in shaping the industrial landscape in Dubai and the UAE.

The launch of d3 Phase 2 and Innovation Hub Phase 3 at Dubai Internet City marks a significant milestone in our expansion efforts. These developments will address the growing demand for high-quality Grade A commercial assets tailored to customer specifications. Additionally, we welcomed

In 2024, we increased the number of LEEDEBITDA certified buildings in our portfolio to 43 and enhanced our electric vehicle (EV) charging AED 1,854M capacity with the addition of 17 new stations. +12% Growth YoY The Dubai Supreme Council of Energy recognised our efforts in sustainability with FFO the Exemplary Retrofit Project award. AED M 1,643 Our partnership with Emirates Red Crescent +14% Growth YoY

two major expansions from Amazon and TikTok at Innovation Hub Phase 2, which is nearing completion, and announced new developments including Dubai Science Park’s storage and logistics facilities. These projects further cement TECOM Group’s leadership in enhancing Dubai’s business proposition.

Our partnership with Emirates Red Crescent +14% Growth YoY continued in 2024 through The Good Store initiative, which provides a seamless Valuation donation platform during Ramadan and Eid al-Fitr. This important work underscores our AED 28B dedication to making a positive social impact +22% Growth YoY and encouraging charitable support for those most in need.

Our strategic investments are pivotal, solidifying our leadership in Commercial and Industrial sectors, which are critical to sustainable economic growth and securing a competitive advantage for the future.

In addition to expanding our portfolio, we continue to enhance the ease of doing business through strategic partnerships with organisations like VFS Global.

Our social initiatives are fundamental to our business philosophy. They aim to significantly impact the community and demonstrate our commitment to societal improvement and corporate responsibility.

Commitment to

Sustainability and ESG

The continued expansion of the Group’s assets and services is integral to its ability to We have also made significant strides in sustain growth – particularly within the context further reducing our carbon footprint by of rising customer demand in an increasingly implementing additional solar energy diverse non-oil economy. Sustainability projects across key business districts. remains a cornerstone of TECOM Group’s These projects align with the UAE’s vision growth strategy and investment mandate. for achieving net zero emissions by 2050 In 2024, we also reaffirmed our commitment and demonstrate our commitment to to environmental sustainability and social sustainable development. impact – key pillars of the Group’s strategy for responsible value creation.

TECOM Group PJSC Annual Report 2024

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ESG

Corporate Governance

Fireside chat with the CEO

We have concluded a series of strategically important and transformative investments that will secure sustainable ecosystem development, customer satisfaction, investor confidence and our ability to drive Dubai’s global vision.

Q How did TECOM Group foster innovation and support start-ups in 2024?

Q How did TECOM Group enhance its business districts to support Dubai’s vision as a global business hub?
TECOM Group enhanced its start-up ecosystem through strategic partnerships and the expansion of co-working spaces like D/Quarters. The Group also signed multiple MoUs with international entities to bolster the in5 incubator’s community while continuing to provide start-ups cutting-edge research and development facilities.

In 2024, TECOM Group expanded its portfolio of premium commercial and industrial assets and invested in strategic projects that align with Dubai’s vision. These efforts aim to create a dynamic environment where businesses can thrive, supporting the city’s role as a global business hub.

Q What initiatives did TECOM Group undertake Q What role did customer satisfaction play in to promote sustainability in 2024? TECOM Group’s strategy for 2024?

  - Customer satisfaction is central to TECOM Group’s strategy, evidenced by high retention rates during the year. The Group focuses on providing interconnected business ecosystems and services that meet the needs of modern businesses, ensuring customers remain at the heart of all our operations.

A TECOM Group is committed to sustainability and A is implementing solar energy projects across key
business districts, expanding its portfolio of LEEDcertified buildings, and expanding electric vehicle charging capacity. These initiatives support the UAE’s vision for net zero emissions by 2050, demonstrating our commitment to sustainable development.

Strategic Partnerships and Customer Growth

Looking at drivers of growth and value creation, our strategic partnerships have been pivotal in driving development across TECOM Group’s business districts. In 2024, we welcomed more than 900 new customers, including multinational and regional leaders across the commercial, industrial, and land sectors. Our customer retention rates remain high at 92%, reflecting satisfaction with our interconnected ecosystems and business services.

Our unwavering focus on creation, our strategic partnerships have customer satisfaction drives been pivotal in driving development across TECOM Group’s business districts. our operational strategies. In 2024, we welcomed more than 900 new We ensure that our offerings customers, including multinational and regional leaders across the commercial, not only meet but anticipate industrial, and land sectors. Our customer the needs of our customers, retention rates remain high at 92%, reflecting solidifying their loyalty satisfaction with our interconnected ecosystems and business services. and strengthening TECOM Group’s market position.” TECOM Group’s business districts are home to over 137,000 professionals who benefit from their strategic locations, which offer collaboration opportunities within high-quality work environments. As part of this success story, we signed multiple Memorandums of Understanding (MoUs) with international entities aimed at strengthening Dubai’s start-up ecosystem through our in5 incubator, which has supported more than 1,000 startups that have raised a total of AED 7.8 billion since its inception in 2013.

In closing, I appreciate our Board of Directors’ guidance, and thank our employees for their tireless efforts, dedication, and commitment.

These partnerships are crucial as we continue

fostering innovation while supporting Directors’ guidance, and thank our start-ups’ growth through sector-specific employees for their tireless efforts, infrastructure, facilities, and networking dedication, and commitment. opportunities. The success of these partnerships is evident in the increased I also extend my gratitude to shareholders demand for co-working spaces at D/ and customers who trust in TECOM Group’s Quarters. Capacity at D/Quarters’ spaces at vision. I am confident that the Group will Dubai Science Park doubled in 2024. This achieve outstanding results as we continue trend highlights the growing preference for on this journey of success. flexible workspaces that cater to modern businesses’ evolving needs.

Looking ahead: Goals for 2025

As we look forward to 2025, TECOM Group is poised to continue its trajectory of success. We are committed to further Abdulla Khalifa Belhoul advancing our business districts as the Chief Executive Officer destinations of choice for both current TECOM Group and potential customers.

Aligned with Dubai’s long-term economic objectives under Dubai Economic Agenda ‘D33’, we will continue to strengthen Dubai’s standing as a global business hub by fostering foreign investment and attracting talent in six vital sectors. Furthermore, we expect that the strategic acquisitions and developments that defined 2024 will unlock greater value for shareholders while supporting Dubai’s knowledge-based economy in the coming years.

TECOM Group PJSC Annual Report 2024

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ESG

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ESG

REASONS TO INVEST

Our Equity Story

TECOM Group’s equity story is firmly anchored in its operational excellence, a testament to its strong financial performance, a long history of sustainable growth, and pivotal role in advancing Dubai’s knowledge-based economy.

TECOM Group offers a compelling investment case through its strategic growth, financial strength, and commitment to delivering value to shareholders. The Group’s ability to attract global companies while maintaining high occupancy rates makes TECOM Group an attractive choice for investors seeking sustainable, long-term value and a strong return on investment.

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Market Position

and Leadership

TECOM Group has established itself as a market leader in Dubai’s commercial and industrial real estate sector by leveraging its strategic portfolio of 10 specialised business districts.

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Strategic Growth and Expansion

The Group significantly expanded its portfolio to meet the increasing demand for premium business and industrial spaces in 2024, investing a total of AED 2.7 billion.

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Consistently Strong Financial Performance

TECOM Group delivered strong financial results in 2024, with revenue growing by 11% and EBITDA increasing by 12%.

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Hub for Diversified and

Loyal Customers

TECOM Group plays a vital role in Dubai’s economic diversification through its 10 specialised business districts, which foster innovation across key sectors like technology, media, design, and manufacturing.

Sustained

Shareholder Value

Committed to delivering value to its shareholders, the Group distributed AED 800 million in dividends during year 2024.

Accountability, Transparency and Social Responsibility (Governance & ESG)

TECOM Group’s ESG framework is built around five key pillars: Economy, Community, People, Environment, and Governance & Risk.

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Market Position and Leadership

TECOM Group’s strategic positioning across 10 specialised business districts, each focused on high-growth sectors like technology and media, uniquely supports Dubai’s economic diversification.

By the end of 2024, commercial and industrial property occupancy reached 94%. This sustained demand underscores the Group’s ability to foster innovation and collaboration, solidifying its leadership in the commercial real estate sector.

Occupancy Rate – Commercial

Occupancy Rate – Commercial Occupancy Rate – and Industrial Properties Land Leases 94% 95%

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Hub for Diversified and Loyal Customers

As a premier business destination, TECOM Group attracts a diverse portfolio of global companies, ranging from multinationals to start-ups.

These companies leverage Dubai’s strategic location to access regional and international markets. Customer loyalty, driven by tailored solutions and world-class infrastructure, has reinforced Dubai’s reputation as a global hub for commerce and innovation.

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Strategic Growth and Expansion

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Dubai Design District Phase 2 (Render)
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In 2024, TECOM Group demonstrated its commitment to growth by investing AED 2.7 billion in development projects, acquisitions, and land purchases, with AED 1.2 billion allocated to new developments.

These strategic investments addressed the rising demand for premium spaces and ensured the Group’s portfolio remained aligned with evolving market needs and future opportunities.

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Sustained Shareholder Value

TECOM Group reinforced its commitment to delivering shareholder value by distributing AED 800 million in dividends for 2024 while continuing to invest in high-growth developments designed to generate sustainable returns.

The strong performance of its share price reflects investor confidence in the Group’s strategy, with robust total shareholder returns further underscoring its ability to consistently deliver value.

Total Shareholder Return 20%

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Share Price Trend (AED per share)
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3.15
2.67
2.75
2.25
IPO Price 2022 2023 2024
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Consistently Strong Financial Performance

TECOM Group achieved impressive financial results in 2024, with revenue growing by 11% and EBITDA increasing by 12%.

This was driven by high occupancy rates and operational efficiency that boosted profitability. This solid financial foundation has allowed the Group to maintain prudent leverage ratios while ensuring consistent cash flow from long-term leases to fund operations and future expansions.

Revenue (AED million) EBITDA (AED million) +36% +58% Growth since 2021 Growth since 2021

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2,402
1,854
2,173
1,654
1,973
1,766
1,347
1,171
’21 ’22 ’23 ’24 ’21 ’22 ’23 ’24
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Accountability, Transparency and Social Responsibility (Governance & ESG)

TECOM Group’s commitment to sustainability is embodied in its ESG framework, which is structured around five key pillars: Economy, Community, People, Environment, and Governance & Risk.

This framework aligns with global standards like the UN SDGs and the UAE’s Net Zero 2050 initiative, which was demonstrated by generating 14.2 GWh of clean energy in 2024 and achieving 43 LEED-certified buildings, covering 49% of the commercial portfolio’s leasable area. Additionally, the governance framework fosters trust through transparency, with oversight by the Board and Audit and Risk committees.

Clean Energy Generated

14.2 GWh

LEED-Certified Buildings 43

TECOM Group PJSC Annual Report 2024

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Providing Opportunity for Business Success and Sustained Economic Growth

The UAE achieved robust economic growth in 2024, driven by diversification efforts and strong performance in non-oil sectors. Rising domestic demand and foreign investment have positioned the UAE as a global business hub.

Dubai Real GDP 2024 AED 448B

Dubai Real GDP 2024 Growth 4.50%

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Real GDP Growth Rate (%)
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10%
6.6 6.9
5.1
5% 5.7 4.4 3.6 4.5
3.3
2.7 3.9 4.0 4.5
3.2
1.3 2.8 2.7 2.8
0%
-3.0
-5%
-5.0
-10%
-11.7
-15%
2019 2020 2021 2022 2023 2024E 2025E
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Dubai GDP Growth 2025[*] 4.50%

Purchasing Manager’s Index 55.5pts Dubai Population 3.8M

UAE GDP Growth 2025[*] 5.10%

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Global GDP Growth UAE GDP Growth Dubai GDP Growth
Source: IMF.
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* Forecast only
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Dubai and the UAE

Dubai’s GDP grew by 4.5% in 2024 and is projected to rise by 4.5% in 2025, up from 3.3% in 2023. This growth underscores Dubai’s resilience and ability to surpass pre-pandemic levels. Key drivers include real estate, trade, and tourism, supported by the D33 Economic Agenda, which aims to double the economy over the next decade through innovation and foreign investment.

Dubai launched its largest-ever budget for 2025-27, totalling AED 272 billion, focusing on social services, health, education, culture, and infrastructure. These strategies align with business-friendly policies that underpin economic success.

As economic activity intensifies, demand for infrastructure, real estate, and commercial space is expected to rise, reflecting broader confidence in the UAE’s long-term growth trajectory. With continued government support and a focus on innovation-driven sectors, the UAE can sustain its upward trajectory in 2025 and beyond.

Dubai Government Budget 2025-27 AED 272B

High demand and limited new supply continue to increase rental rates and occupancy levels in the commercial office sector.[[1]]

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High demand and limited
Dubai Population (million)
new supply continue to
increase rental rates and
occupancy levels in the
commercial office sector. [[1]] 3.8
3.7
3.6
In the 2025–2027 budget announcement, 3.5
H.E. Abdulrahman Saleh Al Saleh, Director
3.4 3.4
General of the Government of Dubai’s
Department of Finance (DOF), emphasised
the Dubai government’s commitment to
financial sustainability and competitiveness,
aligning with the Dubai Strategic Plan 2030 2019 2020 2021 2022 2023 2024
and Dubai Economic Agenda D33. [2]
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1 CBRE Real Estate Market Analysis Q3 2024 2 Government of Dubai Department of Finance

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Dubai and the UAE continued

Market Drivers

Reforms like long-term visas and 100% Government foreign ownership attract global talent and investment. The UAE’s leadership in digital Policies transformation in fintech, AI, and blockchain enhances its appeal as a hub for innovation.

Economic The UAE’s focus on industrialisation has Diversification been a significant growth driver within the industrial real estate sector throughout 2024. and The “Make it in Emirates” initiative aims to position the UAE as a global manufacturing Manufacturing

In the first 11 months of 2024, Dubai welcomed a record 16.8 million international visitors, an 9% increase from the previous year. Additionally, Dubai’s private higher education sector saw an 12% increase in

Population Growth

Initiatives such as Comprehensive Economic Partnership Agreements (CEPA) and Operation 300 Billion boost manufacturing output while reducing import reliance.

hub by encouraging local production across key sectors such as pharmaceuticals, food processing, and chemicals. This shift towards local manufacturing has increased demand for industrial land and warehousing facilities.

enrolments, with international students

making up one-third of the total. These trends highlight Dubai’s appeal as a destination for global talent, reinforcing its economic resilience and growth.

As we look into 2025 and beyond, sustained economic growth and favourable market conditions will likely continue driving demand across commercial offices and industrial real estate segments.

Commercial Real Estate

Office Supply

Office Supply Dubai’s commercial Dubai’s office market in 2024 continues to office sector thrives with be characterised by a significant shortage

of Grade A office space, which has been a high occupancy rates and key factor in sustaining high rental rates. The city’s prime business districts, such as Dubai rising rental rates due to

Internet City (DIC), are experiencing near-full limited new supply and occupancy, with limited new supply coming online. Developers are responding to this strong demand.[[3]] demand with several high-profile projects set

to add approximately 5.2m sq. ft. from 2025 Office Demand to 2027.

Office Average Rental Rate (AED per sq.ft)

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rising rental rates due to
limited new supply and
163
strong demand. [[3]]
Office Demand
Demand for office space in Dubai remains 130
robust in 2024, driven by the city’s strategic 119
115
location as a global business hub and its pro- 112 112
business policies. Key sectors contributing 2019 2020 2021 2022 2023 2024
to this demand include technology, financial
services, and professional services. Total
new office demand in H1 2024 increased
significantly compared to the same period in
Dubai Internet City
2023. This growth is largely attributed to an
influx of international companies relocating
or expanding their operations in Dubai.
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These developments aim to alleviate some of the pressure on the Grade A market. Still, demand is expected to remain high due to Dubai’s growing reputation as a global business hub. However, the overall supply of Grade A office space remains constrained, creating a landlord-favoured market, with tenants facing increasing competition for available spaces. As a result, many businesses are exploring alternative solutions such as build-to-suit (BTS) projects and flexible office spaces to meet their needs.

Occupancy levels across prime Grade A buildings have remained high throughout 2024, with some districts reporting near full capacity and long wait lists, reflecting strong interest from businesses in creative industries and financial services. This sustained demand is expected to continue as more companies seek high-quality office spaces in wellconnected locations.

Office Supply 2025-27 5.2M sq. ft.

3 CBRE Real Estate Market Analysis Q3 2024

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Commercial Real Estate continued

Office Rental Rates

Occupancy rates for commercial properties in Dubai have increased to 91%, with limited new supply expected in 2024.

The constrained supply of Grade A office spaces has put upward pressure on rental rates across key business districts in Dubai. In 2024, rates for prime office spaces have significantly increased due to high demand and limited availability. In business districts like Dubai Internet City (DIC) and d3, rental rates have also seen steady growth throughout 2024. This trend is expected to persist despite new developments as businesses seek high-quality office spaces that align with their operational needs.

Occupancy

91%

What this Means for TECOM Group

Dubai’s expanding population and tourism bolster its status as a global business, education, and leisure hub. With 17.15 million international visitors in 2023 and nearly 16.8 million tourists in 11 months of 2024, the city’s appeal and economic resilience are evident. This growth translates into upward pressure on rental rates across key business districts, benefiting TECOM Group. By expanding its portfolio with developments like d3 Phase 2, Innovation Hub Phase 3 and enhancing its existing assets, the Group is well-positioned to meet the increasing demand for premium office spaces in strategically connected locations.

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Dubai Knowledge Park
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Industrial Markets

Land Leasing This flexibility helps companies secure longThe surge in demand for land has resulted term leases and develop custom facilities. in a supply shortage in attractive, prime As central industrial areas face dwindling central locations in key industrial areas in land availability, investors are increasingly Dubai. The supply-side shortage of land turning to non-central zones with more inventory in these locations – and the growth favourable lease terms. Lease durations of industrial parks in secondary locations typically range from 1 to 45 years, with longer – is causing many companies to opt for contracts being common. non-central zones. The outlook for the land lease segment remains buoyant, with master developers looking to capitalise on the What this means for shortage of available land with higher lease TECOM Group rates and more stringent contracts. Dubai’s Commercial and Logistics Land Transport DI has a significant competitive Strategy 2030 aims to boost the sector’s advantage with its large land bank and economic contribution from AED 8.5 billion breadth of plot sizes. It will continue to AED 16.8 billion. capitalising on this, particularly as the

Dubai’s industrial market has continued its Government initiatives such as “Operation upward trajectory in 2024, driven by strong 300 Billion” and “Make it in Emirates” have demand for logistics and warehousing further fuelled this demand by promoting space. The UAE’s strategic position as local manufacturing and industrial activities. a global logistics hub, enhanced by These policies aim to boost domestic infrastructure projects like Etihad Rail and Al production capabilities while reducing Maktoum International Airport, has made reliance on imports, leading to increased it an attractive destination for companies occupancy levels across key industrial zones looking to establish or expand their industrial like DI. operations. The rapid growth of e-commerce and the proximity to these connectivity hubs have significantly increased demand for industrial assets, particularly in Dubai Industrial City (DI).

DI has a significant competitive advantage with its large land bank and breadth of plot sizes. It will continue capitalising on this, particularly as the city’s industrial land supply becomes more limited. Land lease rates in central locations have continued to rise as options become increasingly scarce. Customers have started shifting towards non-central locations with better lease terms and plot options, which DI continues to benefit from, particularly given its competitive rates.

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Dubai Industrial City
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No. of Land Lease Transactions in 2024

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+3,600
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Industrial Markets continued

imbalance has affected rental dynamics. Warehouse rental rates in Dubai rose by 42% between 2023 and 2024, while rental registrations in Dubai increased by 2.5% over the past year.

Warehousing

Warehouse Average Rental Rate (AED/sq.ft)

The warehousing sector in the UAE has seen remarkable growth in 2024, driven by strong demand from manufacturing, construction, and logistics. Enquiries for warehousing solutions surged by 185% from H1 2023 to H1 2024, reflecting heightened interest in industrial real estate. In response, 14 new warehousing facilities have been planned across the UAE.

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registrations in Dubai increased by 2.5%
over the past year.
51
The UAE’s industrial strategy is also crucial
in shaping the sector’s future. Dubai’s
Commercial and Logistics Land Transport
Strategy 2030, launched by the Roads
36
and Transport Authority, aims to boost the
31
logistics sector’s contribution to Dubai’s 30
economy from AED 8.5 billion to AED 16.8 26 27
billion by 2030. This initiative aligns with
Dubai’s vision to reinforce its position as 2019 2020 2021 2022 2023 2024
a global logistics hub.
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However, a persistent shortage of Grade A supply has forced some occupiers to consider alternatives such as build-to-suit solutions, self-development projects, or settling for lower-grade properties like Grade B or C spaces. This supply-demand

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Dubai Industrial City
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What this Means for

TECOM Group

With limited available supply and high occupancy rates for quality warehousing, rental rates continue to increase, particularly across onshore locations in Dubai.[4]

TECOM Group is uniquely positioned to capitalise on this trend through its strategically located assets in key industrial zones like DI. The rising rental rates for Grade A warehouses allow

the Group to enhance revenues while addressing the needs of industries such

as e-commerce and third-party logistics providers. TECOM Group can further solidify its role as a preferred partner for businesses seeking efficient logistics operations by offering tailored solutions like near-shoring facilities and scalable warehouse spaces.

Upcoming Market Projects in UAE Occupancy 14 98%

TECOM Occupancy 98%

CBRE Real Estate Market Analysis Q3 2024

Industrial Markets continued

Workers’ Accommodation

The workers’ accommodations sector may TECOM’s Worker hover around the optimal 80% occupancy Accommodation Occupancy What this means for rate by 2030. This stability indicates a consistent trajectory for the market driven 97% TECOM Group by economic growth and industry expansion across various industries. These dynamics catalyse an increased need for a skilled Overall Market Occupancy workforce, leading to a consistent demand in 2024 for worker accommodation. 74.5% development of infrastructure Upcoming Projects in UAE 18 industrial hubs. Worker Accommodation (monthly bed rate in AED) 343 278 265 265 267 193 2019 2020 2021 2022 2023 2024

The rapid growth of the transport, logistics, and e-commerce sectors in the UAE has increased the demand for worker accommodation, particularly in industrial zones like DI. With occupancy rates currently at 74.5%, this demand is driven by a growing workforce. Despite 18 projects being under construction – which are expected to raise occupancy to 80% by 2030 – landlords remain flexible on pricing, especially for large, established companies.

Occupancy rates at TECOM Group’s worker accommodation reached 97% by the end of 2024. This growth is supported by government policies aimed at improving labour conditions and encouraging employers to invest in better housing solutions for their workers. Additionally, the continued development of infrastructure projects like Etihad Rail is expected to drive further demand for worker accommodation facilities near major industrial hubs.

The UAE’s commitment to enhancing worker accommodations is supported by initiatives that ensure high standards of comfort and safety, setting a global benchmark and attracting investment interest.

Landlords in the market

are still flexible on pricing, especially for large requirements from wellestablished companies.[5]

5 CBRE Real Estate Market Analysis Q3 2024

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TECOM Group’s Vision for a Thriving Future

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Empowering Growth Our Value Chain Value Creation Value Creation
Through Strength, for Stakeholders Metrics for 2024
Scale, and Strategic
Resources
Building business
Driving High-Growth Shareholders Earnings Per Share
Industries districts and other Creating industry (EPS) Growth
infrastructure
ecosystems
Strategically
14%
Positioned Assets Customers
Integrated Services Customer Satisfaction
and Solutions Partnering
with regulatory Partners 87.1%
Customer-Centric Design
authorities for
EPRA Net Tangible
a regulatory
Fostering Assets (NTA) Growth
environment talent and Community
Enriching innovation 21%
Value Chains
Delivering a Employees Return on Equity (ROE)
full-service offering
Unlocking Opportunities 18.8%
Across Sectors
Community Events
Building a Thriving
Organised
Talent Ecosystem
Driving Sustainable Strategic Pillars 4
Development
High-Performing
Optimise Develop Build New Employee Retention
Core Business Differentiated Value Growth Sources 92%
TECOM Group PJSC Annual Report 2024 38
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TECOM Group designs dynamic, future-ready ecosystems that drive economic diversification and industry transformation. By leveraging our strengths, fostering innovation, and embedding sustainable practices, we deliver exceptional value to stakeholders while positioning ourselves as leaders in real estate and business districts.

Empowering Growth Enriching Strategic Pillars Value Creation for Through Strength, Scale, Value Chains Read more on page 44 Stakeholders and Strategic Resources Driving High-Growth Industries Unlocking Opportunities Across Sectors Optimise Core Business Our business model ensures that We develop and manage sector-focused We enable industries to integrate seamlessly We enhance asset performance every stakeholder benefits from ecosystems that attract regional and into Dubai’s economy by offering essential through strategic investments, TECOM’s success: global industry leaders. These hubs infrastructure, sector expertise, and strategic operational excellence, and foster collaboration, innovation, and resources that lower barriers to growth. customer-focused innovations. Shareholders long-term growth. Sustainable financial growth through a diversified portfolio of high- Strategically Positioned Assets Building a Thriving Talent Ecosystem Develop Differentiated Value performing assets. Our business districts are strategically Our districts attract top talent by fostering By integrating advanced located to provide seamless access to key innovation, collaboration, and a high-quality technologies and fostering Customers markets, international hubs, and supply lifestyle – empowering businesses to access partnerships, we create Infrastructure and ecosystems designed for chains – offering businesses an ideal the skills they need while contributing to ecosystems tailored to evolving growth and success in competitive markets. environment for growth and creativity. Dubai’s economic ecosystem. market needs. Partners Integrated Services and Solutions Driving Sustainable Development Build New Growth Sources Strategic collaborations with government Our comprehensive services cater to Sustainability is central to our operations. We invest in future-focused entities and private stakeholders aligned businesses of all sizes – from start-ups to By embedding ESG principles across industries and strategic with national priorities. multinationals – simplifying operations so all levels of our business, we address partnerships aligned with our partners can focus on their core objectives. global challenges like climate change and mission to foster economic Community resource efficiency while delivering longdiversification. Vibrant ecosystems promoting term value. entrepreneurship, social development, Customer-Centric Design and environmental protection. We prioritise understanding our tenants’ needs and crafting tailored solutions Employees that promote growth, collaboration, and A culture of inclusion, diversity, and innovation while building strong, trustprofessional development that empowers based relationships. our workforce to excel.

TECOM Group PJSC Annual Report 2024

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Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

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CASE STUDY
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Uphold excellence Revitalising business parks for long-term competitiveness

TECOM Group adopts a proactive and strategic approach to asset enhancement, ensuring its business parks remain competitive and aligned with evolving market demands.

How we are achieving it:

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Optimise Core Business
and Performance
Read more on page 44
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ESG
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Corporate Governance
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Financial Statements
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C E
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In response to increasing demand for Grade A assets, particularly from businesses emphasising ESG (Environmental, Social, and Governance) standards, TECOM has carried out an extensive retrofitting programme underpinned by the integration of sustainable technologies and LEED certifications.

Innovative Solution: Turning Challenges into Opportunities Recognising the situation as an opportunity for innovation, TECOM adopted a bold strategy by vacating one building entirely to repurpose it for a high-value tenant. This approach led to a long-term lease agreement with one of Dubai’s premier universities for Building 12. The university required tailored customisations to meet its specific needs, prompting the strategic relocation of existing tenants to other buildings within TECOM’s portfolio. This manoeuvre improved occupancy across different properties and invigorated the community dynamics within DIC.

Transforming our Assets

The structured approach to asset optimisation at TECOM Group focuses on continuous upgrades and renovations, delivering key benefits such as:

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Improved Enhanced Property Operational Extended Competitive
Tenant Satisfaction Value Efficiency Asset Lifespan Advantage
Enhances Boosts property Reduces utility Minimises Attracts high-quality
occupancy rates valuation consumption maintenance tenants, ensuring
and reduces tenant and elevates and operational frequency and costs. stable revenue
turnover. leasing rates. expenses. streams.
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Case Study:

Revitalisation of Dubai Internet City Assets

Outcome

The refurbishment initiatives yielded significant results:

Dubai Internet City is a leading TECOM Group implemented a technology hub known for attracting comprehensive refurbishment global industry leaders due to its strategic strategy targeting the affected location and premium infrastructure. buildings to address these challenges. However, in 2021, occupancy rates in Key initiatives included: buildings 10-14 dropped significantly as anchor tenants relocated or exited • Façade Renovation: due to ageing facilities. Tenant feedback Modernising the exterior to reflect highlighted the need for urgent upgrades contemporary architectural trends. in shared spaces such as lobbies, toilets, • Shared Facility Upgrades: elevators, and overall aesthetics. Enhancing common areas to meet

TECOM Group implemented a comprehensive refurbishment strategy targeting the affected buildings to address these challenges. Key initiatives included:

Overall occupancy across buildings 10-14 rose above 80%, with Building 12 achieving full occupancy through their prestigious tenants.
The upgrades are projected to increase occupancy rates to over 90% further, aligning lease rates with contemporary market standards.
The façade enhancements significantly improved the area’s aesthetic appeal, reinforcing DIC’s reputation as a premier destination for technology firms.
Shared Facility Upgrades: Enhancing common areas to meet evolving client expectations.

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TECOM Group PJSC Annual Report 2024
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TECOM Group PJSC Annual Report 2024

CASE STUDY – CONTINUED

CASE STUDY

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

C E

Nurture win-win relationships Collaboration and Partnership: Fuelling Dubai’s Industrial Evolution

Dubai Industrial City (DI), a key business district within TECOM Group, has been at the forefront of the UAE’s industrial transformation for over two decades.

to drive innovation, sustainability, and economic growth. These collaborations have not only strengthened the UAE’s standing as a global manufacturing hub but also aligned with national initiatives such as Operation 300bn, Make it in the Emirates, and the Dubai Economic Agenda ‘D33’.

As a cornerstone of Dubai’s industrial ecosystem, DI has leveraged strategic partnerships

How we are achieving it:

Partnering with regulatory authorities for a regulatory environment Read more on page 38

Active strategic Growth in managed partnerships industrial land leases 10+ +35% over last 4 years

20 years of pioneering industrial excellence

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Driving Innovation Through Growth and green Emirates, encouraging local production and
Strategic Collaborations export-oriented manufacturing. Through
DI’s partnership with Siemens exemplifies solutions go hand in hand – these collaborations, DI aims to significantly
its focus on innovation. The Memorandum enhance the industrial sector’s GDP
building an industrial future
of Understanding (MoU) signed in 2024 enables DI customers to benefit that is both profitable and contribution to AED 300 billion by 2031.
from Siemens’ Industrial Technology positive for our planet. Our Industrial Future
Transformation Index (ITTI) Assessments. Dubai Industrial City stands as a testament
These assessments provide valuable Empowering Economic Growth to the power of collaboration in driving
insights into digitalisation, sustainability, DI plays a pivotal role in supporting industrial excellence. Its strategic partnerships
and operational efficiencies, assisting the UAE’s economic diversification have not only bolstered Dubai’s reputation as
manufacturers in adopting Industry agenda by attracting investments and a global manufacturing hub but also created
4.0 technologies. fostering entrepreneurship. The Emirates a sustainable framework for long-term
Development Bank (EDB) has committed economic growth. By fostering innovation,
The collaboration also includes access AED 1 billion to support emerging industrial promoting sustainability, and empowering
to Siemens’ Green Lean Digital Factory companies within DI, providing crucial businesses, DI continues to shape the
Roadmaps and training programmes aimed financial backing for startups and SMEs. future of industry in the UAE – proving that
at enhancing workforce capabilities. This collaboration is indeed the key to unlocking
initiative emphasises DI’s role in equipping Additionally, partnerships with MoIAT limitless possibilities.
businesses with the necessary tools to promote initiatives like Make it in the
remain competitive in a rapidly evolving
industrial landscape.
Growth in leased land area (million sq.ft)
Advancing Sustainability Goals
Sustainability is a core pillar of DI’s vision.
Its partnership with the Ministry of Climate
Change and Environment (MOCCAE)
emphasises decarbonisation within industrial 168
operations. Initiatives such as tree-planting 154
campaigns and the adoption of renewable
energy have positioned DI as a leader in
sustainable industrial development. 133
125 124 122
2019 2020 2021 2022 2023 2024
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Collaboration is the foundation of industrial progress – together, we can achieve far more than we can alone.

Dubai Industrial City stands as a testament Empowering Economic Growth to the power of collaboration in driving DI plays a pivotal role in supporting industrial excellence. Its strategic partnerships the UAE’s economic diversification have not only bolstered Dubai’s reputation as agenda by attracting investments and a global manufacturing hub but also created fostering entrepreneurship. The Emirates a sustainable framework for long-term Development Bank (EDB) has committed economic growth. By fostering innovation, AED 1 billion to support emerging industrial promoting sustainability, and empowering companies within DI, providing crucial businesses, DI continues to shape the financial backing for startups and SMEs. future of industry in the UAE – proving that collaboration is indeed the key to unlocking limitless possibilities.

Building an Ecosystem of Excellence

Central to DI’s success is its commitment to fostering public-private partnerships. Collaborations with entities like the Ministry of Industry and Advanced Technology (MoIAT), Emirates Development Bank (EDB), and Siemens have created a solid foundation for industrial growth. These partnerships provide DI’s customers with access to cutting-edge technologies, financial support, and sustainable practices.

and Siemens have created a solid foundation The collaboration also includes access for industrial growth. These partnerships to Siemens’ Green Lean Digital Factory provide DI’s customers with access to Roadmaps and training programmes aimed cutting-edge technologies, financial support, at enhancing workforce capabilities. This and sustainable practices. initiative emphasises DI’s role in equipping businesses with the necessary tools to remain competitive in a rapidly evolving Our thriving industrial industrial landscape. ecosystem, built on collaboration and strategic Advancing Sustainability Goals Sustainability is a core pillar of DI’s vision. partnerships, drives Its partnership with the Ministry of Climate growth as a single-window Change and Environment (MOCCAE) emphasises decarbonisation within industrial gateway for sustainable operations. Initiatives such as tree-planting development. campaigns and the adoption of renewable

TECOM Group PJSC Annual Report 2024

OUR STRATEGY – CONTINUED

OUR STRATEGY

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report ESG Corporate Governance

We Create Leading Ecosystems that Drive Innovation and Success

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Optimise
Core Business
and Performance
Develop a Build New
Differentiated Sources of
Value Growth
Proposition
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Our strategy is focused on delivering an unmatched customer experience and fostering vibrant, thriving communities. By launching innovative products and expanding through strategic acquisitions, we achieved exceptional occupancy and industry-leading retention and strengthened our market leadership — establishing a robust foundation for sustained growth.”

Haif Zamzam

SVP Strategy & Marketing

Develop a Differentiated Value Proposition

Build New Sources of Growth

Optimise Core Business and Performance

We aim to deliver long-term value by offering best-in-class infrastructure, flexible solutions, and exceptional customer service across a range of industries. Our Grade A spaces, built-to-suit facilities, and integrated ecosystems optimise operational efficiency and support business growth. We continuously assess and enhance our assets to ensure maximum performance and value while leveraging synergies across the TECOM Group ecosystem. This holistic approach positions us as the preferred partner for businesses, fostering innovation and driving success.

TECOM Group is focused on identifying and unlocking new sources of growth across both industrial and commercial real estate sectors. We are actively pursuing opportunities in high-growth industry segments, such as technology, advanced manufacturing, and sustainable industries, to diversify and expand our portfolio. By targeting emerging markets and evolving customer needs, we are ensuring that our real estate offerings remain relevant and competitive in a dynamic market.

At TECOM Group, optimising core business and performance is key to long-term growth and operational excellence. We focus on strengthening customer relationships by delivering tailored solutions that meet evolving needs and fostering lasting partnerships. In parallel, we prioritise prudent cost, cash flow, and capital management to ensure financial stability and maximise asset value, driving profitability and maintaining leadership across sectors.

Objectives

Retain and strengthen relationships with customers
Deliver a compelling value proposition
Drive new opportunities in high-growth industry segments
Focus on prudent cost, cashflow and capital management
Deliver best-in-class customer experiences
Identify improvements across the Group-wide portfolio of assets
Develop new product offerings in emerging office asset classes
Deliver ongoing commercial built-to-suit (BTS) and infrastructure programme
Maximise synergies across the TECOM Group ecosystem
Expand and challenge existing commercial business models
Review and refine pricing to align with market conditions
Support the development of Dubai’s economy and strategic sectors

2025 and Beyond

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TECOM Group’s future strategy focuses on operational TECOM Group will enhance its value proposition TECOM Group will focus on embedding recent
excellence and financial resilience to ensure sustainable by prioritising customer satisfaction through acquisitions while continuing to explore new
growth. We will deepen customer engagement, product improvements, process enhancements, and opportunities to meet and prudently anticipate future
offer tailored solutions, and adapt pricing to market proactive support, including facilitating regulatory demand. By integrating newly acquired assets and
dynamics. We are committed to ongoing investments and government interactions. We will strengthen targeting high-growth sectors such as industrial and
in asset enhancements and upgrades to meet evolving community engagement by fostering collaboration advanced industries, TECOM Group aims to strengthen
customer needs. In 2024, the Group has invested through events and activations, unlocking synergies its portfolio and align with evolving market needs. This
CAPEX of AED 2.7 billion in strategic projects to support across the group. Sustainability remains integral, with a strategic approach ensures the Group remains agile,
these initiatives. By prioritising cost management and focus on eco-friendly practices and expanding LEED- competitive, and well-positioned to support Dubai’s
expanding BTS and infrastructure programs, we aim to certified buildings to drive responsible growth. economic growth and diversification.
solidify our position as a market leader.
2024 Accomplishments 2024 Accomplishments 2024 Accomplishments
94Occupancy% 92Retention% +8Number of Customers% [+11] Number of Workforce [%] AEDOffice Acquisitions 1.1B AEDNew Developments 1.2B
+705,000 sq. ft. +796,000 sq. ft.
12% AED 210M +39% Hosted Leading Industry Events
EBITDA Growth Invested in Asset Increase in LEED Dubai Fashion Week, AED 0.4B
Enhancement Certified Buildings Dubai Design Week,
Advance Health, and Land Acquisitions
launched the first edition +13.9 million sq. ft.
of Design Next Total land leasing portfolio
reached 177 million sq. ft.
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TECOM Group PJSC Annual Report 2024

BUSINESS OVERVIEW – CONTINUED

Financial Statements

Strategic Report

ESG

Corporate Governance

ESG Corporate Governance

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BUSINESS OVERVIEW
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Uniting Integrated Communities for Shared Success

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Our Business Segments
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94%
Commercial Industrial
occupancy
51% 15%
across all
Typical Lease term 1-5 Years Typical Lease term 1-5 Years
business
Office Warehouses
segments.
Retail Worker Accommodation TECOM Group’s consistently high
occupancy rates, averaging 94% across all
business segments in 2024, underscore
the strong demand for its integrated
business districts. With flagship districts like
Land Services & Others Dubai Design District (d3) achieving 99%
occupancy, this success reflects the Group’s
ability to provide tailored infrastructure and
services that meet evolving business needs.
22%
12%
Typical Lease term 30-50 Years
Land Leasing axs
Others
TECOM Group PJSC Annual Report 2024 46
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These robust occupancy levels not only highlight customer trust but also reinforce TECOM’s leadership in Dubai’s dynamic commercial real estate market.

Additionally, the Group’s robust financial performance in 2024 is a testament to the synergy within its diverse business segments, highlighting a commitment to fostering interconnected ecosystems. By prioritising diversification and strategic management, TECOM Group continues to position Dubai as a catalyst for shared success and sustained growth.

Commercial Industrial Revenue YOY Revenue Growth Revenue YOY Revenue Growth AED 1,218M 8% AED 357M 17% EBITDA Occupancy EBITDA Occupancy AED 805M 90% AED 244M 98% Land Services & Others Revenue YOY Revenue Growth Revenue YOY Revenue Growth AED 532M 6% AED 295M 23% EBITDA Occupancy EBITDA Corporate & Government Services AED 577M 95% AED 229M +200

TECOM Group PJSC Annual Report 2024

COMMERCIAL LEASING – CONTINUED

COMMERCIAL LEASING

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Commercial Leasing

Elevating Office Spaces Through Innovative Ecosystems

Commercial Leasing continues to be a cornerstone of TECOM Group’s growth and success in 2024. As the owner of one of the largest commercial real estate portfolios in Dubai, our achievements are closely tied to the Emirate’s transformation into a global hub for innovation and business excellence.

Ammar Al Malik

Executive Vice-President Commercial Leasing

In 2024, we expanded our portfolio with strategic acquisitions and developments, reinforcing our leadership in the commercial real estate market. By offering cutting-edge spaces that foster creativity, collaboration, and innovation, we continue to attract leading global organisations that contribute to Dubai’s knowledge-based economy and longterm economic vitality.”

TECOM Group’s commercial leasing segment experienced robust growth in 2024 across all business districts. The strategy has succeeded in enriching communities across the Group’s ecosystem, providing access to world-class incubators, innovation hubs, research and development centres, business services and digital platforms. This approach has supported multinationals, startups, entrepreneurs, and freelancers throughout 2024, as is reflected in the Group’s financial performance and tenant retention rates.

Customer Loyalty (in years)

36% >10 years 14% <2 years 17%

2-5 years

33% 5-10 years

TECOM Group PJSC Annual Report 2024

COMMERCIAL LEASING – CONTINUED

Financial Statements

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Strategic Report

ESG

Corporate Governance

Financial Performance Overview

TECOM Group’s Commercial Leasing segment delivered strong financial results in 2024, building on the momentum from the previous year. Revenue for the segment saw an 8% increase, driven by higher occupancy rates across key business districts and favourable rental adjustments.

The addition of 871,549 square feet of new leases at competitive leasing rates further contributed to revenue growth, reinforcing the Group’s financial position. The competitive rental rates currently seen in the market were further supported by the sustained demand for Grade A office spaces and specialised facilities across TECOM’s portfolio.

EBITDA for Commercial Leasing in 2024 reached AED 805 million – an 5.6% improvement compared to the previous year. EBITDA margins for Commercial Leasing stood at 66% by year-end. Commercial occupancy rates also remained steady throughout the year.

Highlights

Gross Leasable Area Occupancy Retention (million sq. ft.) 10.6M 90% 91%

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10.6 85.4% 89.0% 90.4% 91.7% 92.7% 90.6%
9.5 9.5
’22 ’23 ’24 ’22 ’23 ’24 ’22 ’23 ’24
Commercial Buildings WALT
153 2.5
years
Annual Passing Rent Estimated Rental Value
(AED) (AED)
M M
1,310 1,400
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Valuation (AED) 15.3B 26% growth

Our Locations

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1 2 3 4 5
Six Vital Knowledge-based
1. Dubai Internet City Economic Sectors
2. Dubai Media City
Manufacturing
3. Dubai Knowledge Park
3 4. Dubai Design District Technology
2 1
5. Dubai Science Park
Media
6. Dubai Studio City
4 Education
7. Dubai Production City
7 5 8. Dubai International Academic City Science
9. Dubai Outsource City
Design
6 10. Dubai Industrial City
10
8 9
6 7 8 9 10
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TECOM Group PJSC Annual Report 2024

COMMERCIAL LEASING – CONTINUED

Financial Statements

Strategic Report

ESG

Corporate Governance

ESG

Corporate Governance

Key Commercial Leasing Milestones

Technology

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Acquisition (AED)

1.1B

Dubai Internet City (DIC), celebrating its 25th anniversary in 2024, remains the region’s leading technology district.

The completion of Phase Two of the Innovation Hub and the acquisition of three Grade A commercial buildings for AED 1.1 billion added significant office space.

Dubai Internet City (DIC) is fundamental to TECOM Group’s success in driving entrepreneurship and innovation. It continues to be a powerful catalyst for the evolution of next-generation technologies, fostering an environment where startups and innovation centres can thrive.

Design

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At Dubai Design District (d3) occupancy rates neared full capacity in 2024, with brands such as LVMH and Kering helping to attract new tenants.

The district co-hosted Dubai Fashion Week, enhancing its global status. To meet growing demand, TECOM Group announced Phase 2 of d3’s development, which includes six new Grade-A office buildings.

Additionally, Dubai Design District (d3) and Isola Design Group launched a forwardthinking exhibition focusing on the circular economy. Titled Design Next, the new exhibition is the first joint initiative between d3 and the innovative Isola Design Group, expanding Dubai Design Week’s 10thanniversary programming with a glimpse into the future of sustainable design thinking.

Media

Dubai Media City (DMC) continued to be the region’s leading media hub in 2024.

A key highlight was DMC’s collaboration with La Liga and the UAE Ministry of Economy to protect digital intellectual property. DMC also hosted the Global Media Congress, which connected key industry players. The need for boutique office spaces has continued to increase as media professionals sought flexible environments with cuttingedge infrastructure.

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Dubai Media City
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Science

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Dubai Science Park
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Dubai Science Park (DSP) is rapidly expanding its science district with cutting-edge R&D centres powered by global leaders like Himalaya, Firmenich, and Jotun, driving the UAE’s vision to advance data-driven healthcare and wellness sectors.

Committed to fostering a dynamic

ecosystem for smart healthcare, DSP strengthened its focus on R&D excellence in 2024 through enhanced infrastructure and services. To meet the growing demand for Grade A R&D facilities, DSP is on track to complete the expansion of its storage and logistics capacity by 200,000 square feet by Q1 2025, further supporting professionals and companies in life sciences, energy, and environmental fields. Additionally, TECOM Group extended its D/Quarters co-working spaces within DSP, addressing the rising need for flexible and collaborative work environments that fuel innovation and scientific progress across the region.

TECOM Group PJSC Annual Report 2024

COMMERCIAL LEASING – CONTINUED

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Key Commercial Leasing Milestones continued

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Education

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The Group’s Education Cluster, which includes Dubai Knowledge Park (DKP) and Dubai International Academic City (DIAC), continued to reinforce its position as an education hub in 2024.

In the year of its 20th anniversary, DKP achieved a significant milestone by attracting an unprecedented number of international students, marking a notable increase in its global appeal. The 2023-24 academic year saw a 43% growth in the number of students from Europe, underscoring DKP’s success in becoming a preferred destination for higher education among European learners.

Additionally, institutions such as the University of Birmingham and Middlesex University spearheaded programs in green hydrogen technology and fintech, while DIAC has attracted prestigious universities from France, Germany, and Australia. DKP has also enhanced its role as a centre for vocational excellence, hosting leaders like Le Wagon Coding School. Supporting a diverse community of over 33,500 learners from 170 countries, the sector has continued to foster opportunities for internships and research, bridging academia and industry.

Growth in European Students

at Dubai Knowledge Park 43%

Incubation Centres

The Group’s incubation centres, led by in5, achieved significant milestones in 2024, reinforcing their role in driving entrepreneurship and innovation.

By the close of 2024, start-ups incubated within in5 surpassed AED 7.8 billion in total funding since its inception, reflecting a remarkable 163% growth over the previous year. This achievement underscores Dubai’s supportive proinnovation framework and TECOM Group’s commitment to fostering entrepreneurial excellence. In5 has now supported over 1,000 start-ups across the technology, media, design, and science sectors, offering access to mentorship, advisory services, and funding networks.

In5 Science celebrated its first anniversary in June 2024, providing a platform for over 35 future-focused science start-ups in collaboration with Dubai Science Park. Additionally, in5 Media recorded an 5% growth in active start-ups during 2024, driven by initiatives to bolster the creative economy. These accomplishments highlight TECOM Group’s strategy to empower innovators and align with Dubai’s Economic Agenda ‘D33,’ solidifying its position as a global hub for innovation and entrepreneurship.

New Partners

The Group’s dedication to nurturing a multi-faceted and highly-targeted industry ecosystem has been further underscored by new strategic agreements with international partners in 2024.

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These included South Korea’s National IT Dubai Internet City Industry Promotion Agency (NIPA), which launched the Korea IT Cooperation Centre UAE (KICC UAE) in Dubai Internet City. NIPA’s centre now acts as a gateway that connects Korean entrepreneurs with their UAE counterparts – further leveraging Dubai’s strategic location and unique DIC ecosystem.

Other notable new entrants to the Commercial Leasing business include Kodak while existing tenants such as Salesforce, TikTok, and Amazon have expanded their presence. These developments reflect the Group’s commitment to enhancing its technological and creative capabilities and fostering a diverse and dynamic business environment. By improving community development initiatives and supporting the startup ecosystem, the Group is poised to sustain its leadership position in commercial leasing.

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The Next Chapter

Commercial Leasing will continue to drive growth through the enhancement and monetisation of existing assets, supported by new developments.

Strong demand in key sectors such as technology, media, design, science and education will sustain the group’s ability to expand its operations while delivering shareholder value.

Furthermore, TECOM Group will maintain its focus on expanding its portfolio through strategic acquisitions while enhancing its existing assets to adapt to evolving tenant needs – with a strong emphasis on sustainability and community development. The Group’s operations will also be buoyed by the dynamics of a strong economy, rising population and economic diversification in Dubai, leaving it well-positioned to maintain its leadership in Dubai’s commercial real estate sector.

TECOM Group PJSC Annual Report 2024

INDUSTRIAL AND LAND LEASING – CONTINUED

INDUSTRIAL AND LAND LEASING

Financial Statements

Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

ESG

Industrial and Land Leasing

Transforming Dubai’s industrial landscape

This has been a standout year for TECOM Group’s industrial business, driven by significant growth across land leasing, worker accommodation, and warehousing. With occupancy rates in industrial assets reaching 98%, the segment has benefited from strong demand for long-term leases, alongside the addition of 13.9 million square feet of land to the leasing portfolio.

Saud Alshawareb

Executive Vice-President Industrial Leasing

Customer Loyalty (in years)

22% >10 years

19% 5-10 years

30% <2 years

29% 2-5 years

2024 has delivered a performance that has further reinforced TECOM’s position as the region’s leading hub for manufacturing and logistics.”

Market Alignment

Dubai’s industrial and land leasing market has experienced remarkable growth in 2024, with TECOM Group playing a pivotal role in shaping the sector. As a key contributor to Dubai’s industrial ecosystem, Dubai Industrial City (DI) has fostered partnerships with government and private entities, including collaborations with Siemens and DEWA to enhance infrastructure and innovation. These initiatives align with Dubai’s D33 Agenda and Operation 300Bn, driving economic diversification and industrial growth.

As TECOM Group’s industrial assets expanded in 2024, it demonstrated its critical leadership position in the UAE’s industrial and logistics markets. By focusing on strategic acquisitions, customer-driven solutions, and cuttingedge infrastructure, the Group will continue to shape the future of industrial real estate in Dubai.

The Group has also worked to strengthen and enrich its relationships with key stakeholders in 2024, notably the government and private sector participants. These relationships contribute to the Group’s ability to meet a growing economy’s immediate and near-term demands. DI will remain the premier choice for companies looking to expand or establish a regional presence within this leadership context, solidifying its position as a leading industrial and logistics hub in the UAE and globally.

TECOM Group PJSC Annual Report 2024

INDUSTRIAL AND LAND LEASING – CONTINUED

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Financial Performance

The Industrial and Land Leasing segment strongly supported TECOM Group’s 2024 financial results.

The segment’s positive financial performance has been driven by robust demand for industrial spaces and strategic operational efficiencies. Revenue for the segment reached AED 889 million in 2024, up from AED 806 million in 2023, contributing 37% to the Group’s total revenue. High occupancy rates, particularly in warehouses and worker accommodations, supported this growth, which reached 98% and 97%, respectively.

TECOM Group’s Industrial and Land Leasing segment maintained a strong EBITDA margin of 92%, reflecting effective cost management and consistent rent escalations. Client retention improved by 6%, underscoring the Group’s focus on fostering long-term relationships through tailored leasing solutions and proactive customer engagement.

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Highlights

Warehouses Gross Leasable Area Retention (million sq. ft.) 1,140 11.6 94%

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Estimated Rental
11.5 11.5 11.6 92.8% 88.3% 94.3% Value (AED)
368M
Operational Factories in
Dubai Industrial City
’22 ’23 ’24 ’22 ’23 ’24 +350
Occupancy
Annual Passing
Rent (AED)
98%
391M
98.1%
86.5% 88.7%
Valuation
(AED)
3.3B
Valuation Growth
’22 ’23 ’24 14%
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Leasing Performance

The Industrial Leasing segment achieved record performance in 2024 and an impressive year-end average occupancy rate of 98% across all industrial leasing spaces, including warehouses and worker accommodations.

This high occupancy rate underscores the robust demand for industrial space within TECOM Group’s portfolio.

Strong customer support and retention efforts contributed to over 94% lease renewals across our industrial properties, further strengthening long-term relationships with key partners. With most of our leases secured through long-term agreements, TECOM effectively mitigates risk, maintaining stability even in fluctuating market conditions. Additionally, our network of business partners in Industrial Leasing expanded to over 1,100, up from 1,000 the previous year, highlighting the growing demand for our offerings. The number of operational factories within our land leasing portfolio also grew from 306 at the end of 2023 to over 350 by the close of 2024, with further expansion anticipated in 2025.

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Highlights

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No. of Plots
Gross Leasable Area
(million sq. ft.) 846
177
Estimated Rental
176.6
163.7 163.7 Value (AED)
625M
WALT
’22 ’23 ’24 32.4
years
Annual Passing
Occupancy
Rent (AED)
535M
95%
94.3% 94.9%
81.5% Valuation
(AED)
9.4B
Valuation Growth
’22 ’23 ’24
19%
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TECOM Group PJSC Annual Report 2024

INDUSTRIAL AND LAND LEASING – CONTINUED

Financial Statements

Strategic Report

Strategic Report ESG

ESG

Corporate Governance

Portfolio Expansion

In 2024, TECOM Group made significant strides in expanding its land leasing portfolio.

The Group added 13.9 million square feet of new industrial land inventory in DI, strategically located near key logistics hubs such as Jebel Ali Port and Dubai World Central.

By year-end 2024, 80% of this new inventory had already been leased under long-term contracts, reflecting strong demand from local and international manufacturers. This expansion brings TECOM’s total managed land leasing portfolio to 177 million square feet, attracting interest from high-demand sectors such as manufacturing, logistics, food and beverage packaging, and pharmaceuticals. It reinforces TECOM’s position as a leading player in Dubai’s industrial real estate market during a year when DI celebrated its 20th anniversary.

Square feet of land acquired for Dubai Industrial City 13.9M

Environmental, Social, and Governance (ESG)

TECOM Group is committed to supporting the decarbonisation of the industrial sector.

In 2024, DUBATT was inaugurated as the UAE’s first battery recycling facility, contributing to the circular economy by generating leads for new battery manufacturing. Additionally, Enviroserve continues to reduce carbon emissions while contributing to GDP growth through efficient circular economy practices. Worker welfare remains a priority, with award-winning accommodations offering holistic living environments.

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Dubai Industrial City
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Innovation for the 4th Industrial Revolution

TECOM Group continued to support Dubai’s evolution as an ‘Advanced 4th Industrial Revolution Lighthouse’ in 2024.

Unilever’s automated facilities bolstered the city’s cuttingedge AI and robotics capabilities, and a new Siemens partnership has furthered the Group’s commitment to industrial innovation, unleashing Siemens’ expertise in digital twins, AI, and edge computing. The advancement of these next-generation technologies will further accelerate digital transformation and improve operational efficiencies across multiple industry sectors, reinforcing DI’s position as a hub for industrial technology.

Future Outlook

As TECOM Group looks toward 2025 and beyond, it focuses on capitalising on the strong market demand for its Industrial and Land Leasing portfolio.

The Group will expand its portfolio to meet the needs of a growing industrial sector, with an anticipated total of 380-400 operational factories across its industrial zones in 2025.

The industrial segment is also poised for continued expansion. The Group anticipates that investors will begin construction on over 19 million square feet of leased land, addressing general and specialised industrial requirements. Furthermore, plans are in place to acquire additional plots in DI, reflecting a proactive strategy to expand the industrial warehousing segment and ensuring it remains wellpositioned to meet future industry demands.

TECOM Group will also seek to diversify its offerings further, focusing on accommodating a wide range of industrial requirements, including catering to build-to-suit clients who need customised, specialised facilities. Additionally, the Group will strengthen its partnerships with the government and with private stakeholders to enhance its service offerings and strengthen the overall business environment within the Group’s industrial zones.

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Dubai Industrial City
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TECOM Group PJSC Annual Report 2024

BUSINESS SERVICES – CONTINUED

BUSINESS SERVICES

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Business Services

Enabling Services for Business Success

The Business Services segment is a fundamental enabler of success across TECOM Group’s entire ecosystem of business districts. By integrating the digital capabilities of our axs platform with new strategic partnerships and tailored support services, we have equipped businesses with essential tools needed to grow and thrive in Dubai’s dynamic economy.

Ahmad Al Mheiri

Senior Vice President Business Services

Number of Transactions

160

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136
112
2020 2021 2022
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182

169

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2023 2024
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Our unwavering commitment to excellence empowers us to continuously innovate and refine our services, ensuring businesses of all sizes can operate seamlessly and achieve their goals.”

In 2024, TECOM Group’s Business Services supported over 11,900 customers and 137,000 professionals, enabling them to operate effectively within its thriving ecosystems by providing access to over 200 digital services. These comprehensive offerings have significantly elevated customer satisfaction by streamlining operations, simplifying processes, and fostering a seamless experience that enhances ease of doing business.

The axs platform underwent a series of transformative enhancements, further cementing its position as a comprehensive, one-stop solution for all businessrelated services within TECOM Group’s ecosystem.

These advancements were designed to streamline operations and elevate the user experience, reflecting the Group’s commitment to innovation and customer-centricity. Among the key upgrades was the introduction of e-signatures for lease renewals, enabling faster, more efficient contract management processes. Additionally, the platform implemented real-time automation for service request updates, ensuring customers had immediate access to the status of their inquiries.

To further improve customer engagement, communication channels were enhanced to deliver seamless and responsive interactions. These upgrades not only simplified access to essential services but also significantly improved the overall user experience for the Group’s diverse community of businesses. By integrating these innovations, TECOM Group has demonstrated its dedication to adapting to evolving market dynamics and addressing the changing needs of its customers. This approach reinforces the Group’s role as a leader in business enablement and digital transformation across its portfolio.

TECOM Group PJSC Annual Report 2024

BUSINESS SERVICES – CONTINUED

Financial Statements

Strategic Report

ESG

Corporate Governance

ESG

Corporate Governance

Financial Performance Overview

TECOM Group’s Business Services segment recorded a strong financial performance in 2024, exceeding its revenue targets and delivering record-high revenue of AED 295 million – the highest in the Group’s history.

This was driven by increased demand for visa services and licensing solutions. The segment’s end-of-year financial position was also enhanced by operational efficiencies such as smarter digital onboarding processes and the seamless integration of newly acquired assets into the Group’s ecosystem.

Highlights axs revenue Services Automation % Number of Freelancers +10% +2% +10%

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88% 91% 92% 4,342 4,769
154
138 140 3,486
’22 ’23 ’24 ’22 ’23 ’24 ’22 ’23 ’24
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TECOM Group maintained high customer satisfaction levels through industry-leading, high-value support services while achieving a record financial performance.

The Startup Ecosystem

D/Quarters

Building on its successful launch in 2022 and expansion into Dubai Science Park in 2023, D/Quarters continued to expand its footprint and services in 2024, with co-working spaces at Dubai Internet City, Dubai Media City, and Dubai Science Park achieving near-full occupancy. The introduction of enhanced digital features through the D/Quarters app allowed users to book spaces, manage memberships, and access parking services seamlessly. The year also saw D/ Quarters host over 50 industry-focused events, fostering collaboration and innovation among its vibrant community of entrepreneurs, freelancers, and businesses.

GoFreelance

GoFreelance also saw significant progress in 2024, issuing over 4,700 freelance permits – up from 4,300 in 2023. This strong performance has been partly driven by the government’s streamlining of visa processes, the addition of new sectors under the freelance visa programme and the introduction of customised packages for freelancers. Freelancers now have access to co-working spaces and professional networking events, further strengthening the platform’s appeal and reinforcing its commitment to growing Dubai’s freelance economy.

Increase in Freelance Permits 2024 +427

D/Quarters Occupancy 89%

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D/Quarters revenue
0%
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45.21 44.73 44.63
’22 ’23 ’24
GoFreelance revenue
+6%
16
15
12
’22 ’23 ’24
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GoFreelance revenue

Business Services helped to further increase TECOM Group’s global appeal in 2024, driving revenues and reinforcing the Group’s status as a global operational hub.

Other Services and

Partnerships

Advertising and Venue Management Services (AVMS) achieved key milestones by expanding its portfolio of out-of-home (OOH) advertising locations across the Group’s business districts.

AVMS also launched an online booking platform that has simplified client access to advertising spaces and event venues. In 2024, AVMS managed over 200 events, including high-profile conferences and exhibitions that attracted international participants.

TECOM Group expanded its service portfolio through strategic collaborations with entities like Dubai Customs and Sharjah authorities to ease import and export activities for businesses inside the Group’s ecosystem. Additionally, a new partnership with VFS now provides our customers access to services such as authentication, notarisation, legalisation, and translation of essential documents on the axs platform.

Industry Recognition

TECOM Group’s Business Services segment achieved significant recognition at the 2024 Stevie Awards, underscoring its leadership in fostering innovative and businessfriendly ecosystems. The axs platform was a standout performer, winning two Gold Stevie Awards:

Award for Innovation in Customer Service Management, Planning & Practice

TECOM Group’s axs platform was recognised for unifying over 200 government services, streamlining business operations, and delivering exceptional customer service through innovative digital solutions.

Award for Innovation in Technology Development The axs platform was celebrated for its groundbreaking technological advancements, which have revolutionised service delivery and enhanced operational efficiency across TECOM Group’s ecosystem.

In addition to these Gold awards, TECOM Group secured five Silver Stevie Awards and two Bronze Stevie Awards across various categories. These accolades highlight the Group’s commitment to operational excellence, customercentric innovation, and its role as a leader in driving digital transformation across the region.

TECOM Group PJSC Annual Report 2024

PROPERTY REVIEW – CONTINUED

Financial Statements

Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

ESG

PROPERTY REVIEW

A Year of Exceptional Growth in Our Portfolio

In 2024, TECOM Group solidified its position as a leader in property investment, achieving a substantial increase in asset valuation through strategic acquisitions, value-accretive development projects, and enhanced organic performance.

This progress underscores our commitment to maximising shareholder value while expanding and strengthening our industry-leading portfolio across business districts.

Market Dynamics

The investment landscape in Dubai showcased remarkable resilience in 2024, buoyed by a strong economic resurgence and sustained demand for premium Grade A properties. The tightening of capitalisation rates across various asset classes highlights the strong market appetite for strategically located, high-quality properties. TECOM Group’s assets are at the forefront of this trend, reinforcing Dubai’s stature as a leading global investment destination. This environment attracts a mix of regional and international investors, drawn by the promise of stable returns and substantial growth prospects.

Valuation Overview

According to CBRE’s valuation report, as of 31 December 2024, TECOM Group’s Investment Property (IP) portfolio was valued at AED 28.0 billion. This marks a robust increase of 22.1% (AED 5.1 billion) compared to the previous year. On a like-for-like basis, excluding acquisitions and developments, the core asset growth was 11.0% (AED 2.5 billion).

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22% 11%
Overall growth Like for like growth
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Investment Property Valuation Valuation Contribution
(AED billion)
28.0
3%
22.9
21.3
30%
19.1
54%
12%
’21 ’22 ’23 ’24
Available land Industrial leasing
Commercial leasing Land leasing
66
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Investment Property Valuation (AED billion)
1.9 0.6 28.0
2.5
22.9
FY23 LFL Growth Acquisitions Projects FY24
Projects under development valuation increase
Portfolio Equivalent Yield (%)
8.6%
8%
7.8%
7.7% 7.7%
2021 Q4 2022 Q1 (IPO) 2022 Q4 2023 Q4 2024 Q4
Source: CBRE valuation for the year end 2021, 2022, 2023 & 2024; JLL valuation dated 31 March 2022.
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Organic Growth

The core asset growth of 11.0% was mainly fuelled by an increase in the value of the Group’s operating assets, representing two-thirds of the total portfolio. The successful onboarding of new customers, the expansion of existing customers, notable rental rate improvements, and operational efficiencies propelled this uplift. TECOM Group’s deliberate focus on providing adaptable, state-of-the-art business environments perfectly attuned to market trends also contributed to the positive valuation outcomes.

Expansion through Acquisitions and Development

The Group’s recent acquisitions and ongoing development projects, valued at AED 2.7 billion, illustrate TECOM Group’s continued commitment to portfolio expansion, adding breadth and depth to its property holdings. This strategic expansion and valuation uplift in 2024 underscore the Group’s leading position in the real estate sector, driven by proactive management and forward-looking investment strategies.

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Dubai Internet City
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TECOM Group PJSC Annual Report 2024

PROPERTY REVIEW – CONTINUED

Financial Statements

ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Asset Acquisition and Development

TECOM Group expanded its portfolio in 2024 through strategic acquisitions and developments, bolstering its presence in key commercial hubs. These investments enhance market position with high-quality assets aligned to long-term growth goals. Ongoing projects are progressing as planned, prioritising innovative, sustainable, and flexible spaces to meet tenant needs. This approach underscores TECOM Group’s commitment to portfolio diversification and a robust growth pipeline, ensuring sustained success.

Total Investment 2024

AED 2.7B

Asset Acquisitions AED 1.5B

New Developments

AED 1.2B

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Development projects
Land acquisition
Operational assets acquisition
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Launch of Innovation Hub Phase 3 (sq. ft.) 167,000 Launch of d3 Phase 2 Acquisition of two operational to develop six Grade A Grade A office buildings office buildings (sq. ft.) (sq. ft.) 334,000 629,000 Acquisition of Office Acquisition of land Park comprising five bank spanning interconnected blocks (sq. ft.) (sq. ft.) 13.9M 370,761 Port of Jebel Ali Burj Burj Khalifa Al Arab 6 Dubai International Airport 1 2 3 4

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5
Al Maktoum
International
Airport
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1 DPG HQ
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2 Injaz Building
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3 Office Park 4 Innovation Hub Phase 3
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Location Dubai Internet City Location Dubai Internet City Location Dubai Internet City Location Dubai Internet City Category Grade A Category Grade A Category Grade A Category Grade A GLA 198,093 sq. ft. GLA 136,115 sq. ft. GLA 370,761 sq. ft. GLA 167,118 sq. ft. Occupancy 87% Occupancy 67% Occupancy 88% No. of 2 (at acquisition) (at acquisition) (at acquisition) buildings This premium office properties in Acquired for AED 164 million, this Acquired for AED 720 million, Office Park With an estimated capital expenditure of Dubai Internet City, acquired for AED distinguished office property in Dubai is strategically located in the region’s AED 340 million, Innovation Hub Phase 256 million, illustrates excellence in Internet City exemplifies modern most prominent tech hub, Dubai Internet 3 in Dubai Internet City addresses the workspace design. Strategically located workspace innovation. The low-rise City. This L-shaped complex features growing demand for premium Grade A near vibrant communities such as building offers excellent accessibility five interconnected blocks and offers a office spaces. The project is scheduled Marina, Jumeirah, and JLT, this low-rise through major highways and arterial modern, mixed-use facility with offices, for completion in mid-2027 and offers building offers seamless connectivity roads, ensuring seamless connectivity. retail spaces, and upscale restaurants. customisable office solutions tailored to via Al Sufouh and Sheikh Zayed Roads. With over 320 parking spaces, nearby Recently refurbished, it boasts an 88% diverse business needs. It builds on the It also ensures tenant convenience with retail outlets, diverse dining options, and occupancy rate, housing global brands success of Phase 2, fully pre-leased ahead over 340 parking spaces, nearby F&B a large public car park, it is designed to like Coca-Cola, Uber, Red Hat, and of its early-2025 delivery, and Phase 1, outlets, retail amenities, and a large public meet the needs of its tenants efficiently. Ticketmaster. With stunning views of which remains fully occupied by global car park. Positioned within a thriving Strategically located within TECOM’s Palm Jumeirah, over 800 parking spaces, tech leaders. Strategically positioned ecosystem alongside Dubai Knowledge thriving central business districts, the and lease terms exceeding two years, with excellent connectivity, vibrant Park, Dubai Media City, and In5, the property is home to prestigious tenants the property ensures steady income amenities, and a dynamic ecosystem, the property houses elite tenants like Amazon, such as Hult Business School, Sprinklr, and and convenience. Significant potential Innovation Hub enhances collaboration, Ferrari, and Lukoil, fostering a dynamic Medtronic. This dynamic environment exists to optimise rental rates and nurtures talent, and drives technological environment for business growth and fosters collaboration, business growth, occupancy, promising robust returns while advancement, reinforcing Dubai’s status as talent development. and talent development, making it an maintaining its position as a premium a global innovation leader. ideal hub for innovation. business destination.

TECOM Group PJSC Annual Report 2024

PROPERTY REVIEW – CONTINUED

Financial Statements

ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

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5 DI Land Plots Acquisition 6 D3 Phase 2
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Location Dubai Industrial City Location Dubai Design District No. of plots 73 Category Grade A GLA 13,875,962 sq. ft. GFA 629,000 sq. ft. Confirmed leads 75% No. of 6 (at acquisition) buildings

The Group has strategically expanded TECOM Group is advancing its leadership its land lease portfolio with the AED in premium workspaces with an expected 410 million acquisition of prime, wellinvestment of more than AED 800 million connected industrial plots, addressing the in developing six Grade A office buildings growing demand for industrial leasing. in Phase 2 of Dubai Design District This move supports government-driven (d3). Designed to meet the growing initiatives like “Operation 300 Billion” demand from global creative companies, and “Make it in Emirates,” fostering the project features sustainable office industrial growth and driving demand spaces with breathtaking views of the for mixed-use developments. The newly Dubai skyline and Burj Khalifa. Beyond acquired plots are expected to enhance workspaces, it includes sports facilities, the Group’s financial performance in the community areas, fine dining, ample short to medium term. Long-term lease parking, and an extended promenade contracts associated with these assets will to enrich surrounding residential areas. ensure revenue stability, strengthening Scheduled for completion by H1 2028, the Group’s position as a leader in the this transformative development will industrial leasing market while supporting enhance Dubai’s creative industries, attract national economic goals. top talent, and reinforce the city’s standing as a global cultural hub.

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Dubai Internet City – Revitalisation of Assets
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TECOM Group’s portfolio is meticulously crafted from premium, long-lasting assets, consistently maintained to meet the highest industry standards, ensuring lasting value and performance.

The Group consistently provides its properties with top operating and technical specifications through rigorous monitoring and a disciplined approach to refurbishment and maintenance. These efforts are vital for long-term success by improving tenant satisfaction, enhancing property value, and increasing occupancy while minimising churn. This approach also optimises operational efficiency, reduces costs, extends asset lifespan, and provides a competitive edge by attracting high-quality tenants, ensuring stable revenue and occupancy.

As of 31 December 2024, TECOM Group had invested AED 210 million in capital expenditures, balancing valueenhancing initiatives with essential upkeep. This strategic allocation safeguards asset quality while supporting sustainable growth. Moreover, the Group allocates a substantial amount annually to ensure we align with ESG standards and support our sustainability objectives.

AED 210M

Invested in Asset Upgrades

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Maintenance and Enhancement
Capex (AED million) Asset Enhancement Cycle
210
119
104 Preventative
Maintenance
’22 ’23 ’24
Maintenance and Enhancement
Capex (%)
Internal & External
Assessment
68%
32%
Asset Maintenance
Value Added Enhancement
Renovations & Modernisation Tenant
Engagement
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TECOM Group PJSC Annual Report 2024

CFO’S STATEMENT – CONTINUED

CFO’S STATEMENT

Financial Statements

Strategic Report

Strategic Report ESG Corporate Governance

ESG

Corporate Governance

A transformative year of organic and inorganic growth

Through organic and inorganic growth, the company has yielded significant results, with major deals positively enhancing our financial performance in 2024. We anticipate that this strategic momentum will continue into 2025, driving further revenue growth through rising demand and the inherent value of the Group’s infrastructure and business services ecosystem.

Financial Performance and Balance Sheet

In 2024, TECOM Group’s revenue reached AED 2,402 million, surpassing our projections. The impressive 11% year-onyear (YoY) growth was driven by higher rental rates, increased occupancy across the portfolio, and strategic acquisitions that bolstered our asset base. By 31 December 2024, the Group reported an 12% YoY growth in EBITDA, reaching AED 1,854 million, with a strong margin of 77%.

This performance reflects our ongoing efforts to optimise cost efficiency while maintaining high service standards. We anticipate maintaining these robust margins into 2025 as we continue to leverage both organic and inorganic growth opportunities. Our net profit for 2024 saw impressive growth, rising by 14% to AED 1,228 million – this exceptional outcome was driven by enhanced operational efficiency, supported by strategic initiatives, and reinforced by sound financial stewardship, ensuring longterm stability and value creation.

2024 has been a transformative year for TECOM Group, marked by strong cash generation, stable financing of key strategic initiatives, and sustained growth across all business segments.”

TECOM Group’s financial strength is further evidenced by its robust liquidity position. By year-end, funds from operations stood at AED 1,643 million, complemented by recurring free cash flow of AED 1,409 million. Our conservative balance sheet approach and effective multi-year hedging strategies have provided stability amid global rate uncertainties.

market. These yields are supported by stable occupancy levels and long-term leasing agreements secured throughout the year.

EPRA Earnings and Cost Efficiency

Our conservative balance sheet approach Our focus on cost efficiency has been a and effective multi-year hedging strategies key driver behind TECOM Group’s strong have provided stability amid global rate EBITDA margin in 2024. We implemented uncertainties. several cost-optimisation initiatives that have streamlined operations without The Group maintained a healthy cash compromising service quality. This has and bank balance of AED 1,017 million allowed us to maintain healthy margins as of year-end, reflecting prudent cash despite inflationary pressures. EPRA management practices. Additionally, TECOM earnings for 2024 stood at AED 1,638 Group has access to AED 2,350 million in million, reflecting a YoY increase of 9%. This unutilised credit facilities, ensuring significant metric underscores our ability to generate financial flexibility to support operational sustainable earnings from our core real needs and strategic growth opportunities. estate operations while delivering value This strong liquidity profile underscores the to shareholders. Group’s resilience and readiness to capitalise on future opportunities while safeguarding Investor Engagement against potential market fluctuations.

Investor Engagement and Shareholder Value

In 2024, we intensified our engagement Property Valuation and Yields with investors and analysts through regular Throughout 2024, we continued to enhance meetings and transparent communication the value of our property portfolio. The about our strategic direction. These efforts Group’s assets underwent revaluation have contributed to an improvement in during the year, resulting in a total TECOM Group’s share price over the year, as property valuation of AED 28 billion as investor confidence in our growth strategy of 31 December 2024. This uplift reflects strengthened. We remain committed to both market appreciation and our strategic fostering transparent communication with investments in high-demand sectors. Yields the investment community as we continue across our portfolio remained strong, with to expand our shareholder base and deliver average yields of 7.7%, reaffirming the long-term value. attractiveness of our assets in a competitive

Financial Strategy and Alignment

Financial Strategy and Alignment We will also continue to optimise TECOM Combined with strong cash generation, Group’s financial performance through TECOM Group’s revolving credit facility prudent management, a conservative risk enabled us to allocate resources efficiently appetite and the provision of exceptional towards new asset acquisitions in 2024. services to our customers. These have enriched our portfolio, increased property values, and strengthened tenant engagement and ecosystem integration. Looking ahead, we are well-positioned to manage future growth opportunities effectively while maintaining financial resilience. Our strategy aligns closely with Michael Wunderbaldinger Dubai’s economy and supports national Chief Financial Officer GDP growth across key sectors. TECOM Group

As Dubai continues to attract foreign direct investment (FDI), TECOM Group will deliver value to shareholders by accelerating revenue growth, enhancing the city’s knowledge economy, improving the ease of doing business for tenants, and maintaining EBITDA Margin high tenant retention rates through 77% superior service delivery, we anticipate that the Group’s investments will continue to 1% Growth YoY drive revenue growth and deliver strong financial returns.

Loan to Value Ratio

15%

2.7% Growth YoY

Return on Equity

19% 1.3% Growth YoY

TECOM Group PJSC Annual Report 2024

FINANCIAL REVIEW – CONTINUED

FINANCIAL REVIEW

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Delivering Long-Term Shareholder Value

Revenue by segments

2024 Highlights

In 2024, TECOM Group produced outstanding financial results, significantly boosting both Revenue and EBITDA compared to the previous year and exceeding yearly targets. This achievement can be attributed to targeted investments, asset performance, prudent cost management and a strong dedication to customer satisfaction.

Income Statement

Income Statement
AED million	2024	2023	Variance	Variance %
Revenue	2,402	2,173	229	11%
EBITDA	1,854	1,654	200	12%
EBITDA Margin	77%	76%	1%
Net Profit	1,228	1,078	150	14%
Net Profit Margin	51%	50%	1%

Our impressive financial outcomes highlight the effective execution of our fiscal strategy, showcasing our resilience and ability to adapt to a dynamic economic landscape.”

Cash Flow Margin Land Leasing 76% The Land Leasing sector’s revenue grew 1% Growth YoY by 6% to AED 532 million in 2024, up from AED 502 million. Increased leasing activities and a favourable economic Net Profit Margin environment for industrial land demand drove this growth. The segment 51% capitalised on these conditions to 1% Growth YoY sustain its growth trajectory. Return on Assets Year-on-Year Performance 8% AED 31M 31MM 1% Growth YoY 6% Growth YoY

Commercial Leasing

In 2024, the Commercial Real Estate Leasing sector saw revenues rise by AED 90 million, an 8% increase from AED 1,128 million to AED 1,218 million. Key contributors included the technology sector through acquisitions and the science industry with enhanced lease rates. The media and education sectors also boosted success by acquiring new customers and expanding the existing customer base.

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success by acquiring new customers and
Revenue Performance
Revenue by segment (AED million) Revenue by segment (%) expanding the existing customer base.
TECOM Group demonstrated exceptional Year-on-Year Performance Year-on-Year Performance
growth, achieving a 11% increase in revenue 1,218
year-on-year. This success was significantly 1,128 AED 90M AED 31M 31MM
driven by the performance of Dubai Internet 1,047 12% 8% Growth YoY 6% Growth YoY
City, which undertook strategic acquisitions,
and Dubai Industrial City, which achieved
substantial growth in land lease occupancy.
22% Industrial Leasing Services and Others
51%
The Group’s commitment to enhancing
Industrial Leasing revenues increased Revenue from other services grew by
customer satisfaction led to many business
by AED 53 million to AED 357 million 23%, reaching AED 295 million for
partners expanding their leases, resulting 532
502 in 2024, marking a 17% growth. Higher the year. This growth was mainly due
in improved occupancy rates and higher 436
15% occupancy rates and lease prices to increased demand for co-working
leasing revenues. This also positively impacted axs revenues, with a notable rise in the number of visas issued. Additionally, 274 304 357 216 240 295 in warehouse facilities and worker accommodation sectors fuelled spaces and stable contributions from established visa services.
this performance.
the co-working product D/Quarters
exceeded expectations by delivering Year-on-Year Performance Year-on-Year Performance
strong revenue growth. ’22 ’23 ’24 ’22 ’23 ’24 ’22 ’23 ’24 ’22 ’23 ’24 Commercial Industrial
Land Lease Services & Others AED 53M AED 56M
Commercial Industrial Land lease Services & Others
17% Growth YoY 23% Growth YoY
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The 12% improvement in our EBITDA reflects our commitment to operational excellence. Through strategic financial management, we achieved a 13% decrease in overall debt expenses, further solidifying our financial health. In addition, we sustained robust cash flow, providing us the agility to reinvest in key business areas and consider strategic opportunities.

Our impressive financial outcomes highlight the effective execution of our fiscal strategy, showcasing our resilience and ability to adapt to a dynamic economic landscape. Looking ahead, we are dedicated to continuing this growth trend while providing consistent value to our stakeholders.

TECOM Group PJSC Annual Report 2024

FINANCIAL REVIEW – CONTINUED

Financial Statements

ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

37%
37%
8%
18%
FM
Utilities
Visa Services
Others
Costs
2024
AED m
2023
AED m
Variance
AED m
Variance %
Direct Costs
(440)
(389)
(51)
(13%)
OperatingExpenses
(246)
(187)
(59)
(32%)
Total
(686)
(576)
(110)
(19%)
Direct Costs
In 2024, direct costs, including facilities
management, utilities, and visa services,
rose by AED 51 million. This increase was
largely attributed to the acquisition of
additional assets, higher occupancy levels,
and expanded visa services driven by the
introduction of new products with varied
cost structures. Aligned with TECOM’s
ESG framework, the Group reinforced its
dedication to sustainability by investing in
solar energy projects. Further details on
TECOM’s ESG initiatives and achievements
can be found on page 106.
Operating Expenses (OPEX)
Operating expenses grew by AED 59 million
during 2024. This rise was primarily due to the
reversal of bad debt provisions recorded in
the prior year and higher administrative costs
resulting from an expanding customer base.
Net finance costs
The group maintained its weighted average
cost of debt at 4% during 2024. Net finance
costs decreased by AED 23 million to
AED 158 million, aided by lower margins on
refinanced loans and gains from derivative
instruments.
Direct Cost Components (%)

EPRA
The Group delivered impressive growth in
its EPRA performance indicators for 2024.
EPRA Earnings increased by 9% to AED 1,638
million, while Earnings per Share advanced to
AED 0.33. EPRA net assets rose significantly
to AED 20,719 million, marking a growth of
AED 3,559 million compared to the prior year.
The net initial yield remained stable at 6.7%
in 2024.
These results highlight the Group’s robust
financial position and operational effectiveness
within the real estate market. The rise in EPRA
Earnings reflects strong underlying operational
performance, excluding impacts from
depreciation and valuation changes. Similarly,
the growth in EPRA NTA signifies the Group’s
success in generating value from its existing
portfolio and newly acquired properties. The
upward trajectory of EPRA NTA showcases
efficient asset management and strategic
decision-making.
In summary, the strong performance across
these metrics underscores the Group’s ability
to maintain a well-optimised real estate
portfolio, align with industry standards, and
reinforce its competitive position in the market.

These results highlight the Group’s robust financial position and operational effectiveness within the real estate market. The rise in EPRA Earnings reflects strong underlying operational performance, excluding impacts from depreciation and valuation changes. Similarly, the growth in EPRA NTA signifies the Group’s success in generating value from its existing portfolio and newly acquired properties. The upward trajectory of EPRA NTA showcases efficient asset management and strategic decision-making.

In summary, the strong performance across these metrics underscores the Group’s ability to maintain a well-optimised real estate portfolio, align with industry standards, and reinforce its competitive position in the market.

EPRA NTA Movement (AED million)

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2,721 -800
20,719
1,638
17,160
Dec ’23 EPRA Earnings BS movements Dividend Dec ’24
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Balance sheet movements mainly arise due to the use of IP fair values for EPRA reporting vs. the Balance sheet cost model.

EPRA NTA Pre-Dividend (AED per Share)

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4.30
3.55
3.23
’22 ’23 ’24
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2024 Highlights

Balance Sheet 2024 AED m 2023 AED m 2022 AED m Investment Properties 13,820 11,865 11,874 Cash & Bank 1,017 1,535 1,261 Total Assets 16,291 14,814 14,555 Debt 5,213 4,352 4,342 Equity(IFRS net Assets) 6,708 6,329 5,968 Net Debt 4,196 2,817 3,081 Balance Sheet Despite dividend distributions, the Group’s balance sheet remained strong in 2024, with equity increasing by 6% to AED 6,708 million. This solid foundation offers stability for operational demands and future expansion plans. During the year, AED 850 million in debt was drawn to fund strategic acquisitions, totalling AED 1.5 billion, reflecting a loan-to-value ratio of 55% for Despite this borrowing, the Group maintained conservative leverage ratios, staying well within debt covenant limits. Asset growth of 10% reflects effective capital allocation and strategic investments, contributing to overall value creation. Liquidity remained robust, with AED 1,017 million in cash and bank balances alongside an unutilised debt facility of AED 2,350 million, ensuring readiness for operational and strategic opportunities. Addiill hlh ki il ii	4,461 4,735 3,367 ’22 ’23 ’24 Available Funds (AED million) AED3,367M Net Debt (AED million)	2024 Highlights
		Equity AED6,708M 6% Growth
		Total Assets AED16,291M 10% Growth
		Finance Costs-Net AED158M 13% Decrease

Balance Sheet Despite this borrowing, the Group maintained Despite dividend distributions, the Group’s conservative leverage ratios, staying well balance sheet remained strong in 2024, within debt covenant limits. Asset growth of with equity increasing by 6% to AED 10% reflects effective capital allocation and 6,708 million. This solid foundation offers strategic investments, contributing to overall stability for operational demands and future value creation. Liquidity remained robust, expansion plans. During the year, AED 850 with AED 1,017 million in cash and bank million in debt was drawn to fund strategic balances alongside an unutilised debt facility acquisitions, totalling AED 1.5 billion, of AED 2,350 million, ensuring readiness reflecting a loan-to-value ratio of 55% for for operational and strategic opportunities. these new assets. Additionally, a healthy working capital position reinforced efficient day-to-day management, enabling the Group to meet short-term obligations effectively.

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Return on Capital Employed
4,196 12%
3,081
2,817
’22 ’23 ’24
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Debt/Equity 0.8x Debt/Total Assets 32%

The balance sheet shows a financially sound company strategically managing its resources to foster stability, growth, and sustained shareholder value.

TECOM Group PJSC Annual Report 2024

FINANCIAL REVIEW – CONTINUED

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Cash Flow

Operating cash flows reached AED 1,822 million in 2024, reflecting a 12% increase compared to the previous year. This growth highlights the Group’s effective working capital management, particularly through streamlined receivables processes.

Capital expenditures for the year amounted to AED 2,288 million, marking a significant increase of 5.3 times over 2023. These investments were directed toward major acquisitions and the initiation of key projects such as Phase 3 of the Innovation Hub and Phase 2 of d3. Additionally, ongoing upgrades and refurbishment initiatives ensured the enhancement of existing assets.

On the financing side, an AED 850 million debt drawdown supported a portion of this substantial capital expenditure. The Group adhered to its financial commitments by paying interest costs as per loan agreements and distributing dividends in accordance with its established dividend policy.

Re-investment Ratio

79%

Costs 2024 AED m 2023 AED m 2022 AED m OperatingCashflow 1,822 1,631 1,504 InvestingCashflow (1,724) (477) (1,043) FinancingCashflow (129) (761) (953) Net Cashflow (32) 393 (492) Cash & Cash Equivalents 638 670 277 Funds from Operations (FFO) The Group’s Funds from Operations (FFO) exhibited robust growth in 2024, increasing by 14% to reach AED 1,643 million. This highlights the Group’s strong ability to generate cash from its core operations. With an EBITDA-to-FFO conversion rate of 89%, the Group demonstrated efficient cash flow conversion from operational activities. This upward trend underscores the Group’s capacity to meet shareholder expectations while supporting future growth initiatives. As a critical financial indicator, FFO continues to reflect the strength and income-generating potential of the Group’s real estate portfolio. Recurring Free Cash Flow (RFCF) The recurring free cash flow showcased consistent resilience, growing 18% in 2024 with a 76% conversion from EBITDA. This performance underscores the Group’s capability to generate positive cash flows from its core operations, providing a solid foundation for strategic investments and shareholder returns through dividends. This financial stability highlights the Group’s ability to balance operational needs with opportunities for reinvestment and value creation.	1,643 1,447 1,198 ’22 ’23 ’24 89% 87% 89% % Age of EBITDA Funds from Operations (FFO) (AED million)
	72% 72% 76% Recurring Free Cash Flow (RFCF) (AED million)

Costs
2024
AED m
2023
AED m
2022
AED m
OperatingCashflow
1,822
1,631
1,504
InvestingCashflow
(1,724)
(477)
(1,043)
FinancingCashflow
(129)
(761)
(953)
Net Cashflow
(32)
393
(492)
Cash & Cash Equivalents
638
670
277
Funds from Operations (FFO)
The Group’s Funds from Operations (FFO)
exhibited robust growth in 2024, increasing
by 14% to reach AED 1,643 million. This
highlights the Group’s strong ability to
generate cash from its core operations.
With an EBITDA-to-FFO conversion rate of
89%, the Group demonstrated efficient cash
flow conversion from operational activities.
This upward trend underscores the Group’s
capacity to meet shareholder expectations
while supporting future growth initiatives. As
a critical financial indicator, FFO continues to
reflect the strength and income-generating
potential of the Group’s real estate portfolio.
Recurring Free Cash Flow (RFCF)
The recurring free cash flow showcased
consistent resilience, growing 18% in
2024 with a 76% conversion from EBITDA.
This performance underscores the Group’s
capability to generate positive cash flows
from its core operations, providing a solid
foundation for strategic investments and
shareholder returns through dividends.
This financial stability highlights the Group’s
ability to balance operational needs
with opportunities for reinvestment and
value creation.

1,643
1,447
1,198
’22
’23
’24
89%
87%
89%
% Age of EBITDA
Funds from Operations (FFO)
(AED million)

72%
72%
76%
Recurring Free Cash Flow (RFCF)
(AED million)

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76%
72% 72%
1,409
1,189
964
’22 ’23 ’24
% Age of EBITDA
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Cash Return on Assets DSCR 12% 10.3x

Capital Management and Funding

Dividends

Funding for acquisitions and developments Dividends announced during the year was effectively

managed, balancing debt and equity while Announced in 2022 as part of the IPO

adhering to a conservative loan-to-value ratio. prospectus, the Group committed Strategic cash management during periods to semi-annual dividend payments of lower capital expenditures also allowed the totalling AED 800 million per year. Group to generate significant interest income, contributing to an exceptionally low average cost of debt.

Since listing, this commitment has been consistently upheld, and the Group remains steadfast in its dedication to maintaining annual dividend payouts of AED 800 million in alignment with its established dividend policy, business model, and strategic objectives.

The Group has excelled in capital management by adopting strategies that optimise its financial framework. This includes maintaining strong leverage ratios, ensuring robust interest coverage, and achieving a notable

cost of debt. Supported by robust profitability and strong cash flows, the Group boasts a dividend coverage ratio of 176% for 2024, based on Weighted average Cost of Debt FFO Dividend Coverage recurring free cash flow and planned annual dividends. This solid financial foundation 4% 205% ensures the Group’s ability to meet shareholder expectations while maintaining Leverage Ratio RFCF Dividend Coverage its focus on long-term value creation. 2.3x 176%

reduction in finance costs.

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14% 14%
15%
12%
5,836
4,735
4,746 4,461 3,367
9%
5,213
4,342 4,352
3,934 3,965
’20 ’21 ’22 ’23 ’24
Borrowing Cash & Undrawn Facilities % Age of EBITDA
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H2-2022 2023 2024 H1-2025
400 400 400 400 400
200 200
Nov 22 Apr 23 Aug 23 Apr 24 Sep 24 Apr 25 Sep 25
Paid Planned
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TECOM Group PJSC Annual Report 2024

KEY PERFORMANCE INDICATORS – CONTINUED

KEY PERFORMANCE INDICATORS

Corporate Governance Financial Statements

Financial Statements

Strategic Report

Strategic Report ESG Corporate Governance

ESG

Monitoring our progress and performance

TECOM Group establishes Revenue (in AED) EBITDA (in AED) Funds from Operations (FFO) (in AED) clear strategic objectives and M M M 2,402 1,854 1,643 regularly monitors progress 1,973 2,173 2,402 1,654 1,854 1,643 to assess the effectiveness 1,347 1,447 1,198 of its initiatives, the value ’22 ’23 ’24 ’22 ’23 ’24 ’22 ’23 ’24 generated, and overall strategic advancement. Key Why We Use this Indicator Why We Use this Indicator Why We Use this Indicator Performance Indicators (KPIs) Revenue serves as a core indicator of TECOM EBITDA serves as a cornerstone metric for evaluating Funds from Operations (FFO) is a critical metric play a vital role in this process, Group’s operational and financial performance, providing a clear measure of the Group’s ability to TECOM Group’s operational and financial performance. By focusing on earnings before for TECOM Group, reflecting its ability to maintain healthy operational cash flows. This measure guiding the efficient allocation drive profitability and generate robust cash flows. This focus on revenue aligns with TECOM’s strategy interest, taxes, depreciation, and amortisation, this measure provides a clear picture of the Group’s ensures the Group can meet its capital expenditure (capex) obligations to uphold the high standards of internal resources and of leveraging its integrated business districts to core profitability and operational efficiency, making of its assets, aligning with tenant expectations while create sustainable value, ensuring the effective it an essential driver of cash flow generation and also delivering consistent dividend payouts to shaping performance-based management of resources and the delivery of dividend distribution. By focusing on EBITDA as a shareholders. Calculated by deducting net financing long-term success for all stakeholders. key metric, TECOM Group ensures that its strategic costs paid from cash flow generated by operations, remuneration for Senior decisions are aligned with its mission to empower FFO provides a clear view of TECOM’s financial Management and employees. businesses and drive long-term success. health and operational efficiency. Strategic Component Strategic Component Strategic Component We define our Key Performance Indicators (KPIs) by aligning strategic objectives and risk management with operational execution, integrating the core components of our Our Performance Our Performance Our Performance

We define our Key Performance Indicators (KPIs) by aligning strategic objectives and risk management with operational execution, integrating the core components of our business plan under the following priorities:

Our Performance The 11% year-on-year revenue growth achieved by TECOM Group in 2024 was driven by a combination of factors that reflect the strength of its integrated business districts. Driven mainly by higher occupancy across the portfolio, improved leasing rates, growth in business services, robust macroeconomic conditions and exceptional customer retention rates have contributed to this milestone. These results underscore TECOM’s ability to harness its unique infrastructure and services to create value and foster shared success across its diverse ecosystem.

In 2024, TECOM Group achieved an 12% In 2024, TECOM Group’s FFO continued its year-on-year increase in EBITDA, reaching AED upward trajectory, achieving a 14% year-on1,854 million. This growth was accompanied year increase. This growth reflects the Group’s by an expansion in EBITDA margin to 77%, up commitment to creating value for both business from 76% in 2023. This EBITDA performance partners and shareholders. Key drivers of this is underpinned by the Group’s solid revenue performance included strong revenue growth, growth and operational efficiency, as well as its disciplined cost management, and a welleffective cost management. structured financing strategy that benefited from a declining average cost of debt.

the value we deliver to our investors

how well we serve our customers

what strategic processes do we deploy to provide value

how we sustain growth and continue to create values for our stakeholders

Occupancy Retention Customer satisfaction 94.4% 91.9% 87.1% 86.0% 88.8% 94.4% 92.3% 91.1% 91.9% 87.7% 87.4% 87.1% ’22 ’23 ’24 ’22 ’23 ’24 ’22 ’23 ’24 Why We Use this Indicator Why We Use this Indicator Why We Use this Indicator Occupancy is a key metric for TECOM Group, Retention is a critical measure for TECOM At TECOM Group, customer satisfaction providing critical insights into the utilisation Group, enabling us to assess the stability of is integral to our strategy of creating and efficiency of our portfolio. It reflects how our lease agreements and mitigate revenue interconnected business districts that empower effectively our commercial and industrial spaces risks. We achieve this by fostering strong tenant businesses to thrive. By prioritising the needs are being leased and serves as a benchmark for relationships, implementing effective feedback and experiences of our tenants, we ensure that the performance of our offerings. Occupancy is mechanisms, and offering a diverse range of our offerings remain aligned with their evolving calculated by dividing the total leased space by solutions tailored to customer needs. Retention expectations while fostering a collaborative and the total leasable space, offering a clear measure is calculated by determining the total lease value supportive environment. of portfolio optimisation. of built-to-lease tenants retained within the Group’s portfolio. Strategic Component Strategic Component Strategic Component

Our Performance

Our Performance Our Performance In 2024, occupancy levels across TECOM Group’s In 2024, TECOM Group achieved a 92% commercial and industrial assets reached an retention rate across its portfolio, marking a 1% impressive 94%, reflecting a 5% increase over year-on-year growth. This reflects strong tenant 2023. This achievement demonstrates the satisfaction and highlights the value tenants resilience of our portfolio and our unwavering place on TECOM’s offerings despite rental commitment to delivering tailored solutions that rate increases, which demonstrate the strong enhance tenant satisfaction. demand for TECOM’s premium assets.

Our Performance In 2024, TECOM Group remained committed to enhancing the customer experience by actively seeking feedback and identifying opportunities for improvement. While rent escalations influenced recent shifts in satisfaction levels, customer insights have been instrumental in pinpointing areas requiring additional focus and refinement.

Strategic Pillars

Optimise Core Business & Performance Develop Differentiated Value Proposition

Build New Sources of Growth

TECOM Group PJSC Annual Report 2024

RISK MANAGEMENT – CONTINUED

RISK MANAGEMENT

Financial Statements

Strategic Report

ESG

Corporate Governance

ESG Corporate Governance

Risk Management Overview

Risk management is an integral part of all TECOM Group activities. Our culture drives us to consider the risks and opportunities of any new business decision. We focus on key risks that could impact the achievement of our strategic goals and, therefore, the performance of our business.

Risks are considered at every level of This section outlines our comprehensive the business, including when approving risk management framework, highlighting corporate transactions, property acquisitions our commitment to not only identifying and refurbishment and redevelopment and mitigating risks but also integrating projects. Our approach to risk management key Environmental, Social, and Governance is designed to protect and enhance value (ESG) factors into our risk assessment and for our stakeholders, ensuring long-term management processes. As we navigate resilience and adaptability in a dynamic through an ever-evolving business market landscape. environment, our dedicated focus on risk management positions TECOM Group to effectively manage potential challenges and seize emerging opportunities.

Risk management achievements and key successes in 2024

TECOM Group continuously strives to strengthen and enhance its risk management, internal control and compliance practices. In 2024, the following achievements were made:

We have ensured regular and periodic reporting to the Risk Committee on the TECOM Group risk profile. Five Risk Committee meetings were conducted in 2024, and Quarterly Risk Reports were submitted to the Board. Please refer to the Corporate Governance section (page 152) for further details.

Group’s business resilience and align it with best practices. Further details can be found in the Risk Management Overview.

A Risk awareness session on the current UAE market and Real Estate risks was provided to the Board members as part of the Board Strategy Day
Risk Management awareness sessions were provided to TECOM Group employees.
The Risk Appetite Statement was were provided to TECOM Group
updated to reflect recent business employees.
changes and approved by the Board. We have assessed and applied the • TECOM Group’s Internal Audit approved risk appetite across all risks. Department conducted a review of the Risk Management Department’s
• The ERM framework was updated to governance, focusing on Risk
align with the recent changes in business monitoring, reporting, project risk
and processes. management and other key processes.
Key Risk Indicators (KRIs) were revised and updated to include additional indicators.
Risk champions from each department and business district were identified and provided training on the ERM software to allow seamless identification and monitoring of risks across TECOM.
TECOM has completed a comprehensive review and enhancement of its Business Continuity and Crisis Management documentation. This initiative aims to strengthen TECOM

Risk Management Governance

The Board has ultimate responsibility for effectively overseeing risk for TECOM Group, including determining its risk appetite. The Risk Committee serves as a governance oversight body to review and challenge the risk management processes.

The Diagram beside depicts the hierarchy of the Risk governance structure at TECOM group:

Board of Directors

Strategic Oversight and Governance

The TECOM Group Board of Directors play a crucial role in the overall governance and strategic direction of risk management.

The Board’s responsibilities include:

Setting the tone:

Establishing a risk management culture and philosophy that aligns with TECOM Group’s values and business objectives.

Strategic oversight:

Ensuring that risk management strategies and policies support the company’s long-term goals and are effectively integrated into corporate planning.

Accountability:

Holding the Risk Committee and management accountable for effective risk management and compliance with established policies.

Risk Committee

Risk Oversight

Operating under the board’s mandate, the Risk Committee provides more focused and detailed oversight of TECOM Group’s risk management practices.

TECOM Group’s risk management practices include:

Specialised oversight: The committee oversees the development, implementation, and effectiveness of risk policies and procedures.

Risk appetite and tolerance: The Committee assists the Board in setting and monitoring the risk appetite and tolerance levels.

Reporting and advisory: It regularly reports to the Board on risk exposure and mitigation strategies and advises on significant risk-related decisions.

Risk Management Department

Operational Implementation

The Risk Management Department, led by the Director of Risk, is responsible for managing day-to-day risks.

The day-to-day tasks include:

Risk identification and assessment: Conducting thorough risk assessments across various functions and reporting findings to the Risk Committee.

Mitigation and control: Monitoring the risk mitigation strategies and controls as approved by the Risk Committee.

Monitoring and reporting: Continuously monitoring the risk environment and providing regular reports to the Risk Committee and the Board.

Risk awareness training: Providing regular risk awareness training to TECOM Group employees.

TECOM Group PJSC Annual Report 2024

RISK MANAGEMENT – CONTINUED

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Enterprise Risk Management (ERM) Framework

TECOM Group’s enterprise risk management framework emphasises proactive risk identification, thorough assessment, and effective mitigation. Our policy and strategy are deeply integrated with our strategic objectives, ensuring alignment with our overall vision. Responsibilities are clearly delineated within the organisation, from the Board level to operational teams, creating a culture of risk awareness and accountability.

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Risk Management Process
Establish context
Risk assessment
Risk identification
Risk analysis
Risk evaluation
Risk treatment
Recording and reporting
Monitoring and review
Communication and consultation
----- End of picture text -----

Our framework is dynamic, undergoing

regular reviews and updates to remain responsive to the evolving internal and external conditions. This dynamic approach ensures that our risk management practices are always aligned with the current risk landscape and TECOM Group’s changing strategic priorities.

We leverage different tools, techniques and methodologies. This includes an internal risk management platform (ERM software), which enables us to capture, assess, track and monitor risks. This centralised repository maintains documents, assigns duties and tasks, generates reports and tracks progress.

To ensure that risks are appropriately identified, assessed and mitigated, we also leverage different techniques and methodologies, including setting and monitoring KRIs, which are a vital part of trend analysis and identifying emerging risks. The Risk Management process is illustrated beside:

Incorporation of ESG in Risk Management

TECOM Group has integrated ESG considerations into our Enterprise Risk Management (ERM) framework. This strategic initiative ensures the incorporation of ESG principles across all business operations while proactively managing the associated risks.

During the risk assessment process, every identified risk underwent a thorough assessment from an ESG perspective, shedding light on the nuanced impacts that these risks may have on our ESG commitments. This approach not only strengthens our risk management capabilities but also aligns with our broader commitment to sustainability, ensuring that ESG considerations are woven into the fabric of our organisational resilience and growth.

Risk Identification and Assessment

Our approach to risk identification and assessment is comprehensive and systematic. This continuous process allows us to promptly identify emerging risks and adjust our strategies accordingly. Our risk assessments consider both the likelihood of occurrence and potential impact, enabling us to prioritise risks effectively and allocate resources where they are most needed.

Each Department and business district Risk Mitigation has its risk register, which is reviewed on a and Treatment regular basis and monitored continuously. Further, we have developed a corporate risk To mitigate identified risks, TECOM Group register through collaboration with Senior implements a range of strategies tailored to Management and other stakeholders. the nature and severity of each risk. These The corporate risk register includes the strategies include, but are not limited to, key financial, strategic, operational and risk avoidance, reduction, sharing, and compliance risks that could have an impact acceptance. on the organisation. The Risk Committee reviews the corporate risk register on a Risk owners are accountable for confirming quarterly basis before it is presented to that adequate controls are in place and the Board. that the necessary treatment plans are implemented to bring the risk within an Risk Appetite acceptable tolerance level. and Tolerance

To mitigate identified risks, TECOM Group implements a range of strategies tailored to the nature and severity of each risk. These strategies include, but are not limited to, risk avoidance, reduction, sharing, and acceptance.

We continue to monitor the status of our The Board is responsible for defining the risk treatment plans throughout the year level of risk that the Group is willing to take and report on their progress to the Risk and ensuring it remains in line with our Committee and the Board regularly. strategy. The risk appetite differs for each risk and varies between the different categories of risks.

The risk appetite reflects TECOM Group’s risk management philosophy and, in turn, influences culture and operating style. To embed risk appetite effectively in the business, management must establish limits and thresholds for the key risk indicators associated with each risk. Our corporate risk register outlines these Key Risk Indicators (KRIs), which are monitored regularly against thresholds set for our key risks. These risks are aligned with TECOM Group’s strategy.

TECOM Group PJSC Annual Report 2024

RISK MANAGEMENT – CONTINUED

Financial Statements

ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Principal Risks Overview

Our principal risks consist of the ten most significant internal and external risks. The identified list of principal risks is not an exhaustive description of all possible risks but rather a snapshot of TECOM Group’s main risk profile.

TECOM Group’s overall risk profile has not significantly changed compared to 2023. Nevertheless, there have been minor changes in risk movements and an addition of new risks. The Board has finalised its assessment of these risks and any changes to the residual risk profile during the year.

The table beside summarises TECOM Group’s internal and external principal risks, showing how each links to our strategic objectives.

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Strategic Objectives
Optimise Core Develop Build New
Business & Differentiated Sources Risk
Principal Risks Performance Value Proposition of Growth Change
1 Market Competition • • •
2 Market and economic volatility • • •
3 Cybersecurity threats •
4 Geopolitical instability • • •
5 Ageing assets • •
6 Asset performance • • •
Extreme weather conditions
7 •
and climate change
8 People risk • •
9 Regulatory changes •
10 Development projects • •
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Strategic Pillars

Optimise Core Business & Performance

Develop Differentiated Value Proposition

Build New Sources of Growth

Risk Change

Increase Decrease No change New

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1 2
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Market Competition

Market and Economic Volatility

Cybersecurity Threats

Strategic Objective

Risk Movement

Risk details

We operate in a competitive market that is likely to become more competitive in the future. Companies with commercial properties compete to attract customers based on rental rates, operating costs, location, condition and features of the property.

Changes in the macroeconomic environment can pose risks and opportunities, and they may adversely impact our cost base, pricing strategies, profitability and market share.

Cyber-attacks and security breaches may threaten the integrity of our intellectual property and other sensitive information and disrupt operations and activities.

Controls and Mitigations

The Board reviews the growth strategy that • Continuous monitoring of market economic • Several preventive security IT controls are considers future competition, in addition to trends and metrics and sector performance implemented and active to protect our IT periodic review of our pricing strategy to be (Real Estate, Industrial, Warehouses, Startups, networks and infrastructure. dynamically adjusted based on the market SMEs, etc.). • An Information Security Incident Response Plan conditions and landscape. • Continuous monitoring and review of products is in place and will be activated in case of any
• Market intelligence reports are issued to and pricing structures across all products and incidents or threats to identify the necessary Senior Management quarterly, monitoring brands to sustain the current high occupancy procedures. and providing insights into the market and and avoid potential revenue loss due to long competition landscape. vacancy periods.
Introduction of Innovative and alternative products to customers.
Detailed Market Intelligence reports are issued quarterly to Management to support decisionmaking and forecasting.
Strengthen customer loyalty by enhancing customer experience wherever possible.
• A new Strategic Acquisition and Development
Treasury risk management to mitigate against any adverse movements in financial markets.
Plan has been developed and approved, which will help TECOM expand its assets and portfolio base.
TECOM has been engaged in hosting several events to increase awareness and attract new customers and business partners.

TECOM Group PJSC Annual Report 2024

RISK MANAGEMENT – CONTINUED

Financial Statements

Strategic Report

ESG

Corporate Governance

ESG Corporate Governance

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4 5 6
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Asset Performance

Geopolitical instability

Strategic Pillars

Ageing Assets

Optimise Core Business & Performance Develop Differentiated Value Proposition

Strategic Objective

Risk Movement

Build New Sources of Growth

Risk details

Ageing assets present a progressively increasing threat to operational efficiency and financial performance. Ageing assets consume more resources and capital, reducing customer appeal, and risking noncompliance with latest industry standards, potentially harming the company’s reputation and market competitiveness.

Structural changes in customer and business expectations leading to changing demand for office space could adversely affect underlying income, rental growth and asset performance.

Geopolitical instabilities in the region can impact business sustainability, create barriers Risk Change for companies and people, and disrupt global supply chain activities.

Increase Decrease No change

Controls and Mitigations

Due to changes in commercial trading
Developing programmes of enhancement by analysing risk-related assets in seeking applicable improvements to extend asset life.
Asset performance is monitored through live dashboards and reported on a monthly basis to Management and on a quarterly basis to the Board.
dynamics, we are adopting a proactive practice of monitoring and recording all geopolitical matters through available channels.

New

The impact of geopolitical instabilities/events is discussed and assessed with the Crisis Management Committee, and proactive measures are taken when needed to monitor and mitigate any adverse impact (e.g., pricing strategies, treasury management, etc.).
Regularly review and update of pricing policy and product positioning based on market trends, competitor benchmarking, and the nature of the asset.
Proactive maintenance schedules.
Monitoring overall performance of ageing assets and regular reporting on progress and results.
Introduction of Innovative and alternative products to customers.
• Enhanced market insights and intelligence reports to support our business decisions.
Business Continuity and Disaster Recovery plans are established and updated based on recent changes in the market and organisation.

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8
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9
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7

Extreme Weather Conditions and Climate Change

People Risk

Regulatory Changes Development Projects

Strategic Objective

Risk Movement

Risk details

Our existing development or future planned projects may be delayed, suspended, terminated, or materially changed in scope.

The inability to attract, develop and retain talent impacts our ability to achieve our strategic objectives and grow enterprise value.

Non-compliance with relevant laws and regulations resulting in potential reputational damage and financial penalties.

Climate change is driving the increasing frequency and intensity of catastrophic weather events, which pose a significant risk to TECOM Group’s operations and assets. Climate change exacerbates extreme weather events such as flash floods, prolonged heatwaves, sandstorms, and rising sea levels.

Controls and Mitigations

Human Capital follows an effective retention • Embedded legal and compliance teams • Continuous monitoring of project timelines, strategy thereby maintaining low employee supported by external legal experts as needed. progress and cost management and report turnovers. • Compliance Committee overviews the any major issues or variations that could have
• Internal initiatives to champion diversity regulatory changes that have any impact on a negative impact on the delivery schedule. and inclusion, social impact and employee our business and operations on a regular basis • Response plans are in place to address any major wellbeing. • Dedicated Ethics & Compliance programme, events and arising risks.
Crisis Communication policy is in effect and shall be followed upon the incident occurrence
A Crisis Management committee, chaired by the CEO, is in place and will be formed in case of any potential or occurring crises.
- Dedicated Ethics & Compliance programme, events and arising risks. including Code of Conduct, compliance • Robust contractor prequalification and selection policies and procedures, annual compliance of a proper consultant to supervise the training, and whistleblowing programme. performance of the contractor
A succession plan has been developed and regularly reviewed for senior and critical roles.
Regular evacuation drills are carried out to A succession plan has been developed and ensure the readiness of employees in case regularly reviewed for senior and critical roles. of any incidents. • Employees’ performances are reviewed and rewarded on an annual basis.
Compliance reviews and audits are carried out across the organisation to ensure compliance with laws and regulations.
An Alert mechanism is in place to alert rewarded on an annual basis. employees of possible threats and weather • Remuneration plans are developed for conditions and provide guidance and key roles. contacts for assistance and support.
Engineering and Facilities Management, in coordination with our security team, take necessary measures to ensure the safety of our employees and business partners and reduce the impact of incidents on our assets.

TECOM Group PJSC Annual Report 2024

STAKEHOLDER ENGAGEMENT – CONTINUED

STAKEHOLDER ENGAGEMENT

Strategic Report ESG Corporate Governance Financial Statements

Together, we create lasting value

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lasting value Stakeholder Group Our Employees Our Customers Who are they? All individuals employed by TECOM Group. People and businesses using TECOM Group’s services. We prioritise cultivating strong partnerships with our stakeholders, Why do they matter? A motivated and engaged workforce is essential for Customers are the cornerstone of our operations, aiming to foster meaningful connections delivering value across all stakeholder groups. Their shaping our reputation and driving revenue. and create lasting value. Our approach contributions enhance productivity, drive innovation, Their feedback is instrumental in guiding service is carefully tailored to the specific needs and ensure customer satisfaction. improvements and innovation. and contexts of each stakeholder group, ensuring open communication and collaboration that drives mutual success and shared aspirations. What do they want Employees seek fulfilling careers, opportunities for Customers expect premium-quality spaces, excellent from TECOM Group? professional growth, competitive compensation, services, fair pricing, convenience, flexibility, recognition, and a supportive work environment that professionalism, and responsiveness to their needs. values diversity and inclusion. How do we engage • Conduct employee satisfaction surveys and • Conducting Voice of Customer (VoC) surveys at with them? implement improvement initiatives. key touchpoints to gather actionable insights. • Facilitating communication through internal • Engaging in regular interviews to better platforms like intranet and email. understand their requirements. • Offering relevant training programmes for skill • Providing targeted updates through various development. channels to keep them informed about relevant • Promoting wellness through sports events, healthactivities. focused activities, and year-round initiatives. 2024 Highlights 75% >5 years 5,515 87.1% 8.0% Employee Employee Customer Growth in Number Loyalty Trainings Hours Satisfaction of Customers

Stakeholder Group Who are they? Why do they matter?	Our Partners Entities with contractual relationships or shared goals with TECOM Group. Partners contribute significantly to our operations by offering services such as space development, maintenance, regulatory approvals, and license allocation.	Our Community Local neighbourhoods where TECOM operates include residents, professionals, businesses, and government entities. Communities enhance our brand reputation while serving as a source of potential customers and skilled talent.	Our Shareholders Everybody who own shares in TECOM Group. Shareholders provide the capital necessary for investment, operations, expansion, and innovation. Their perceptions influence the company’s image and attract new investors.
What do they want from TECOM Group?	Partners value transparent dealings, fair pricing, growth opportunities, long-term relationships, and reliable transactions.	Communities expect positive contributions to social and physical infrastructure, job creation, economic development, and support for local initiatives.	Shareholders seek returns through share price appreciation and dividends while valuing transparency in financial reporting and governance practices.
How do we engage with them?	• Build long-term partnerships to enhance customer service delivery. • Hosting meetings to communicate product or service requirements. • Maintaining an ongoing dialogue with government bodies on national initiatives.	• Creating job opportunities for local talent with annual improvement targets. • Organising charitable events like We Walk and distributing free meals during Ramadan. • Hosting networking events, sports challenges, and specialised workshops.	• Hosting quarterly investor calls for results presentations that are accessible online or in person. • Publishing quarterly reports on our website for transparency. • Organising roadshows in collaboration with financial markets and banks. • Conducting an annual general assembly event for investors.
2024 Highlights	100% On Time Payments	4 Number of CSR Events 12,000 Number of Iftar Meals Donated	9 Analysts Coverage 60 Investor Meetings and Roadshows

TECOM Group PJSC Annual Report 2024

Environmental, Social and Governance

A commitment to balancing growth with meaningful societal and environmental contributions.

Letter from the CEO	94
ESG Policies and Governance	99
Forward-LookingStatement	125
Annex – EPRA Index	126
Annex – EPRA Index Methodology	129

Strategic Report ESG

ESG

About This Report

TECOM Group PJSC is dedicated to aligning responsible business practices with sustainable development goals, showcasing its commitment to Environmental, Social, and Governance (ESG) principles. The 2024 ESG report highlights progress across the Group’s operations, reflecting a commitment to balancing growth with meaningful societal and environmental contributions.

This report summarises TECOM Group’s ESG TECOM Group’s ESG initiatives are firmly journey to date. Key sections include: rooted in recognised frameworks and disclosures, ensuring transparency and • Overview – An in-depth look at TECOM alignment with global best practices. Group’s ESG Framework, associated These frameworks include the ESG policies, governance practices, and disclosures recommended by Dubai stakeholder management. Financial Market, reference to the Global • ESG Performance Dashboard – Reporting Initiative (GRI), disclosures An at-a-glance summary of progress recommended by the European Public across all material ESG topics, providing Real Estate Association (EPRA), and key metrics and insights. assessment criteria of the Global Real • Approach and Progress on Material Estate Sustainability Benchmark (GRESB). Topics –This is a detailed review of each material topic under TECOM Group’s five ESG pillars, covering the management approach, key initiatives, and significant achievements.

TECOM Group PJSC Annual Report 2024

CEO INTRODUCTION TO ESG

ESG HIGHLIGHTS

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

ESG

Strategic Report

Corporate Governance

CEO Introduction to ESG

Together, we are building vibrant ecosystems that foster innovation, inclusivity, and sustainability, creating shared prosperity and a legacy for future generations.”

2024 was a remarkable year for TECOM electricity consumption. Initiatives such We continued to drive progress through Group as we furthered our commitment as Dubai Can highlight our commitment innovation and inclusivity. Our in5 to shaping a sustainable, inclusive, and to resource efficiency and advancing the incubator played a key role, supporting innovative future. Following the UAE’s circular economy. 410 active start-ups in 2024, 30% of Year of Sustainability in 2023 and Dubai’s which are women-owned, showcasing hosting of COP28, we embedded Our focus on fostering a safe, inclusive, our commitment to fostering an sustainability into our operations, and empowering work environment inclusive entrepreneurial ecosystem. aligning with our priorities and the remained steadfast. We maintained a Our procurement practices continue to UN Sustainable Development Goals. robust health and safety management advance, including engagement with system through assessments, SMEs, women-owned businesses, and This year, we strengthened our ESG audits, and training programmes for local suppliers, fostering shared value governance by forming an ESG employees, customers, and suppliers. throughout our ecosystem. In parallel, Committee, bringing together leaders With women comprising one-third our social impact initiatives – The to drive accountability and ensure of our workforce, we demonstrate Good Store and WeWalk charity walk – strategic alignment. Additionally, we our commitment to equity and continue to deliver meaningful impact. introduced a comprehensive ESG opportunity. We continued to invest in Policy that defines clear objectives and our employees’ growth, with training As we reflect on these milestones, commitments to guide our sustainability hours averaging 20.3 hours per person, I extend my deepest gratitude to all our journey. ESG is considered during risk ensuring they are equipped to realise stakeholders – employees, customers, management, supported by proactive their full potential. investors, and partners – for their

This year, we strengthened our ESG governance by forming an ESG Committee, bringing together leaders to drive accountability and ensure strategic alignment. Additionally, we introduced a comprehensive ESG Policy that defines clear objectives and commitments to guide our sustainability journey. ESG is considered during risk management, supported by proactive measures to monitor and address intense weather conditions, reinforcing our climate resilience.

our employees’ growth, with training As we reflect on these milestones, hours averaging 20.3 hours per person, I extend my deepest gratitude to all our ensuring they are equipped to realise stakeholders – employees, customers, their full potential. investors, and partners – for their unwavering support. Together, we are We maintained a consistent dialogue building vibrant ecosystems that foster with our customers throughout the year, innovation, inclusivity, and sustainability, leveraging their feedback to improve creating shared prosperity and a legacy experiences and services. Our diverse for future generations. calendar of events across all districts

Environmental stewardship is central to our vision, delivering measurable results and earning recognition. 49% of our commercial portfolio is LEEDcertified, while our energy management practices earned recognition from the Dubai Supreme Council of Energy. With a solar capacity of 10.05 MWp, our solar energy generation over the past two years has averaged 7% of our total

provided opportunities for learning and Abdulla Belhoul networking, fostering engagement and Chief Executive Officer collaboration among our customers and TECOM Group PJSC strengthening our vibrant community. We have also invested in enhancing outdoor spaces across our districts, prioritising customer well-being.

Executive Summary

This year’s ESG Highlights showcase our progress across the pillars of Governance, Economy, Community, People, and Environment.

These achievements demonstrate our commitment to reducing our environmental impact, fostering transparent governance, supporting communities, and promoting diversity and well-being. Through strong partnerships, we continue to advance sustainable practices, drive economic growth, and deliver long-term value for our shareholders and customers while making a positive impact across our operations and communities.

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People

Environment

Governance

Economy

Community

Targeted surveys of customer • Generated 14.2 GWh of leadership to understand to clean energy compared to provide insights on service 12.3 GWh in 2023. quality, sustainability, and • Achieved 11.8% reduction well-being, from energy savings project
• 7.8% increase in active startin 2023 and 2024. ups under the in5 incubator, • 321 tonnes of waste recycled. totalling 410 active start-ups, • 36.3% of waste diverted to up from 380 in 2023. a Waste to Energy Plants.
26% Emiratisation rate, up from 24% in 2023.

• Developed an ESG Policy outlining objectives and commitments across material topics to guide sustainability efforts.

• Invested AED 1.4 million in CSR activities, including WeWalk charity walk, The Good Store, Pink Caravan and donating meals during Ramadan.

35% female employees, reflecting continued progress in gender diversity.
20.3 average hours of training achieved by employees compared to 15.2 in 2023.
A robust ESG governance structure was established, integrating accountability at all levels through the Risk Committee, ESG Committee, and ESG Champions.

• Partnerships with Emirates compared to 15.2 in 2023. Red Crescent, Dubai Charity • Maintained zero work-related Organisation and Beit Al injuries or fatalities. Khair Society.

30% active start-ups owned • Achieved 12 new LEED by women. certifications, including
• 87.1% Customer 8 Gold and 4 Platinum Experience Index. rated buildings.
Raised 268,744 from communities.

• We strengthened organisational resilience through crisis management plans and enhanced monitoring of extreme weather events.

Investments in outdoor space to improve customer well-being.

TECOM Group PJSC Annual Report 2024

ENVIRONMENTAL, SOCIAL AND GOVERNANCE – CONTINUED

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

Financial Statements

Corporate Governance Financial Statements

ESG

Strategic Report

Corporate Governance

Strategic Report

ESG Overview

TECOM Group’s vision is to lead the creation of innovative ecosystems that foster sustainable growth and future development. We are dedicated to building dynamic environments that empower customers and contribute to Dubai’s growth. We seamlessly integrate global companies, regional leaders, and SMEs across our specialised 10 business districts in six vital sectors. Our operations span offices, logistics, worker accommodations, and land leasing, supported by essential government and business services for our community.

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As a significant player in the built social cohesion, and societal progress while environment, we recognise the impact of preserving environmental, financial, and our operations and the essential role we social value for all stakeholders. play in climate action, addressing the real estate sector’s responsibility to reduce To achieve this, we have established a emissions and environmental footprints. structured approach to managing ESG We aim to drive sustained economic value, within TECOM Group.

social cohesion, and societal progress while preserving environmental, financial, and social value for all stakeholders.

This framework defines key material topics, guiding ESG initiatives toward areas of greatest impact and relevance.

ESG Framework and Material Topics ESG Objectives

Provide a clear roadmap for achieving TECOM Group’s sustainability vision, driving progress across all pillars.

Outlines roles and responsibilities across the workforce, ensuring active engagement in ESG implementation.

ESG Governance

This section highlights key policies that support ESG practices within the company, including our ESG Policy, which formalises commitments across all material topics, ensuring accountability and consistency in practices.

Policies supporting ESG and ISO Certifications

These elements underscore TECOM Group’s commitment to responsible growth and a sustainable future for all.

ESG Framework and Material Topics

At the heart of TECOM Group’s operating model and sustainability efforts is its ESG Framework, organised around five pillars – Governance and Risk, Economy, Community, People, and Environment. TECOM Group’s ESG approach aligns with national strategies, including the Dubai Clean Energy Strategy 2030, UAE Net Zero 2050 Strategy, the UAE Green Agenda

2030, and global standards like the United Nations Sustainable Development Goals (UNSDGs). The framework identifies 14 material topics within these pillars, highlighting areas with the most significant impact on the Group’s sustainable operations and performance. TECOM Group is committed to managing these topics to achieve its ESG objectives.

Our Core ESG Pillars

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Governance & Risk

People

Community

Environment

Economy

Economic performance
Energy efficiency • Investing in local communities • Safe and healthy workplaces • Water efficiency • Training and development Read more on page 113
• Waste management Read more on page 116
• Reducing GHG emissions Read more on page 119
Ethical business practices
Robust governance
Incubating innovation
Prudent risk policies and management
Customer centricity

ESG Objectives

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ESG Objectives

TECOM Group’s objectives towards ESG, outlined in its ESG Policy, are as follows:

Promote robust governance and ethical standards in line with our Code of Conduct, expecting the same from our suppliers and partners.
Establish sustainable supply chains by working with our suppliers and, prioritise support for women-owned businesses and SMEs, including those within our start-up incubators.
Pioneer environmental stewardship within the commercial real estate sector in the UAE by promoting efficient and responsible consumption of natural resources, minimising our environmental impact, and continuously improving energy efficiency.
Contribute to community development initiatives that benefit society at large while promoting responsible living and fostering healthier lifestyles.
Ensure ongoing compliance with evolving ESG regulatory standards.
Build a resilient portfolio by investing in highquality, sustainable infrastructure to mitigate climate risks, including natural hazards and extreme weather events.
Maintain consistency, transparency and reliability in measuring and communicating our ESG impacts and expand on our reporting frameworks periodically.
Engage in and advocate for global climate action initiatives by actively working towards reducing our carbon footprint.
Foster strong stakeholder relationships to drive ESG initiatives forward.
Ensure the health, safety, and well-being of our employees, customers, and suppliers while fostering a diverse and inclusive workplace and business environment that ensures fair treatment for all.

These objectives are designed to guide TECOM Group in achieving its vision of leading the curation of innovative ecosystems that drive sustainable growth and future development.

Invest strategically in employee development, empowering them to realise their full potential.

They also shape the Group’s commitments across each material topic outlined in its ESG Policy and this report, ensuring a cohesive approach to creating value for stakeholders and fostering a resilient, sustainable future.

Create sustainable and inclusive spaces that deliver long-term social value for customers and communities.

ESG Governance

In 2024, TECOM Group established its ESG Governance structure to support effective ESG implementation. This governance framework provides a clear, tiered approach for decision-making, oversight, and executing ESG initiatives, ensuring that ESG objectives are achieved transparently and cohesively.

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In 2024, TECOM Group established its ESG
Governance structure to support effective
ESG implementation. This governance • Highest-level decision
framework provides a clear, tiered approach Risk making body on ESG
for decision-making, oversight, and Committee • Oversight of ESG strategy
and implementation
executing ESG initiatives, ensuring that
ESG objectives are achieved transparently
and cohesively. • Comprising of leadership from
Strategy & Marketing, Engineering,
• At the top of this structure, the Board ESG Committee Human Capital and Finance
Risk Committee serves as the primary • ESG strategy development and
implementation
decision-making body, overseeing ESG
implementation by monitoring objectives,
strategies, and associated risks.
• The CEO plays a pivotal role in • Supporting leadership with
reviewing and guiding ESG strategy ESG Champions ESG implementation in their
and governance, receiving quarterly respective departments
updates from the ESG Committee to
ensure alignment with TECOM Group’s
broader objectives.
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• The ESG Committee, led by the Senior ESG governance is structured to align with broader directly linking them to bonus incentives. This ensures Vice President of Strategy and Marketing risk management and strategic objectives, embedding that ESG priorities are embedded within daily operations, and composed of senior leaders across accountability and continuous improvement across all motivating teams to deliver measurable outcomes and Engineering, Human Capital and Finance, levels of the organisation. ESG KPIs have been integrated reinforcing the importance of achieving set objectives. are accountable for ESG implementation into selected departments to strengthen accountability, and offers essential coordination and strategic recommendations to drive ESG performance.

Supporting this governance structure, ESG Champions within each department actively work with the ESG Committee to implement initiatives, track progress, and address barriers, fostering an integrated culture of sustainability throughout TECOM Group.

TECOM Group PJSC Annual Report 2024

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Strategic Report

Corporate Governance

Policies supporting ESG and ISO certifications

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TECOM Group’s commitment to fostering a responsible and sustainable business environment is reflected in its comprehensive policies and globally recognised certifications. These policies ensure the Group operates with integrity, prioritising sustainability, employee and customer well-being, and environmental stewardship in all aspects of its business.

The following policies serve as the foundation for its responsible operations and workforce practices. Each policy embodies the Group’s dedication to ethical governance, employee well-being, and environmental stewardship, providing a structured approach to achieving its ESG objectives.

ESG Policy

TECOM Group’s ESG Policy underpins its commitment to embedding sustainability throughout its operations, supporting a business model geared towards growth, resilience, and sustainable development. Updated in 2024, this comprehensive policy outlines the Group’s strategic approach to material ESG matters, setting defined objectives that integrate sustainability across all operational areas. The policy addresses 14 material topics aligned with the ESG Framework, focusing on responsible business practices, environmental stewardship, and social responsibility. To drive accountability and progress, a robust governance structure is in place to support and oversee the implementation of these commitments.

Human Capital (HC) Manual

The Human Capital Manual establishes fair and consistent practices for managing TECOM Group’s workforce and ensures a supportive, equitable work environment. It includes key policies on recruitment, leave, compensation, benefits, and allowances, alongside comprehensive guidelines for employee development. The manual also encompasses the company’s Code of Conduct and grievance mechanisms, promoting ethical behaviour, addressing workplace concerns, and supporting career growth. These policies are a foundation for fostering a motivated and empowered workforce aligned with the Group’s values.

Health, Safety and Environmental (HSE) Policy

TECOM Group’s HSE Policy ensures the highest occupational health, safety, and environmental responsibility standards across its operations. This policy is designed to comply with all applicable HSE regulations while adhering to the Group’s rigorous internal HSE management standards. Through this policy, TECOM Group aims to protect the well-being of its employees and the environment, actively minimising risks and fostering a safe, responsible work environment that prioritises sustainability in all operations.

HSE Community Guidelines

Business Continuity Business Continuity Plans (BCPs), Crisis HSE Community Guidelines Management Policy Management Plan, and Crisis Communication The Community Guidelines is a The Business Continuity Management Plan. Aligned with TECOM Group’s mission comprehensive document for all customers, Systems (BCMS) Policy ensures TECOM to create innovative ecosystems that outlining mandatory requirements and best Group’s comprehensive oversight of business support Dubai’s economic aspirations, the practices for maintaining a safe, sustainable, continuity and crisis management across all Policy covers Business Districts, centralised and well-managed environment within departments. Its purpose is to ensure TECOM corporate functions, and critical third TECOM Group assets. It encompasses key Group can continue delivering services parties. The BCMS Policy highlights TECOM health, safety, and environmental aspects, with minimal impact and within predefined Group management’s commitment to including emergency response protocols, recovery time objectives during disruptions. operational resilience, ensuring it is effectively operational risk management measures, and The BCMS is implemented through a robust communicated, understood, and regularly water and waste management guidelines. framework that includes the BCMS Manual, reviewed to safeguard business continuity. Customers are required to acknowledge the guideline, ensuring alignment with TECOM Group’s standards for safety and sustainability.

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ISO Certifications

TECOM Group is proud to be certified under ISO 14001 and ISO 45001, which reflect its dedication to environmental management and occupational health and safety. These certifications serve as a cornerstone for the Group’s ESG objectives, reinforcing its commitment to maintaining the highest standards of sustainability and employee well-being.

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Strategic Report ESG Corporate Governance Financial Statements

ESG

Strategic Report

2024 ESG Performance Dashboard

The 2024 ESG performance dashboard is a vital tool, reflecting TECOM Group’s achievements in embedding sustainability across the core pillars of Governance, Economy, Community, People, and Environment.

The dashboard provides a comprehensive view of ESG impact in 2023 and 2024, underscoring TECOM Group’s commitment to creating value for all stakeholders – including communities, employees, shareholders and the planet. It is a benchmark for driving continuous improvement towards a sustainable future and highlights our commitment to transparency and accountability.

Each highlight illustrates our progress toward transparent governance, robust economic growth, and impactful community contributions. It also reflects ongoing efforts and dedication to nurturing a diverse and inclusive workplace while adopting sustainable practices that reduce environmental impact.

	Material Topic 2023 Achievements Pillar 1 – Governance and Risk	Material Topic 2023 Achievements Pillar 1 – Governance and Risk	2024 Achievements
	1 Ethical Policies & Business Practices 2 Robust Governance	• 100% of employees briefed and educated on the Code of Conduct. • Work towards further strengthening mechanisms for data privacy. • ESG initiatives being tracked (e.g., utilities, solar, employee training, etc.).	• 100% of employees briefed and educated on the Code of Conduct. • Data Privacy Policy in place. • ESG Governance set up. • ESG Policy developed.
	3 Prudent risk management 4 Responsible Sourcing & Procurement	• ERM integrated with ESG; all business risks assessed for ESG. • Risk assessment of strategic suppliers undertaken by EcoVadis. • 19% spend on local suppliers, and 6% spend on SMEs and women owned businesses.	• Extreme weather conditions are monitored on a routine basis. • Monitoring of all risks against ESG impacts. • Risk awareness training. • Crisis Management and Communication Plans developed, and trainings undertaken. • Continued risk assessments of suppliers by EcoVadis. • Capacity building for procurement employees and suppliers on sustainability. • 13% spend on local suppliers, and 9% spend on SMEs and women owned businesses.

Material Topic

2023 Achievements Pillar 2 – Economy

2024 Achievements

5 Economic • As part of Group Business Plan 2023-27, Strategic objectives Performance embedded with ESG (2024-28) and ESG activity planning and consolidation are a priority (2023).
Our ESG initiatives are fully aligned with the Group Business Plan 2023-27, ensuring that sustainability is at the core of our strategic direction.
6 Incubating Innovation
380 Active start-ups.
410 Active start-ups.
123 Active start-ups owned by women (44.7% increase from 2023). • in5 start-ups raise AED 7.8 billion. • 1000+ start-ups supported since inception.
85 Active start-ups owned by women.
- At 87.1%, the full year CX score for 2024 was broadly in line with the previous year.
In 2023, we adopted a new score called Customer Experience (CX) Index in which a ‘Likelihood to Recommend’ metric was added to the existing ‘Satisfaction’ measure. This resulted in an increased transactional score of 87.9%.
7 Customer Centricity
A Mystery Customer study was also conducted to assess the level of service provided to ‘prospective’ customers.
To maximise reach, in-depth interviews were replaced with an annual online survey focusing on perceived service quality, sustainability and wellbeing.
• Investments to improve outdoor spaces for customer wellbeing.
In addition, in-depth interviews were conducted with a select group of customers to gain a broader understanding of customer experience. When the results of these interviews are incorporated with feedback from the transactional surveys, the Overall CX score was 87.4%.

Pillar 3 – Community

8 Investing • 7 CSR events undertaken in 2023. • 4 CSR events undertaken in 2024. in Local • AED 1.4 million CSR spending in 2023. • AED 1.4 million CSR spending in 2024.
Communities • Donated 12,000 meals during Ramadan. • Donated 12,000 meals during Ramadan. • Raised AED 178,010 from communities. • Raised AED 268,744 from communities (50.9% increase from 2023). • Initiatives include – The Good Store, WeWalk, Together We Can and the Colon Cancer awareness campaign.

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2024 ESG Performance Dashboard continued

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Material Topic 2023 Achievements 2024 Achievements
Pillar 4 – People
9 Safe and • 33% of the workforce are women. • 35% of the workforce are women.
Healthy • 24% Emiratisation rate, an increase of 3.08% from 2022. • 26% Emiratisation rate.
Workspace
• 0 work-related injuries and ill health. • 0 work-related injuries and ill health.
• 8x increase in staff trained on H&S. • Cross-functional team mobilised for employee wellbeing and an employee survey
• Employee engagement and recognition programme in place. was conducted.
10 Training & • 4,200 training hours. • 5,515 training hours.
Development • 15.27 training hours per employee. • 20.3 average training hours per employee (32.9% increase between 2023-24).
Pillar 5 – Environment
11 Energy • Electricity intensity – 119 kWh/m [2] • Electricity intensity increased by 7.6% compared to 2023.
Efficiency & • District cooling intensity – 286 kWh/m [2] • Like-for-like (LFL) electricity consumption decreased by 0.4%, reflecting consistency
Renewables
• Solar capacity – 8.34 MWp with a 10.8% increase in in efficiency measures.
solar generation. • LFL diesel consumption increased by 0.4%.
• 7.2% of electricity consumption was from solar. • LFL district cooling rose by 3.4%.
• 13 EV charging stations. • Solar generation increased by 15.5%, contributing to 7.7% of total electricity
consumption compared to 7.2% in 2023.
• 17 EV charging stations added, totalling to 30 EV charging stations across districts.
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Material Topic 2023 Achievements 2024 Achievements
Pillar 5 – Environment
12 Water • Water intensity – 0.86 m [3] /m [2] • LFL water consumption increased by 13.8%.
Efficiency • TSE usage – 1.0 million m³. • TSE usage – 0.6 million m³.
13 Waste • 1.5 kg/sq. ft. Waste intensity. • 1.6 kg/sq. ft. Waste intensity (12% increase between 2023-24).
Management • 4.3% of waste is diverted to Waste-to-Energy plant. • 36.3% waste diverted to Waste-to-Energy plant.
• The Dubai Can initiative saved 670,174 plastic bottles. • Dubai Can initiative active.
• E-waste sculpture installed in Dubai Internet City.
14 GHG • Scope 1 – 1,040.9 tonnes CO2e. • Scope 1 emissions includes Diesel and refrigerants used in cooling systems,
Emissions • Scope 2 – 39,665.9 tonnes CO2e. increased by 56.9%.
• Scope 3 – 18,016.9 tonnes CO2e. • Scope 2 emissions, including electricity and district cooling consumption in offices and common areas, decreased by 2.5% reflecting the strength of energy
efficiency measures.
• Scope 3 emissions decreased by 21.3%, reflecting impact of diverting waste to
waste-to-energy plants.
15 Sustainable • 8 new LEED Gold Certifications. • 12 new LEED certified buildings, of which 4 Platinum and 8 Gold certified.
Buildings • Total 30 buildings LEED-certified by TECOM Group, • Total 43 LEED-certified buildings, of which 6 Platinum, 30 Gold and 7 Silver certified.
of which 2 Platinum, 22 Gold and 6 Silver certified. • 49% of the Commercial portfolio is LEED certified.
• 1 building LEED certified by customer.
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Corporate Governance

Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

Governance and Risk

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This pillar emphasises the rigorous management of business practices, governance procedures, and ethical conduct, forming the cornerstone of organisational integrity and sustainability commitments.

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1. Ethical Business Practices and Policies 2. Robust Governance
Commitments Initiatives and Achievements Commitments Initiatives and Achievements
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• We continue to uphold
the highest standards of
ethical conduct, ensuring
compliance with all
applicable laws and
regulations and meeting
stakeholder expectations.
• We strive to implement
and monitor the tenets
of our Code of Conduct,
including Business Ethics,
Regulatory Compliance,
Market Misconduct, Anti-
bribery and Corruption,
Anti-competitive
Behaviour, Conflict of
Interest, Gifts, Responsible
Communication, Anti-
money Laundering,
and Data Protection.
Approved by the Audit Committee, the Code of Conduct
outlines ethical standards for employees, covering business
ethics, regulatory compliance, anti-bribery and corruption,
conflict of interest, and data protection. It provides clear
guidance to help employees navigate ethical dilemmas
and comply with internal policies and legal requirements.
To support ethical transparency, a confidential
whistleblowing hotline is maintained. This hotline offers a
secure and anonymous channel for reporting concerns or
misconduct, reinforcing a commitment to accountability
and integrity within operations. Grievance procedures
outlined in the Human Capital Manual provide employees
with a formal process for raising and resolving workplace
concerns. These mechanisms uphold a fair and constructive
environment, reflecting a dedication to ethical integrity
and employee support. Employees are informed of
the Code of Conduct requirements upon joining the
Company by signing off on the Code of Conduct. Regular
internal refreshers, including internal communications, are
provided to reinforce our expectations. Employees must
acknowledge the Code of Conduct annually, reinforcing
our commitment to integrity and ethical practices.

• We ensure that
robust governance
forms the
cornerstone of our
corporate strategy,
instilling trust and
confidence in
our investors and
partners while
facilitating long-
term growth.
• We establish our
ESG Governance
framework
to integrate
sustainability
seamlessly into
our decision-
making process.
These initiatives highlight TECOM Group’s commitment to
fostering resilience and delivering long-term positive impacts in
its communities. TECOM Group’s Governance Framework ensures
compliance with applicable rules, regulations, and international
best practices. It emphasises Accountability, Responsibility,
Fairness, and Transparency, as outlined in the Governance Guide,
to provide strategic guidance, effective management oversight,
and Board accountability to the Company and shareholders.
Aligned with its commitment to robust governance, TECOM
Group regularly updates key policies within the framework
to ensure compliance with the revised Governance Guide.
Guided by the Board Charter, the Board oversees the
framework’s effectiveness and makes amendments as needed.
The Board holds ultimate responsibility for strategic, financial,
and reputational matters, providing leadership to achieve the
Company’s vision and goals except for those matters reserved
for shareholder approval (see Corporate Governance section).
In 2024, TECOM Group developed an ESG governance
structure and policy to guide strategic ESG integration. This
governance structure is designed to support sustainable growth
by embedding ESG considerations at all levels of the workforce,
reinforcing transparency, accountability, and ethical conduct
across operations (see sections ESG Policy and ESG Governance).

Aligned with its commitment to robust governance, TECOM Group regularly updates key policies within the framework to ensure compliance with the revised Governance Guide. Guided by the Board Charter, the Board oversees the framework’s effectiveness and makes amendments as needed. The Board holds ultimate responsibility for strategic, financial, and reputational matters, providing leadership to achieve the Company’s vision and goals except for those matters reserved for shareholder approval (see Corporate Governance section). In 2024, TECOM Group developed an ESG governance structure and policy to guide strategic ESG integration. This governance structure is designed to support sustainable growth by embedding ESG considerations at all levels of the workforce, reinforcing transparency, accountability, and ethical conduct across operations (see sections ESG Policy and ESG Governance).

Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community

Pillar 4: People

Pillar 5: Environment

3. Prudent Risk Management

4. Responsible Sourcing and Procurement

Commitments Initiatives and Achievements

We manage the impact on our supply chains by incorporating ESG principles into our procurement processes, including prequalification, and collaborate directly with our suppliers to enhance our ESG performance.

TECOM Group remains committed to sourcing products and services in an ethical and sustainable manner, with a focus on minimising the impact of operations on global supply chains. To advance these efforts, thorough assessments of strategic suppliers have been conducted using the industry-leading EcoVadis rating system. This rigorous methodology evaluates key criteria, including environmental performance, labour and human rights, ethics, and sustainable procurement, establishing a high benchmark for sustainability across the supply chain. Clear targets have been set for these assessments over the past two years to drive progress and accountability.

In 2023, significant strides were made to strengthen the risk management approach by embedding ESG considerations within the ERM Framework. This strategic initiative aims to proactively manage risks tied to ESG factors, ensuring a resilient and sustainable operational framework. During the risk assessment process, each identified risk was evaluated through an ESG lens, revealing that 63% carry moderate to significant impacts from an ESG perspective. Additionally, ESG management was recognised as a principal risk, underscoring the importance of ESG risk management. General risk awareness training was conducted extensively for employees in 2024, equipping them with the tools to assess and manage risks effectively. In 2024, TECOM Group introduced Crisis Management and Communication Plans as part of its Business Continuity Management Systems (BCMS). These plans prioritise the safety of employees, customers, and the community while protecting the environment, assets, operations, and reputation. Governed by the Crisis Management Committee and supported by departmental champions, they ensure effective responses and pathways to mitigate impacts during crises. Trainings were also undertaken for Business Continuity and Crisis Management for Responsible Stakeholders.

We ensure that risks are continuously identified, assessed, mitigated, reported, and monitored to safeguard our organisation’s future.
We focus on making our portfolio climate-resilient.
We prioritise integrating women-owned businesses and SMEs, including in5 participants, into our supply chain.
We enhance ESG integration in our Enterprise Risk Management (ERM) Framework.

In 2024, supplier prequalification processes incorporated selected ESG criteria, with bonus points awarded for meeting these requirements. Capacity-building initiatives were also introduced through the EcoVadis Academy, engaging suppliers and procurement employees in training programmes covering topics such as sustainable procurement, labour rights, and environmental management.

Proactive measures have been consistently implemented to address climate-related physical risks, reflecting a commitment to preparedness and resilience. In response to the extreme weather event in April 2024, additional assessments were conducted, resulting in the development of targeted mitigation measures to minimise future impacts. These actions are part of a broader strategy to enhance resilience against intense weather events and ensure operational excellence). Furthermore, routine monitoring of extreme weather conditions and tracking all risks against ESG impacts were also initiated in 2024.

13% 9%

Spend on local Spend on SMEs and women suppliers in 2024 owned businesses

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Pillar 1: Governance & Risk

Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

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Economy This pillar reinforces economic efforts, reflecting a commitment to sustainable growth and resilience.

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5. Economic Performance 6. Incubating Innovation
Commitments Initiatives and Achievements Commitments Initiatives and Achievements
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• Our Group’s Business
Plan integrates ESG
factors into our strategic
objectives.
• We align with global ESG
regulatory requirements
and best practices, such
as SFDR and GRESB
assessments, and
diligently work towards
achieving these objectives
in the most effective
manner possible.
The financial performance in 2024 highlights
TECOM Group’s robust economic resilience
and operational efficiency. Total revenue reached
AED 2.40 billion, reflecting market strength,
while EBITDA of AED 1.85 billion demonstrates
prudent cost management. Net profit of
AED 1.23 billion further underscores a
commitment to delivering stakeholder value
and maintaining a solid financial foundation for
future growth. These indicators reflect a sound
financial strategy, reinforcing the Group’s position
as a sustainable and resilient business.
The 2024-28 Business Plan integrates sustainability
by embedding ESG factors within core strategic
objectives, highlighting the vital role of ESG in
the long-term vision. In 2024, the ESG strategy
and initiatives were aligned with the Business
Plan, establishing a strong foundation for effective
implementation and enhanced stakeholder
satisfaction.

• We provide support
to the companies
in our incubation
programme, in5,
through training,
mentorship, and
advisory services
aimed at enhancing
their stability
and success.
• We strive to enhance
their access to
investment and
development
opportunities,
including exposure
to our own supply
chain ecosystem
and subsequently,
our customer
networks as well.
Since its launch in 2013, the in5 incubator has become a cornerstone of
TECOM Group’s commitment to fostering innovation and creativity within
the entrepreneurship sector in the UAE. Providing a nurturing environment
with mentorship, advisory services, and access to essential facilities, in5
has empowered a diverse community of students, entrepreneurs, and
professionals across key sectors like technology, media, design, and science.
In 2024, in5 supported 410 start-ups, of which 30% was owned by women,
reflecting its focus on inclusivity and diversity. Over 160 new start-ups
have registered this year, demonstrating the significant appetite for in5’s
incubation services and its ongoing support for the entrepreneurial
ecosystem in the UAE. The addition of in5 Science and D/Quarters at Dubai
Science Park expanded support for innovation by providing access to a
world-class community of researchers and industry leaders and co-working
spaces for entrepreneurs, SMEs, and multinational corporations.
In 2024, in5 hosted 130 tailored events for start-ups, focusing on skill
development, networking, funding, and global exposure to support
entrepreneurial growth (See case study in5 events). in5 also nurtures
innovative start-ups driving sustainability in construction, renewable energy,
food waste, and the sharing economy (see case study Incubating Sustainable
Start-ups).
Since its inception, in5 has supported over 1,000 start-ups, raising AED 7.8
billion in funding. These achievements underscore the dedication to creating
an inclusive, thriving entrepreneurial ecosystem that drives economic growth

Since its inception, in5 has supported over 1,000 start-ups, raising AED 7.8 billion in funding. These achievements underscore the dedication to creating an inclusive, thriving entrepreneurial ecosystem that drives economic growth while promoting diversity and social impact.

Pillar 1: Governance & Risk Pillar 2: Economy

Pillar 3: Community

Pillar 4: People

Pillar 5: Environment

Case study Incubating Innovation

in5 events

The dynamic start-up incubator, in5, curates an array of events designed to foster innovation, skill development, and networking within a thriving community of entrepreneurs.

In 2023, 102 events were organised for in5 start-ups, with an additional 130 held in 2024, each tailored to address the unique needs of startups. These events cover essential themes for entrepreneurial growth, including skill development sessions that enhance technical capabilities and technology and industry insights to keep start-ups at the forefront of innovation.

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Entrepreneurial education and networking events connect founders with industry leaders and potential collaborators, while funding and investment workshops provide crucial links to investors and mentors. Creativity and branding sessions help start-ups refine their brand storytelling and aesthetics, and global exposure opportunities offer insights into international markets and foster partnerships. This tailored support equips in5 start-ups to navigate the challenges of entrepreneurship effectively, preparing them to thrive in an ever-evolving business landscape.

130 events held in 2024, each tailored to address the unique needs of start-ups

Case study Incubating Innovation

Incubating Sustainable Start-ups At in5, start-ups that champion sustainability and address critical environmental challenges through innovative solutions are nurtured and supported.

One such venture, Bilquis, is sector by connecting consumers with revolutionising the construction industry local retailers offering surplus food at by developing green cement and discounted prices, fostering sustainable concrete, reducing CO2 emissions and consumption practices. Finally, Swoop promoting sustainable building practices. champions the sharing economy through Similarly, CODE2 supports the transition a rental marketplace that encourages to Net Zero with a digital platform that resource sharing and reduces excess tracks and incentivises sustainable actions consumption. among businesses and customers, Through the comprehensive support accelerating carbon reduction efforts.

Through the comprehensive support accelerating carbon reduction efforts. provided by in5, these pioneering startThe renewable energy platform Orisun ups are empowered to drive positive connects developers and investors to environmental impact and advance a facilitate clean energy growth, creating sustainable future across industries. accessible opportunities for sustainable development. In the food sector. Takkul minimises food waste in the food

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Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

Pillar 1: Governance & Risk

Pillar 2: Economy

Pillar 3: Community

Pillar 4: People

Pillar 5: Environment

7. Customer Centricity

Commitments Initiatives and Achievements

We prioritise the needs and aspirations of our customers by routinely collecting feedback through our Customer Experience (CX) Index, incorporating it into our value proposition, and working towards enhancing our CX.
Customers are central to operational success, and their experience and feedback form the foundation of business strategy. Understanding their needs and expectations enables continuous improvement in facilities, services, and engagement initiatives. Engagement occurs at several key touchpoints, including post-transaction surveys for onboarding, fit-out, customer care, government services portal (axs), facility management, lease renewal terminations as well as industrial land lease and hire of advertising and venue spaces. In 2023, engagement efforts were expanded through in-depth interviews across business districts, providing a comprehensive understanding of customer perspectives across diverse segments and communities.
By leveraging partner input, we will improve our facilities, services, and value chains and foster greater collaboration within our network.
In 2024, to maximise reach, in-depth interviews were replaced with an annual online survey focusing on perceived service quality, sustainability and wellbeing (see case study – Strategic Feedback from Customers). In 2024, the evaluation programme was further broadened with a Mystery Customer study to assess the standard of service delivered to prospective customers. In addition, as in previous years, 928 face-to-face interviews were conducted with those working or studying in our communities to gauge their experience of the available facilities and services as well as uncover any unmet needs.
We remain committed to incorporating wellbeing into our Built-to-Suit business segment and refurbishments to ensure the provision of healthy and sustainable spaces.

In response to this feedback, action plans were developed across departments to enhance service quality, sustainability, and customer well-being. Feedback is seamlessly integrated into the CX Index, a metric measuring satisfaction levels and the likelihood of positive referrals.

At 87.1%, the 2024 CX Index remained broadly consistent with that of the previous years, reflecting ongoing efforts to sustain a consistently high level of customer experience by reinforcing areas of excellence while promptly addressing areas for improvement.

A partnership with Siemens was also undertaken to equip customers with advanced tools and sustainability initiatives, driving operational efficiency and competitiveness (see case study – Empowering Customers through Digital Transformation). Additionally, Investments of AED 100 million from 2022-24 were undertaken to improve outdoor environments with cycle tracks, playgrounds, greenery, and enhanced facilities to promote community well-being and sustainability. These efforts underscore TECOM Group’s commitment to fostering innovation, sustainable growth, and vibrant urban environments for its customers and communities (see case study – Enhancing Outdoor Spaces for Well-being). These initiatives reflect TECOM Group’s unwavering commitment to prioritising the needs and aspirations of its customers by continuously enhancing the customer experience and value proposition.

Case study Case study Customer Centricity Customer Centricity

Strategic Feedback from Customers

Empowering Customers through Digital Transformation

Reaffirming its commitment to improving customer satisfaction and driving industry excellence, Dubai Industrial City signed a memorandum of understanding (MoU) with Siemens.

In 2023, in-depth interviews across business districts provided insights into customer perspectives, with feedback directly contributing to the CX Index.

This partnership delivers transformative Factory Roadmaps, sustainability benefits, including Industrial Technology initiatives, and capacity-building Transformation Index (ITTI) Assessments programmes, enhancing operational under the UAE’s Ministry of Industry and efficiency and competitiveness. This Advanced Technology (MoIAT). The represents another step in Dubai collaboration also provides customers Industrial City’s mission to support access to Siemens’ Green Lean Digital sustainable industrial growth in the UAE.

the benefits of community events, and alignment between facilities and customer investment. By addressing these key topics, opportunities to enhance services and expand offerings were identified, ensuring alignment with customer needs and expectations.

In 2024, targeted surveys were conducted with company leadership across all districts, gathering input on perceived service quality, community engagement, sustainability practices, and well-being. These surveys offered insights into management accessibility,

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Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

Case study Customer Centricity

Enhancing Outdoor Spaces for Well-being

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In a continued commitment to creating sustainable and vibrant urban spaces, TECOM Group invested AED 16.4 million across its districts in 2024, with a total investment of approximate AED 100 million from 2022 to 2024, to enhance outdoor environments and improve community well-being.

A major highlight was the addition of a sixkilometre cycle track in Dubai International Academic City, promoting active lifestyles and sustainable mobility options. In Dubai Science Park and Dubai Studio City, children’s playgrounds were installed, offering safe and engaging environments for younger community members. Additionally, sports courts and entertainment facilities were introduced in various TECOM Group areas, encouraging physical activity and fostering community interaction. Modern shades and outdoor furniture were installed across various locations, creating shaded areas for relaxation and comfort. Several urban shelters were also added, offering protection from the elements while encouraging greater use of outdoor spaces. These upgrades were complemented by the installation of water features in landscaped areas to cool down the surrounding temperature, creating a more pleasant and enjoyable atmosphere for visitors.

Parking facilities were also upgraded, with the addition of more parking spaces to accommodate the growing needs of customers and visitors. Major works were undertaken at key locations, including comprehensive upgrades to playgrounds, the addition of new outdoor furniture, and specialised landscaping enhancements at warehouse sites. These improvements enhanced industrial areas’ aesthetics while contributing to a greener environment.

These initiatives reflect TECOM Group’s dedication to sustainable urban development by transforming outdoor areas into thoughtfully designed, multifunctional spaces that promote community engagement, leisure, and well-being. Through continued investments in landscaping, modern infrastructure, and greenery, TECOM Group remains committed to fostering a vibrant, accessible, and sustainable urban ecosystem for its customers and visitors.

This investment focused on several key landscaping and infrastructure upgrades aimed at fostering more inviting, comfortable, and sustainable spaces. Efforts included expanding greenery across the districts with native ghaf trees, hedges, and ground covers, as well as increasing pocket parks to provide serene spaces for relaxation and informal gatherings, offering customers and visitors peaceful spaces within vibrant urban settings.

Lighting upgrades were implemented to extend outdoor usability in the evenings, including building facade lighting, creating visually striking landmarks that contribute to the overall ambiance of the districts.

Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community

Pillar 4: People

Pillar 5: Environment

Community

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This pillar reflects our dedication to actively improving and empowering the communities where we operate.

8. Investing in Local Communities

Commitments Initiatives and Achievements

In 2024, TECOM Group demonstrated its commitment to meaningful community impact through various CSR initiatives focused on well-being and sustainability. With a dedicated allocation of AED 1.4 million, these efforts supported multiple projects and donations aligned with a vision for community enhancement. Annually, the ‘WeWalk’ walkathon is hosted at Dubai Science Park – supporting the Dubai Autism Centre in 2023 and raising awareness for diabetes in 2024 (see case study – WeWalk 2024: Show up for Diabetes). For two years, partnerships with Pink Caravan have promoted breast cancer awareness (see case study – Pink Caravan).

Since 2023, TECOM Group has partnered with Team AngelWolf to promote inclusion and accessibility for People of Determination, aligning with the UAE’s commitment to inclusivity. As part of this partnership, Nick Watson, founder of Team AngelWolf, has hosted the annual WeWalk initiative for the past two years, and Team AngelWolf recently engaged TECOM Group employees at a town hall, sharing insights on fostering inclusivity and building empathy to drive societal change.

We continue to extend beyond the confines of our buildings, actively enhancing our communities to become more vibrant and sustainable.
We are committed to investing in CSR initiatives that yield impact, engage our customers, and contribute to community development.

We also prioritised fostering an engaging and vibrant environment for our customers through a diverse calendar of events. These include industry-focused initiatives such as Creative Brunch, Backyard Talks, and Step Conferences, where customers can participate in panel discussions, keynote sessions, and educational opportunities. Additionally, we organise community-driven activities to celebrate key public holidays and occasions, offering a mix of interactive experiences, F&B offerings, and Instagram-worthy moments during events like UAE National Day, Pink October, Movember, and more.

Employee engagement in community service was highlighted by the distribution of 12,000 Iftar meals during Ramadan, supporting local well-being. In 2024, “The Good Store,” a virtual and ‘phygital’ donation platform launched in collaboration with Emirates Red Crescent, raised AED 133,695 in 2023-24 to aid those in need (see case study – The Good Store).

We prioritise specific areas where we can generate significant impact, based on local requirements and our business model, and invest in these areas.

These initiatives highlight TECOM Group’s commitment to fostering resilience and delivering long-term positive impacts in its communities.

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Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

Case study Case study Community Community

WeWalk 2024: Show up for Diabetes

Pink Caravan

Aligned with the commitment to community health, we continued our partnership with the Pink Caravan initiative in 2023 and 2024.

The fifth edition of the WeWalk walkathon, dedicated to raising awareness about diabetes, was hosted at Dubai Science Park in November 2024.

in ticket sales, AED 200,000 in cash donations, AED 300,000 in media sponsorship, and AED 100,000 inkind contributions. Communication efforts expanded WeWalk’s community impact, achieving a reach of 6.91 million impressions and an ad value exceeding of AED 5.8 million. Extensive media coverage across top-tier outlets has positioned WeWalk as one of Dubai and the UAE’s most impactful charitable events, strengthening its role in fostering health and wellness in the community.

Pink Caravan, established in 2011 under the patronage of the Ruler of Sharjah, raises awareness about breast cancer and provides critical screening and early detection services. Its hallmark event, the Pink Caravan Ride, travels across all seven emirates to ensure outreach to remote communities. It is supported by a year-round mobile mammography unit offering advanced screening services to underserved areas.

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Organised in collaboration with the Dubai Charity Association, the event combined awareness with an engaging, family-friendly day that included fitness sessions, live performances, games, and a vibrant parade. The initiative underscored a commitment to community well-being by promoting physical activity while addressing a significant health issue. Conducted annually, WeWalk has grown into a prominent platform for social responsibility. In 2024, the event welcomed more than 2,000 attendees, 13 sponsors, and 70 volunteers, raising AED 225,749. This included AED 12,910

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As part of this partnership, Pink Caravan’s mobile mammography units were facilitated across several business districts, providing accessible screening opportunities for employees, customers, and the broader community. These efforts enabled 418 individuals to access screening services during this period, contributing to the UAE’s vision of improving health outcomes through awareness, early detection, and timely intervention.

Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community

Pillar 4: People Pillar 5: Environment

Case study Community

The Good Store

In partnership with Emirates Red Crescent, TECOM Group reintroduced The Good Store in 2024, offering a seamless phygital donation platform that allows individuals and organisations to donate essential items, such as Ramadan food boxes, Iftar meals, Eid clothing, and health packages.

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AED 133,695

6 awards won at 2023 Middle East PR Association (MEPRA) Awards

raised for those in need in 2023-2024

Taking over grocery stores, installing popThe Good Store campaign won six awards up shops, and with roaming shopping at the 2023 Middle East PR Association trollies, The Good Store opened in various (MEPRA) Awards, including four Golds forms in 2023 across 12 high-density for ‘Best Business to Business Campaign’, communities to unite Dubai’s residents ‘Best Retail Campaign’, ‘Best Use of – including TECOM Group’s 137,000 Content/Creative/Editorial/Video’ and strong community – as a force for good ‘Best Sustainability, Social Responsibility during Ramadan. The campaign had a or ESG Campaign’; one Silver for ‘Best considerable impact, reaching 8.9 million Campaign in the UAE’ and one Bronze for people and raising AED 133,695 for those ‘Best Use of Digital Communications’ in need in 2023-24.

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Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

People

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This pillar underscores the focus on nurturing the organisation’s most valuable asset – its people. It embodies a commitment to creating a workplace culture that prioritises employee well-being, growth, and development.

9. Safe and Healthy Workspaces

Initiatives and Achievements

Commitments

TECOM Group’s Health and Safety system, certified to ISO 45001 standards, aligns with internationally recognised occupational health and safety practices. The system ensures comprehensive coverage, applying to 100% of employees, suppliers, and properties, including spaces utilised by customers. The HSE Management System, developed around the Plan-Do-Check-Act (PDCA) cycle, emphasises continual improvement. The requirements are clearly outlined and implemented through the Risk/ Environmental Management Procedure and the Competency, Training, and Awareness Procedure. Key elements include robust risk identification and hazard management processes, with work-related hazards assessed through routine and non-routine evaluations, and controls implemented to eliminate or minimise risks.

We are dedicated to enhancing employee well-being and satisfaction by continually improving our Health & Safety standards and prioritising employee inclusion and well-being initiatives.

In 2024, no workplace incidents were reported, and ongoing measures were implemented to maintain a safe and incident-free environment. Regular H&S training is provided to employees to ensure awareness and competency. Additionally, the system complies with all relevant legal and regulatory requirements, ensuring that occupational health and safety remain a priority.

We ensure that our Health & Safety procedures align with the best available standards, such as ISO 45001, conduct routine training and participate in annual audits.

Health and safety management extends to suppliers, ensuring they meet high standards through various oversight mechanisms. Annual audits and frequent on-site inspections are conducted to verify compliance with H&S requirements. In 2024, 100% of suppliers underwent audits or inspections, and H&S training was delivered to supplier teams. A work permit system is implemented for high-risk activities, ensuring enhanced oversight and minimising potential hazards. The organisation actively monitors supplier health and safety practices, and there were no incidents of non-compliance with supplier health and safety standards in 2024.

We continue to establish a culture of inclusion by implementing our Diversity, Equality and Inclusion (DEI) Strategy through initiatives such as blind recruitment processes, nondiscriminative promotion opportunities, and paternal leave.

In 2024, the Injury Rate (IR), Lost Day Rate (LDR), Accident Severity Rate (ASR), and Absentee Rate (AR) were all 0, with no work-related fatalities, reflecting the effectiveness of TECOM Group’s commitment to maintaining a safe and healthy workplace. Comprehensive incident reporting and investigation mechanisms are in place to identify root causes and implement corrective and preventive actions.

Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People

Pillar 5: Environment

9. Safe and Healthy Workspaces continued

Initiatives and Achievements

The organisation prioritises customers’ health and safety through routine monitoring, inspections, and clear guidelines to ensure safe and sustainable environments. Fire and Life Safety (FLS) requirements are routinely monitored and inspected across all properties to maintain a safe environment. All customers are provided with a community guideline, which they must acknowledge.

Employee well-being remains a priority, and in 2024, a cross-functional team was established to promote health, wellness, and work-life balance. A survey of employees highlighted strong interest in wellness initiatives like yoga, functional training, workshops, after-hours activities, and sports tournaments. Based on these insights, the team developed a Wellness Programme featuring monthly fitness sessions, wellness workshops, and an annual sports tournament. The programme will enhance employee well-being, foster community, and boost satisfaction, with impact monitoring planned throughout the year.

This guideline outlines mandatory and best practices for emergency management, operational risk management, and environmental considerations such as water and waste management. A work permit system monitors potential risks within customer activities. In 2024, 1,286 inspections were carried out across all properties, with 100% of assets assessed for health and safety impacts.

Employee satisfaction initiatives are informed by Gallup surveys, which provide insights into workforce needs and aspirations. These large-scale surveys have revealed factors contributing to a fulfilling work environment, resulting in tailored action plans. Key initiatives include increasing the frequency of team meetings to improve collaboration and implementing mentoring programmes to support professional growth.

Rigorous monitoring and continual improvement measures are deployed to maintain high H&S standards. Performance is tracked through regular audits and assessments, ensuring compliance with ISO 45001 standards. In 2024, two audits were conducted, and a management review was completed to evaluate system performance and identify areas for improvement. Lessons learned from incidents and audits drive enhancements, ensuring the health and safety system evolves to meet TECOM Group’s health and safety objectives.

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100%
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In pursuing gender balance, supportive policies uphold equality and inclusivity in the workplace. Internal targets have been set to ensure strong female representation in the workforce, with women currently making up one-third of the team. Through blind recruitment processes and policies such as paternal leave, there is a commitment to fostering a diverse and inclusive work environment.

injury rate assets assessed for H&S

100% ISO 45001 certified

suppliers undergo audits or inspections

We are implementing targeted initiatives and policies to improve employee well-being and ensure a healthy work-life balance.

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10. Training and Development

Commitments Initiatives and Achievements

We are committed to At TECOM Group, employee training is structured through fostering an innovative and a rigorous training needs analysis to ensure programmes engaging work environment effectively address key development areas across the where every employee can organisation. Annual training targets are set to align with reach their full potential. industry best practices, aiming to increase training hours and maximise impact steadily.
We invest in employee training throughout the year, aiming to increase our training hours annually to align with industry best practices.
In 2023, 4,200 training hours were achieved – nearly 58%
year, aiming to increase higher than the previous year. This increase, alongside our training hours annually a 60.9% rise in average training hours per employee, to align with industry underscores the commitment to fostering an environment best practices. of continuous learning and development. Employees
• We commit to offering participated in over 125 training topics, including career accelerator “Collaborate for Success,” “Conflict Resolution,” “Coaching programmes for highSkills for Managers,” and “The Art of Presenting and Public performing employees, Speaking,” enhancing both technical and interpersonal skills. providing executive Building on this progress, 2024 saw continued investment in
education for our targeted development programmes, achieving an average
leadership team, and of 20.3 training hours per employee, a 32.9% increase
actively working to from the previous year’s 15.2 hours. By aligning training
support youth employment with identified needs and setting ambitious goals, TECOM
within our networks.

Building on this progress, 2024 saw continued investment in targeted development programmes, achieving an average of 20.3 training hours per employee, a 32.9% increase from the previous year’s 15.2 hours. By aligning training with identified needs and setting ambitious goals, TECOM Group ensures that employees are equipped to reach their full potential.

20.3 Average hours of training per employee

Case study People

ESG Trainings

In alignment with the commitment to responsible business practices, a specialised training series focusing on key elements of ESG principles was introduced for the employees.

This programme was designed Lastly, the Governance module to equip employees with deep delved into regulatory compliance, knowledge and actionable insights ethical standards, and responsible to drive ESG initiatives across decision-making, ensuring departments. employees understand and promote transparency and accountability. The ESG training series consisted of three comprehensive modules. This training series allows The Environmental module covered employees to contribute to ESG sustainable practices, waste efforts within their respective management, and carbon reduction areas, enhancing TECOM Group’s strategies, preparing employees to commitment to sustainability lead and support green initiatives and responsible governance. within their teams. The Social This initiative underscores the module focused on diversity, equity, dedication to integrating ESG and inclusion (DEI), employee wellprinciples into every level of the being, and community engagement, organisation, ensuring a positive enabling employees to foster a impact across environmental, social, culture of inclusion and positive and governance aspects. social impact.

Pillar 1: Governance & Risk

Pillar 2: Economy

Pillar 3: Community

Pillar 4: People Pillar 5: Environment

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Environment

This pillar reflects a strong commitment to environmental stewardship, focusing on initiatives that enhance energy and water efficiency, integrate renewable energy, embed sustainable building practices, promote resource management and circular economy principles, and advance sustainability across operations to reduce emissions.

11. Energy Efficiency

Commitments Initiatives and Achievements

We remain steadfast in our commitment to environmental stewardship and actively pursue initiatives to enhance our energy efficiency, expand our use of renewable energy, and increase the ratio of green buildings within our built portfolio.

• We strive to foster a culture of environmental responsibility among our customers, collaborating closely with them to minimise our collective ecological footprint and advance our shared sustainability goals.

The Dubai Clean Energy Strategy 2030 aims to position Dubai as a global leader in clean energy, targeting a 75% clean energy mix by 2050. Built on pillars of infrastructure, legislation, funding, skills development, and an eco-friendly energy mix, this strategy guides TECOM Group’s approach to sustainability. Aligned with the 2030 Dubai Integrated Energy Strategy, TECOM Group is committed to reducing energy consumption and environmental impact. This is achieved through robust systems to monitor and track energy usage against internal targets, enabling optimisation of operations using best-in-class technologies to reduce energy consumption and carbon emissions.

We leverage innovative technologies and best practices to reduce the energy intensity of our built portfolio and increase savings.
We undertake new developments and
implement retrofits in line with sustainable design, construction, operation, and end-oflife principles.

Significant progress was recorded in 2024 across key energy metrics. Electricity consumption and electricity intensity increased by 7.6% in absolute terms, primarily due to the activation of new operations in Dubai Industrial City. However, like-for-like electricity consumption decreased by 0.4%, demonstrating consistency despite high occupancy and increased footfall, reflecting the effectiveness of strong energy management measures.

We continue to invest in renewable energy projects in accordance with regulations.
We implement retrofits to increase the proportion of green buildings in our portfolio.
We support green transportation by providing Electric Vehicle (EV) chargers and bicycle lanes.

District cooling usage rose by 6.1%, with a like-for-like increase of 3.4% driven by higher occupancy levels across TECOM Group properties. LPG consumption saw a substantial increase of 70.0%, and like-for-like consumption increased by 10.8%, attributed to the activation of new operations in Dubai Industrial City. Diesel consumption was consistent, with a 0.4% change from last year.

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Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

11. Energy Efficiency continued

Initiatives and Achievements

Energy efficiency achievements included a 11.8% energy savings in 2023 and 2024 realised through a major retrofit project initiated in 2022. Undertaken in collaboration with an ESCO partner, the project spanned multiple business districts and earned the ‘Exemplary Retrofit Project’ award from the Dubai Supreme Council of Energy (see case study – Exemplary Retrofit Project Awarded for Energy Innovation and Efficiency). This work also supported LEED certification goals, exemplifying a dedication to sustainable operations.

In addition to energy efficiency efforts, green building practices are prioritised, with 49% of the Commercial portfolio certified to LEED (Leadership in Energy and Environmental Design) (see case study – LEED Certifications). This accomplishment includes 42 buildings certified by TECOM Group and one building certified by a customer, bringing the total to 43 LEED-certified buildings. Our new projects, including Innovation Hub Phase 2 and Phase 3 currently under construction in Dubai Internet City, are designed to align with LEED standards, reflecting our commitment to sustainable and innovative development. Regular assessments help identify opportunities for improving energy and water efficiency, while targeted retrofits, in collaboration with ESCOs, have expanded the portfolio of green buildings. This focus is complemented by maintaining rigorous Health & Safety standards, ensuring safe and efficient environments for all occupants.

Renewable energy capacity continues to grow, with two new solar installations completed in Dubai Industrial City in 2024, increasing total capacity to 10.05 MWp. In 2024, solar accounted for 7.7% of electricity consumption (see case study – Improving Solar Capacities). Solar initiatives remain critical to the low-carbon strategy, further reinforcing the commitment to sustainable growth.

To support green transportation, 17 EV charging stations were added in 2024, bringing the total to 30, across seven districts.

By integrating energy efficiency, renewables, and green building principles, TECOM Group reaffirms its commitment to sustainability and operational excellence, supporting Dubai’s ambitious environmental goals.

-0.4% 49%

30 EV charging stations across districts

reduction in like for like electricity consumption

of commercial portfolio LEED certified with 43 LEED buildings

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Pillar 1: Governance & Risk Pillar 2: Economy

Pillar 3: Community

Pillar 4: People Pillar 5: Environment

Exemplary Retrofit Project Awarded for Energy Innovation and Efficiency

TECOM Group’s pioneering efforts in energy efficiency were recognised in May 2024, when the Dubai Supreme Council of Energy honoured the company with the ‘Exemplary Retrofit Project’ award under the Demand Side Recognition Programme.

This accolade celebrates TECOM Group’s exceptional achievements in driving energy innovation and operational efficiency through cutting-edge retrofit initiatives across its districts.

The implemented measures include replacing outdated chillers with advanced energy-efficient models, optimising chilled water systems, and integrating modern technologies such as motion sensors and Variable Frequency Drives (VFDs). These efforts have led to significant energy savings of 11.8% in 2023 and 2024, reflecting TECOM Group’s commitment to sustainability, cost-effectiveness, and innovation.

The energy savings project, initiated in energy savings of 11.8% in 2023 and 2024, 2022, represents an investment of over reflecting TECOM Group’s commitment to AED 43 million. Its comprehensive focus sustainability, cost-effectiveness, and innovation. is on reducing energy consumption and optimising infrastructure. Spanning key Receiving this award underscores TECOM destinations such as Dubai Internet City, Group’s leadership in aligning with Dubai’s Dubai Media City, Dubai Knowledge Park, sustainability vision. It demonstrates how Dubai Outsource City, Dubai International retrofitting projects can deliver measurable Academic City, Dubai Studio City, Dubai environmental benefits while maintaining Science Park, Dubai Production City, operational excellence. The recognition further and Dubai Industrial City, the project cements TECOM Group’s position as a leader in has transformed TECOM Group’s sustainable development and energy efficiency. Dubai International Academic City operational sustainability.

Case study Energy Efficiency

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Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

Case study Energy Efficiency

Improving Solar Capacities

In 2024, TECOM Group further advanced its renewable energy efforts by completing two additional solar projects in Dubai Industrial City, adding 1.7 MWp to its capacity.

a resilient, low-carbon future while progressively expanding its renewable energy capacity.

The extra capacity brings the Group’s a resilient, low-carbon future while total renewable energy capacity progressively expanding its renewable to 10.05 MWp, up from 8.34 MWp energy capacity. in 2023. These projects follow the successful 2023 installation of a 0.576 MWp solar plant at Dubai Science Park in 2023. Solar energy has consistently accounted for an average of 7% of electricity consumption across the Group’s portfolio over the past two years. Solar power is central to TECOM Group’s sustainability strategy and critical for reducing carbon emissions. Through strategic partnerships with leading industry experts, TECOM Group implements high-impact projects aligning with national and 7.7% global sustainability objectives. These solar initiatives underscore the Group’s electricity consumption from solar ongoing commitment to building

Case study Energy Efficiency

LEED Certifications

In 2024, we secured 12 LEED (Leadership in Energy and Environmental Design) certifications, a globally recognised sustainable building design and operations standard.

This brings the total number of LEEDcertified buildings within TECOM Group’s portfolio to 43, with 49% of the Commercial portfolio now LEED-certified underscoring the company’s commitment to sustainability and environmental stewardship. The certifications, including LEED Platinum and LEED Gold, were awarded to Dubai Internet City, Dubai Media City, Dubai Production City, and Dubai Science Park buildings. This achievement highlights TECOM Group’s commitment to sustainability and operational excellence, contributing to global climate change mitigation. Supported by TECOM Group’s energy savings initiatives, these certifications reflect the company’s forward-thinking strategy to enhance building efficiency and secure a resilient, sustainable built Dubai Science Park environment for the future.

Pillar 1: Governance & Risk Pillar 2: Economy

Pillar 3: Community

Pillar 4: People

Pillar 5: Environment

12. Water Efficiency

13. Waste Management

Commitments Initiatives and Achievements • We strive to enhance resource management, minimise waste and promote circularity within improving recycling and diversion rates. our built portfolio.

Commitments Initiatives and Achievements • We continue to Aligned with the commitment to responsible water management, make efforts towards TECOM Group continues to implementing initiatives that improving our water enhance water efficiency and reduce the overall water footprint. efficiency and reducing Using advanced water-saving technologies and strengthened our water footprint water audits, we aim to sustainably manage water resources and by leveraging waterreduce consumption. saving technologies In 2022, several water conservation measures were introduced, and implementing including the installation of water displacement bags in flush practices that encourage tanks, flow reducers at wash basins and shataffs, and a greywater responsible water treatment plant at D3. In 2023, absolute water consumption rose management.

Waste generation, recycling, and landfill diversion rates are tracked and monitored through a service provider dashboard, with a goal to reduce waste intensity while improving recycling and diversion rates.

In 2024, the Group recycled 321 tonnes of waste, marking a 36.6% increase from 2023. A total of 36.3% of general waste was diverted to Waste-to-Energy plants, including waste diverted to the Dubai Waste Management Centre (DWMC). The DWMC converts 45% of Dubai’s municipal solid waste into energy, powering approximately 2% of the city’s homes. Waste sent to landfill accounted for 62.8% of total waste, reflecting a 33.9% reduction from 2023. On a like-for-like basis, waste recycling increased by 36.1%, while the proportion of general waste diverted to Waste-to-Energy plants increased to 40.8%.

• We continue to monitor our waste generation, recycling, and landfill diversion rates and implement measures to bolster these efforts.

In 2022, several water conservation measures were introduced, including the installation of water displacement bags in flush tanks, flow reducers at wash basins and shataffs, and a greywater treatment plant at D3. In 2023, absolute water consumption rose by 8.3%, driven by the installation of Adiabatic Cooling systems across four districts. These systems increased water usage but contributed significantly to energy savings. Higher footfall and occupancy further contributed to the increase, a trend that continued into 2024. In 2024, new operations were activated, resulting in a 26.6% increase in absolute water consumption and water intensity, with a like-for-like increase of 13.8%.

• We work towards collaborating closely with our customers to optimise waste management practices.

• We raise awareness among our stakeholders to support these efforts.

As part of our sustainability efforts, the Dubai Can water fountains were implemented across multiple locations. Wherever feasible, we reuse furniture through repairs to extend its lifespan, thereby reducing waste and minimising resource consumption. TECOM Group’s commitment to fostering a circular economy and sustainable resource management.

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Corporate Governance

Pillar 1: Governance & Risk Pillar 2: Economy Pillar 3: Community Pillar 4: People Pillar 5: Environment

14. Reducing Greenhouse Gas (GHG) Emissions

Commitments Initiatives and Achievements

The UAE’s Net Zero 2050 Strategy is a transformative national plan to drive the UAE towards net-zero emissions by 2050. This initiative seeks to create jobs, boost GDP, and foster sustainability across key sectors through more than 25 programmes supported by climate finance, technology, and skills development. Aligned with this strategy, TECOM Group remains committed to actively managing and reducing its carbon footprint across operations, contributing to the nation’s efforts towards Net Zero.

We maintain our commitment to reporting our emissions, periodically refining our calculation methodology for accuracy.
We continue to make efforts to reduce emissions directly within our control and primarily focus on energy, water, and waste management.

Investments in climate-related infrastructure are essential for driving long-term sustainability and reducing environmental impact across TECOM Group’s operations. Between 2022-24, AED 67.1 million has been allocated towards climate-related infrastructure, including building retrofits, solar energy systems, and the expansion of EV charging stations. These initiatives aim to enhance energy efficiency, increase renewable energy adoption, and support clean, reinforcing TECOM Group’s commitment to sustainability.

TECOM Group’s emissions management approach includes the tracking and reporting of Scope 1 and 2 emissions, with a strategic focus on expanding Scope 3 emissions coverage. In 2024, the methodology and emission factors for 2023 and 2024 were updated, aligning with GHG Protocol, to enhance the accuracy and transparency of its reporting.

We extend our emissions reduction impact by collaborating with customers and suppliers, particularly in segments like Built-to-Suit, to decrease emissions within our sphere of influence over the long term.
Scope 1 emissions, which include diesel consumption in common areas and refrigerants for cooling systems, increased by 56.9%, driven by expanded operations.
Scope 2 emissions, covering electricity and district cooling consumed in offices and common areas, decreased by 2.5%, reflecting the effectiveness of energy efficiency measures.
As a results, Emissions intensity (Scope 1 and 2) decreased by 1.0%
Scope 3 emissions, currently tracked for water and waste, decreased by 21.3%, primarily due to increased waste diversion to waste-to-energy plants.

TECOM Group remains steadfast in its efforts to reduce emissions and align with global net-zero goals. By broadening emissions tracking, enhancing transparency, and implementing impactful energy efficiency measures, the Group supports the UAE Net Zero 2050 Strategy and strives to create a sustainable future.

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Emissions breakdown 2024
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3%
26%
71%
Scope 1 Scope 3
Scope 2
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Emission breakdown 2023 vs 2024 (kt CO2e)

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18.0
14.2
39.7 38.7
1.0 1.6
’23 ’24
Scope 1 Scope 3
Scope 2
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Forward-looking Statement

Our approach aligns seamlessly with We will enhance energy efficiency, TECOM Group will maintain consistency, national strategies, including the Dubai reduce environmental impact, and transparency, and reliability in measuring Clean Energy Strategy 2030, UAE Net Zero increase resilience to climate risks. We and communicating our ESG impacts. 2050 Strategy, and UAE Green Agenda are committed to fostering a diverse and By adhering to industry reporting and staying 2030, while contributing to global standards inclusive workplace, prioritising the health, aligned with evolving ESG regulations, we such as the United Nations Sustainable safety, and well-being of our employees, are positioning ourselves as a leader in Development Goals (UNSDGs). We are customers, and partners. By nurturing talent sustainable business practices in the UAE dedicated to promoting robust governance and supporting SMEs and women-owned and beyond. Collaboration and partnership and ethical standards, pioneering businesses within our supply chain, we aim to with stakeholders and advocacy for global environmental stewardship in the UAE’s create long-term economic and social value. climate action will remain central to our commercial real estate sector, and creating efforts, ensuring our initiatives contribute sustainable, inclusive spaces that drive to a sustainable future for all. meaningful social impact.

TECOM Group remains steadfast in its commitment to advancing ESG principles across all aspects of our business. Guided by our ESG objectives, we aim to build on strengths, address areas for improvement, and deliver long-term value to stakeholders.

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Dubai Science Park
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Annex – EPRA Index

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EPRA Code Performance Measure Units 2023 2024 Change 2023-24
Elec-Abs Total Electricity consumption kWh 171,204,396 184,229,969 7.6%
Common Areas kWh 82,276,991 81,774,776 -0.6%
Tenant areas kWh 84,685,098 98,752,671 –
TECOM Group offices kWh 4,242,307 3,702,522 -12.7%
Proportion Electricity from Renewables Percentage of total electricity 7.2% 7.7% –
Elec-LfL Like-for-like total electricity consumption kWh 171,024,610 170,372,209 -0.4%
Common Areas kWh 82,138,940 79,195,646 -3.6%
Tenant areas kWh 84,643,363 87,474,041 –
TECOM Group offices kWh 4,242,307 3,702,522 -12.7%
DH&C-Abs Total district cooling consumption kWh 176,329,151 187,025,997 6.1%
Common Areas kWh 60,065,860 61,928,975 3.1%
Tenant areas kWh 102,134,399 111,320,097 –
TECOM Group offices kWh 14,128,891 13,776,926 -2.5%
DH&C-LfL Like-for-like total district cooling consumption kWh 146,317,057 151,345,341 3.4%
Common Areas kWh 59,381,583 61,115,457 2.9%
Tenant areas kWh 72,806,582 76,452,959 –
TECOM Group offices kWh 14,128,891 13,776,926 -2.5%
Fuels-Abs Total Diesel consumption kWh 667,462 670,420 0.4%
Total LPG consumption kWh 297,809 506,156 70.0%
Fuels-LfL Like-for-like total Diesel consumption kWh 667,462 670,420 0.4%
Like-for-like total LPG consumption kWh 178,213 197,448 10.8%
Energy-int Building energy intensity – Electricity kWh/m [2] /per year 119 128 7.6%
Building energy intensity – District Cooling kWh/m [2] /per year 286 304 6.1%
GHG-Dir-Abs Total direct GHG emissions tonnes CO2e 1,040.9 1,632.7 56.9%
GHG-Indir-Abs Total indirect GHG emissions tonnes CO2e 39,665.9 38,683.3 -2.5%
GHG-Int GHG emissions intensity from building energy consumption kgCO2/m [2] /per year 46.8 46.4 -1.0%
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EPRA Code Performance Measure Units 2023 2024 Change 2023-24
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Water-Abs	Total water consumption	m3	1,754,746	2,222,047	26.6%
	Common Areas	m3	324,471	401,629	23.8%
	Tenant areas	m3	1,385,346	1,773,854	–
	TECOM Groupoffices	m3	44,929	46,563	3.6%
Water-LfL	Like-for-like total water consumption	m3	1,201,778	1,367,980	13.8%
	Common Areas	m3	263,771	310,894	17.9%
	Tenant areas	m3	893,077	1,010,522	–
	TECOM Groupoffices	m3	44,929	46,563	3.6%
Water-Int	Buildingwater intensity	m3/m2	0.86	1.09	26.6%
Waste-Abs	% waste diverted to waste to energy plants	Percentage	4.3%	36.3%	745.3%
	% waste recycled	Percentage	0.7%	0.9%	22.2%
	% waste to landfill	Percentage	95.0%	62.8%	-33.9%
Waste-LfL	% waste diverted to waste to energy plants	Percentage	4.7%	40.8%	774.3%
	% waste recycled	Percentage	0.8%	1.0%	26.0%
	% waste to landfill	Percentage	94.6%	58.2%	-38.5%
Cert-Tot	Total no. of TECOM LEED certified buildings as of thatyear	Number	31	43	38.7%
	Platinum	Number	2	6	–
	Gold	Number	22	30	–
	Silver	Number	7	7	–
	Percentage of LEED certifiedportfolio	Percentage	33%	49%	–
Diversity-Emp	No. of female employees	Number	92	97	5.4%
	No. of male employees	Number	183	182	-0.5%
	Percentage of female employees	Percentage	33.4%	34.8%	–
	Proportion of male employees	Percentage	66.6%	65.2%	–
	No. of Senior management employees	Number	21	24	–
	No. of Middle management employees	Number	70	77	–
	No. of staff	Number	184	178	–

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Strategic Report

Annex – EPRA Index continued

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EPRA Code Performance Measure Units 2023 2024 Change 2023-24
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Diversity-Pay
Gender PayRatio: Senior management level
Ratio
0.94
0.91
–
Gender PayRatio: Middle management level
Ratio
1.01
1.00
–
Gender PayRatio: Staff
Ratio
1.09
1.06
–
Gender PayRatio: Average
Ratio
0.92
0.91
-1.0%
Emp-Training
Average traininghoursper employee
Average hours
15.2
20.3
32.9%
Emp-Dev
Employees receiving performance appraisals
Percentage of employees
98%
100%
–
Emp-Turnover
Total employees
Number
275
279
1.5%
New hires
Number
18
22
22.2%
New hires rate
Rate
6.2%
7.4%
–
Turnover
Number
17
18
5.9%
Turnover rate
Rate
6.1%
6.5%
–
H&S-Emp
ISO 45001 coverage for direct and indirect employees
Percentage
100%
100%
–
InjuryRate (IR)
Rate
0
0
–
Lost DayRate (LDR)
Rate
0
0
–
Accident SeverityRate (ASR)
Rate
0
0
–
Absentee Rate (AR)
Rate
0
0
–
Work-Related Fatalities
Rate
0
0
–
H&S-Asset
Asset health and safetyassessments
Percentage of assets
100%
100%
–
H&S-Comp
Asset health and safetycompliance
Number of incidents
0
0
–
Comty-Eng
Percentage of districts where community events
are implemented
Percentage of assets
100%
100%
–
Gov-Board
Composition of the highestgovernance body
Number
Section: Corporate Governance
Gov-Selec
Nominatingand selectingthe highestgovernance body
Narrative
Gov-COI
Process for managingconflicts of interest
Narrative

Annex – EPRA Index Methodology

Methodological Notes Environment Performance Measures

Disclosure on Own Offices: Data on • LFL District Cooling Consumption: own offices has been included for energy Excludes one asset that underwent and water measures. Waste data is significant operational changes in 2024. recorded at a district level and includes offices.

Emissions Reporting

TECOM Group is aligning its emissions calculations with the GHG Protocol, applying an operational control boundary, where emissions from all assets under TECOM Group’s operational control are included.
Operational Control: The operational recorded at a district level and includes
control approach has been adopted. offices.
Under this approach, environmental impacts are reported for areas where TECOM Group has full authority to Electricity Consumption implement operational policies This • Total Electricity Consumption: Includes includes 100% of common areas and its solar energy and landlord-obtained utility own offices. consumption for 100% of common areas
• Landlord & Tenant Consumption: 100% and TECOM Group offices. It partially of common area consumption is reported. covers tenant consumption within Tenant consumption is reported only TECOM Group meters (27.9% of GLA). when it falls under the landlord’s meters. It encompasses all electricity procured EPRA’s boundary approach is applied, by TECOM Group, and excludes tenantcovering landlord-obtained utilities but obtained consumption (sub-metered or not tenant-obtained utilities due to data tenant-held meters).

Fuel Consumption

Total Fuel Consumption: Fuel is
```
    - **Scope 1** includes diesel consumed in common areas and refrigerants used in cooling systems. Emission factors for diesel are 2.67 kgCO₂/litre (Source: Department for Environment, Food and Rural Affairs, (DEFRA)). Emission factors for refrigerants are sourced from the IPCC Guidelines.

 - consumed in 2 forms – LPG and Diesel. All LPG consumption occurs in tenant areas, and all diesel consumption occurs in common areas.
```
- LFL Fuel Consumption: LFL LPG Department for Environment, Food and consumption excludes one asset that Rural Affairs, (DEFRA)). Emission factors began operations in 2024. LFL Diesel for refrigerants are sourced from the IPCC consumption is consistent for both 2023 Guidelines. and 2024. • Scope 2 includes electricity and district cooling consumed in common areas and
- Building Energy Intensity TECOM Group’s own offices. Emission Reported separately for electricity and district factors are: Electricity: 0.3979 kgCO₂/ cooling, as they constitute the majority of kWh (2023, Source: DEWA Sustainability energy use and cover different areas each. Report); 0.39204 kgCO₂/kWh (forecasted Normalisation has been applied to ensure for 2024). District Cooling: 0.3661 alignment between consumption and kgCO₂/RTH (2023) and 0.3607 kgCO₂/ respective covered areas. RTH (2024), calculated using electricity emission factors
Landlord & Tenant Consumption: 100% of common area consumption is reported. covers tenant consumption within consumption excludes one asset that Tenant consumption is reported only TECOM Group meters (27.9% of GLA). began operations in 2024. LFL Diesel when it falls under the landlord’s meters. It encompasses all electricity procured consumption is consistent for both 2023 EPRA’s boundary approach is applied, by TECOM Group, and excludes tenantand 2024. covering landlord-obtained utilities but obtained consumption (sub-metered or not tenant-obtained utilities due to data tenant-held meters). Building Energy Intensity access limitations. Tenant consumption • LFL Electricity Consumption: Calculated Reported separately for electricity and district is partially reported, limited to what using the same parameters as total cooling, as they constitute the majority of passes through the landlord’s meters. electricity consumption but excludes three energy use and cover different areas each. Reporting coverage for tenants follows assets: two due to significant operational Normalisation has been applied to ensure Gross Leasable Area (GLA), reflecting the changes in 2024 and one that became alignment between consumption and total space occupied by tenants under operational in 2024. respective covered areas. landlord-controlled utilities. • Electricity intensity covers 100% of
LFL Electricity Consumption: Calculated Reported separately for electricity and district using the same parameters as total cooling, as they constitute the majority of electricity consumption but excludes three energy use and cover different areas each. assets: two due to significant operational Normalisation has been applied to ensure changes in 2024 and one that became alignment between consumption and operational in 2024. respective covered areas.

common areas and 27.9% of GLA (tenant • Scope 3 includes water consumption areas). This encompasses all electricity and waste management (landfill and procured by TECOM Group. recycling). Emission factors are: • Buildings served by district cooling Water: 4.875 kgCO₂/m³ (2023 and 2024, account totally account for 32.4% of Source: DEWA Sustainability Report) GLA. 100% of common areas served by Waste to Landfill: 520.3 kgCO₂/m³ (2023 district cooling and 66% of GLA served and 2024, Source: DEFRA) by district cooling has been reported. Waste Recycled: 21.294 kgCO₂/m³ This encompasses all district cooling (2023 and 2024, Source: DEFRA) procured by TECOM Group.

Geography and Segmental Reporting: All assets are located in Dubai, UAE. Environmental data is reported at the portfolio level, aligning with the reporting framework’s approach to operational control boundaries. This ensures a comprehensive and standardized representation of environmental performance across all managed assets, supporting consistency and comparability in reporting.

District Cooling

Total District Cooling Consumption: Buildings served by district cooling account totally account for 32.4% of GLA. 66% of GLA served by district cooling has been reported. This encompasses all district cooling procured by TECOM Group, and excludes tenant-obtained consumption (tenant-held meters).

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Annex – EPRA Index Methodology continued

Water Consumption

Total Water Consumption: Reported for 100% of common areas and partially covers tenant consumption within landlord’s meters (27.9% of GLA). It excludes tenant obtained consumption

LEED Certifications

  - LEED certifications are applicable to the commercial portfolio only.

  - Certifications include one building certified by a customer and 42 buildings certified by TECOM Group.

(sub-metered or tenant-held meters).
LFL Water Consumption: Excludes four assets – three due to new operations and one that began operations in 2024.

Water Intensity

Water intensity has been calculated for the GLA of the entire portfolio. For the commercial portfolio, water is consumed in common areas that primarily serve office spaces. For the industrial portfolio, it includes residential spaces such as staff accommodation. Considering the nature of our portfolio, entire GLA has been used.

Social and Governance Measures

Scope: All reported social and governance measures apply to direct employees,. Health and safety measures, also include indirect employees. Asset level health and safety measures apply to all our properties.
Gender Pay Ratio: The gender pay ratio has been reported for female-to-male employees.
Turnover & Hiring Rate Calculation: The average turnover and hiring rate are calculated based on the number of employees at the beginning and end of the reporting year.

Waste Management

Waste by Disposal Route: TECOM Group manages waste for all tenants; therefore, waste data applies to all tenants.
LFL Waste by Disposal Route: Excludes two assets that began operations in 2024.

Dubai Internet City

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Ensuring alignment with
the company’s strategic
objectives while fostering
a culture of openness
and collaboration.
Chairman’s Letter 134
At a Glance 135
Our Governance Framework 136
Our Board of Directors 140
Board Committees 148
Our Executive Management 155
Internal Controls and Compliance 159
Engaging and Informing our Shareholders 162
Supporting our Society and Environment 163
2024 Events and Programmes 164
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CHAIRMAN’S LETTER

AT A GLANCE

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ESG

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TECOM Group is dedicated to upholding the highest standards of governance while fostering a culture of continuous improvement.

In 2024, the Board actively collaborated with management and stakeholders to align with TECOM Group’s strategic objectives, fostering a transparent and inclusive culture. This includes the implementation of a dedicated ESG governance structure, which addresses critical areas across the Group’s operations such as energy efficiency, community engagement, and ethical corporate conduct.

The Audit Committee enhanced its reporting with broader insights and disclosures on internal controls, accounting policies and reliability of management estimates – demonstrating our dedication to international best practices, transparency and accountability. More widely, the Audit Committee focused on embedding key programmes, including reviewing fraud risk assessments, Internal Controls over the Financial Reporting Framework (ICFR) and ICFR auditors’ opinion for 2024.

In February 2025, we are opening the nomination for Board membership and elections at the General Assembly on 10 March 2025. We are confident that our governance framework and practices will continue to support the Group’s strategic objectives, driving sustainable growth and value creation for all stakeholders for years to come.

On behalf of the Board, I sincerely thank our shareholders, employees, partners, and customers for their continued trust and support. Together, we will uphold TECOM Group’s achievements and role as a driver of Dubai’s economic growth and a standardbearer of corporate excellence.

Malek Al Malek

Chairman TECOM Group

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Board meetings
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Engagement with investors

Investor Engagements 100% 8 Board Meetings 7 100% Attendance Conferences and Roadshows Read more about Stakeholder Engagement on page 90 Committee meetings 5 100% Board tenure Audit Committee 100% Attendance 2.5 years as of 31 Dec 2024 5 100% Risk Committee 100% Attendance 5 93.75% Nomination and Remuneration Committee 93.75% Attendance

Board tenure

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Board Composition Board Diversity
2
(29%)
3
(43%)
4
(57%)
5
(71%)
Independent Non-Executive Female
Non-Independent Non-Executive Directors Male
Emiratisation
26%
24%
23%
33
(46%) 39
(54%)
’22 ’23 ’24
Male
Female
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OUR GOVERNANCE FRAMEWORK – CONTINUED

OUR GOVERNANCE FRAMEWORK

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TECOM Group PJSC (the TECOM Group’s “Company” or “TECOM Governance Framework Group”) is a company was designed to comply incorporated in Dubai with the applicable rules and listed on the Dubai and regulations and adopt Financial Market (“DFM”) international best practices. since 5 July 2022.

It aims to ensure the company’s strategic The Board has the ultimate responsibility guidance, the effective monitoring of to monitor the effectiveness of the management by the Board, and the Governance Framework and amend it as Board’s accountability to the Company and when necessary. and the shareholders. It demonstrates the four pillars outlined in the Governance Guide: Accountability, Responsibility, Fairness, and Transparency and Disclosure.

The Company complies with the applicable regulations and governance requirements, in particular, the Chairman of the Securities and Commodities Authority (“SCA”) and the Board of Directors’ Decision No. (3/R.M) of 2020 Concerning Approval of Joint Stock Companies Governance Guide, as amended in January 2024 (“Governance Guide”).

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Accountability

Responsibility

Fairness Transparency and Disclosure

The Board ensures The Board is responsible The Board ensures that the adequate, effective, for overseeing the rights of all shareholders The Board is responsible well-defined, and company’s management and stakeholders are for ensuring timely and well-integrated risk and monitoring its properly safeguarded adequate disclosure of management, internal performance. The Board and that there is an the Company’s activities, control, and compliance is required to act in the effective dialogue financial performance, frameworks. company’s best interests. between the Board and strategic and material the shareholders and events. Transparency boosts stakeholders. shareholders’ confidence in the Company’s decisionmaking and management.

The Company’s Board of Directors (“the Board”) is committed to adopting effective and robust corporate governance that promotes efficient and sound decisionmaking and accountable and transparent conduct to ensure the creation and safeguarding of long-term and sustainable shareholder value.

Governance Framework

Board Committees

Shareholders

Audit Committee

Risk Committee Nomination and Remuneration Committee

Integrity of financial statements • Efficiency of internal controls • Compliance framework • Assessment of external auditor • Governance Framework Compliance Internal Audit
Risk management strategy

Board

  - Remuneration and annual incentive plans

Effective risk management framework
Compliance framework • Business continuity and disaster incentive plans • Assessment of external auditor recovery plans • Succession planning
Strategic direction • Governance Framework • Sustainability framework and • Nomination of Directors
Long-term shareholder value awareness program • Human capital policies • Executive management performance
Dividend declaration and KPIs
Interests of all stakeholders Compliance Internal Audit Risk Management Delegation of Authority Executive Committees Management Committee Crisis Management Committee Integrity Committee
CEO • Oversight of strategy implementation • Oversight and directing the response/ • Oversight and management of • Financial performance recovery from crisis whistleblowing processes • Policy development and implementation • Crisis communication policy and plan • Oversight and management
Overall financial • Investment and transactions of investigations performance • Sustainability and culture
Overall strategy implementation Insider and Disclosure Committee Balanced Scorecard Review ESG Committee
Operational decisions • Managing share dealing and Committee • Oversight of ESG framework and
Communication with the insiders list • Balance Scorecard Framework initiatives implementation Board and investors • Regulatory disclosures • Management and monitoring of • Integrating ESG into core strategy and • Trading reports corporate KPIs to meet corporate operational practice objectives • Alignment with global sustainability standards.

Strategic direction Long-term shareholder value Dividend declaration Interests of all stakeholders Delegation of Authority

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KEY GOVERNANCE FRAMEWORK POLICIES

SKILLS MATRIX

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In line with our commitment to developing and implementing robust corporate governance that safeguards the business and supports strategic progress, TECOM Group has updated the key policies that form an integral part of its governance framework to ensure full compliance with the revised Governance Guide. All the policies are reviewed on a regular basis.

Committee meeting at the beginning of each meeting. The conflicted Directors refrain from taking part in the discussions and decision-making on the related business matter.

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The Directors complete quarterly declarations of conflict of interest. The declarations include detailed profiles outlining their external directorships in private and listed entities, senior executive roles they hold, shareholdings, and other interests that could raise concerns about conflict of interest.

geographic footprint. The Board, having considered the proposals from the NRC for the payment of Directors’ fees, would submit the annual Directors’ remuneration for each preceding financial year to the shareholders at the General Assembly for consideration and approval.

Director Remuneration

TECOM Group’s Board of Directors and the Nomination and Remuneration Committee (NRC) are committed to ensuring that the level and composition of remuneration to the Board Members are sufficient and justifiable to attract and maintain talented individuals able to fulfil the duties and responsibilities of a Board Director.

The Company Secretary maintains the Board’s conflict of interest register, while the Compliance Officer maintains the employees’ conflict of interest register. Both registers document all declared conflicts and the measures taken to manage, mitigate, segregate, or eliminate the actual or potential conflict.

to ensure that the Director can dedicate sufficient time and effort to his/her duties and that there are no conflicts between their role and other commitments.

Further details on Directors’ Remuneration Policy can be found on the Company’s website.

The Policy ensures that the composition Conflict of interest of the Board reflects the scale and type Nomination and election TECOM Group’s Board ensures that the of the Company’s operations. The Board of Board Members Company implements the necessary possesses collectively a suitable mix of TECOM Group’s Board of Directors is governance mechanisms and systems to expertise, proficiency, experience, diversity dedicated to maintaining a qualified and identify and manage conflicts of interest and and independence to effectively oversee the competent Board to set the strategic mitigate potential risks. The Directors are Company’s activities. The representation of direction of the Company and ensure committed to refrain from actions that may women on TECOM Group’s Board shall not lead to a conflict of interest. The Directors proactive oversight and management of the be less than 20%. interests of all its stakeholders. The Director disclose any actual or potential conflict Nomination and Election Policy defines of interest in writing to the Board and the the process to address the nomination and Company Secretary: election requirements whilst ensuring the • The Directors disclose conflict of Board’s diversity. During the appointment interest in the business of a Board or process, careful consideration is given

The shareholders approved the Director Remuneration Policy on 14 March 2023. It outlines the method and types of remuneration for its Directors, as well as their roles, contributions, and participation in the Board and Board Committees.

The Directors’ remuneration is linked to the Company’s performance in the medium and long term. In preparation for the annual review, the NRC considers data from comparable companies or other relevant sectors, bearing in mind the size of the Company’s business, its complexity and its

The Board is committed to good governance practices. It recognises the importance of ensuring that it has the right composition and skills necessary to make decisions regarding its business model, strategy, and risk profile.

The Skills Matrix outlines the relevant skills and attributes required to ensure a diverse range of views and perspectives for the effective governance, oversight and strategic leadership of TECOM Group.

Additional skills and attributes may be added depending on the skill or specific area of expertise the Board may seek in the future.

The Board uses the Skills Matrix guideline for:

Appointments and succession planning: The skills will be considered when re-electing or appointing new Board Members.
Directors’ development programs: The identified skills will be used to establish development programs for directors for each financial year.
Regulatory requirements: Regular review of Board composition and skills matrix is key to meeting legal and regulatory requirements, including diversity and inclusion.
Governance: Conducting the review improves board dynamics and board effectiveness and contributes positively to board evaluations.

The Board Skills Matrix consists of four categories segregated under two types of skills: (i) core skills and (ii) specific skills.

Specific skills

Core skills

Applicability: Applicability: All directors are expected to possess the full set No one director is expected to have every skill of personal attributes and behavioural qualities referenced, rather, these skills would be held required to operate as an effective director. collectively by the Board as a whole.

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Behavioural
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Industry Knowledge
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Communications and leadership skills. • Experience and knowledge of the • Ability to interact with fellow Board Members, industry in which the Company operates Stakeholders and management. i.e. real estate, leasing, construction and
• Ability to have robust discussions and ask development. tough questions. Skills
Matrix
Governance Technical
Understand role of the Board Member, • Technical, professional or specialist knowledge director responsibilities and duties. to assist the Board in its decision making.
Being able to identify and manage conflicts.
Being able to identify and manage conflicts. • Includes skills or knowledge in human • Understand laws and regulations. capital, audit, finance, risk management, law, marketing, cybersecurity and ESG.

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Driving our Vision for Tomorrow

Key to Committee Memberships

Member of the AC Audit Committee Member of the RC Risk Committee

Member of the Nomination NRC and Remuneration Committee

Chair of the Audit Committee

Chair of the Risk Committee

Chair of the Nomination and Remuneration Committee

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Malek Al Malek

Chairman

Non-Executive

Experience and qualifications Malek Al Malek served as Group CEO of TECOM Group (2018-2020) and CEO of TECOM Business Parks (2013-2017). Since joining in 2002, he has played an integral and strategic role in TECOM Group’s growth story, evolving the Group’s status as a key enabler of Dubai’s Knowledge Economy. He has consolidated TECOM Group’s position by launching innovative solutions that contributed to attracting major international and regional companies while creating an enabling environment for start-ups – many of which acquired unicorn status.

Malek holds a Bachelor’s degree in Business Management from the Higher Colleges of Technology in UAE.

Other membership or joint-stock company positions

Chairman of Emirates Integrated Telecommunications Company PJSC (EITC) (Du)

Other key regulatory, government or commercial positions

Group CEO of DHAM L.L.C.
Director General of Dubai Development Authority (DDA)
Chairman of Dubai Institute of Design and Innovation and Centre of Excellence for Applied Research and Training

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Ahmed Alqassim

Vice Chairman Independent Non-Executive

AC RC

Experience and qualifications

Ahmed Alqassim is a seasoned banking and management professional with more than 18 years of experience in commercial and investment banking. He is responsible for corporate and institutional coverage at Emirates NBD, a leading banking Group in the MENAT (Middle East, North Africa and Turkey) region.

He previously served as CEO of Dubai Group and held senior roles at General Electric and Mubadala – GE Capital. He also served as a Board Member of the Bank of Muscat, EFG-Hermes, Shuaa Capital, and Sun Hung Kai Properties.

Ahmed holds a Bachelor’s degree in Engineering Management from the Higher Colleges of Technology in the UAE and an MBA from the University of Victoria in Canada.

Other key regulatory, government or

commercial positions

Group Head of Wholesale Banking at Emirates NBD Bank PJSC
Board Member of Emirates Post Group and Union Coop

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Aref Ahli

Independent Non-Executive

Experience and qualifications

Aref Ahli currently serves as the Executive Director of the Budget and Planning Division in the Department of Finance of the Government of Dubai, a position he has held since 2011. He held various positions at Dubai Municipality from 1989 to 2010. He served as a financial expert in the courts of the UAE from 1994 to 1996 and as a manager in the audit office from 1993 to 2001. He is an active member of the Association of UAE Accountants and Auditors and a member of the International Arab Society of Certified Accountants. He is a certified lecturer and Knowledge Ambassador at the Mohammed bin Rashid School of Government. Aref is a member of various judicial committees and the Government Financial Policy Coordination Council at the UAE level.

Aref holds a Bachelor’s degree in Accounting from UAE University and is a certified auditor by the Audit Department of the Ministry of Economy.

Other key regulatory, government or commercial positions

Executive Director of Budget and Planning Division, Department of Finance of the Government of Dubai
Board Member of Higher Colleges of Technology, Higher Committee for Future Technology & Digital Economy (Dubai) and Emirates Foundation
Council Member of Dubai Freezone Council, Dubai Media Council and the Dubai Urban Planning 2040 Executive Council/Supreme Committee

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Aysha Miran

Independent Non-Executive

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NRC
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Experience and qualifications

Aysha Miran has over 20 years of experience within the public sector, with a specific focus on setting the strategic agenda for the Executive Council and its Strategic Affairs Council and assisting in decision-making. She has expertise within the realm of strategy management, as well as knowledge within a multitude of disciplines, including strategic planning, performance management, policy-making and governance within the public sector. She started her career with The Executive Office, a private office of HH Sheikh Mohammed Bin Rashid Al Maktoum, in 2002. She previously held the position of Assistant Secretary General of Strategy Management and Governance Sector at the Executive Council Government of Dubai. She was the Deputy Chairperson of the Mohammed Bin Rashid School of Government and a Board Member of the Knowledge Fund Establishment.

Aysha holds a Master’s in International Business Law from Paris II and an EMBA from the American University of Sharjah. She also has an Executive Diploma in Public Administration from the National University of Singapore and is certified in Balance Scorecard Practice.

Other key regulatory, government or commercial positions

Director General, Knowledge and Human Development Authority (KHDA)
Board Member of the Digital School, UAE University and the National University of Dubai

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Fatima Hussain

Non-Executive

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NRC
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Experience and qualifications Fatima Hussain has worked with several reputed private and semi-government organisations across various strategic HR disciplines that include performance management, total rewards, talent acquisition and development, Emiratisation and talent redeployment. She has partnered with senior leadership and C-Level executives to lead various critical projects related to quality management and business process improvement in order to realise organisational effectiveness and achieve set business objectives. Fatima is a Senior Assessor Member with the Department of Economic Development in Dubai for Human Development Awards.

She was the Chairperson of Takaful Emarat Insurance PSC, a Board Member, and the Chairperson of the Nomination and Remuneration Committees of Memaar Building Systems and Aramex PJSC.

Fatima holds a Master’s degree in Business Administration from the University of Dubai and completed an executive leadership programme from Wharton Business School (United States).

Other key regulatory, government or commercial positions

Chief People Officer of Dubai Holding LLC
Board Member and Member of the Nomination and Remuneration Committee of Ell Capital PSC
Member of the Central Grievance Committee

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Amit Kaushal

Non-Executive

AC RC

Experience and qualifications Under Amit’s leadership, Dubai Holding has achieved sustainable economic growth and unparalleled results, further cementing its position as one of the UAE’s largest and most diverse investment conglomerates.

Amit has vast experience in financial services, having spent more than a decade in the earlier years of his career with leading investment banks in London and Dubai, where he worked for Goldman Sachs, UBS and Deutsche Bank across transaction advisory, structuring and capital markets disciplines.

Amit holds a Master of Philosophy degree in Finance from the University of Cambridge and a BSc (First Class Hons.) in Mathematics, Operational Research, Statistics and Economics from the University of Warwick.

Other membership or joint-stock

company positions

Board Member of Emirates Central Cooling Systems Corporation PJSC

Other key regulatory, government or commercial positions

Group Chief Executive Officer of Dubai Holding LLC
Advisory Board Member of Warwick Business School
Chairperson of the Executive Committee and Member of the Investment Committee of Shamal Holding LLC

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Omar Karim

Non-Executive

NRC

Experience and qualifications

Omar Karim oversees the investment strategy of a US$35 billion multinational portfolio of strategic and financial investments across real estate, hospitality, leisure and entertainment, telecommunications and media, travel and tourism, consumer retail and sustainable and renewable energy.

Before joining Dubai Holding, Omar served as an investment banker at UBS Investment Bank (NYSE: UBS).

Omar started his career at KPMG in Australia in their corporate finance practice.

Omar holds a Bachelor’s degree in Accounting and Finance from Monash University in Australia.

Other membership or joint-stock company positions

• Board Member of Emaar Properties PJSC Other key regulatory, government or commercial positions

Chief Investment Officer of Dubai Holding LLC
Chairman of Merex Investment Group LLC
Board Member of Azadea Holding Company DIFC Ltd
Board Member of Shamal Venture Cruise Terminal LLC, Certares Holdings (Blockable) LLC and Aurora Holding Company Limited
Member of Visa CEMEA Merchant Advisory Council

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Role of the Board

Role of the Board goals. The Board has the final authority to The Board is the decision-making authority decide on all matters except those reserved for all matters of significance to the for shareholders’ approval at the general Company, including strategic, financial, or assembly meeting. The Board Charter reputational consequences or implications. provides the key functions of the Board and the guiding principles for its composition, The Board provides strategic leadership responsibilities and accountabilities. and is responsible for leading the Company towards the attainment of its vision and

Key areas of responsibility

Adopting the strategic approaches and main objectives of the Company and supervising implementation thereof.
Setting clear and precise standards and procedures for the nomination, remuneration and development of directors.
Taking the necessary procedures to ensure an efficient internal auditing function.
Setting a clear delegation policy.
Setting a code of conduct.
Setting transparency and disclosure policies, including inside information and share dealing code.
Ensuring the establishment of a compliance function, adopting policies and procedures to ensure compliance with applicable laws, regulations and the requirements of the supervisory authorities.
Adopt criteria for granting incentives, bonuses, and privileges to Directors and senior executive management in a manner that serves the Company’s interests and realises its objectives.
Setting risk management strategy and determining the risk appetite.
Setting a clear policy for distribution of the Company’s profits.
Specifying the optimal capital structure, strategies, and financial objectives and approving annual budgets.
Ensuring the protection of shareholders’ interests and Company assets.
Setting performance objectives and monitoring implementation and the overall performance of the Company.
Setting policies on sustainability, gender diversity and human resources.

The Board held eight (8) meetings in the period ending 31 December 2024.

Date of Board Meeting	Number of Attendees in Person	Number of Attendees by Proxy	Names of Absent Members
30 January 2024	6	1*	–
20 February 2024 02 May 2024	6 7	1** –	– –
15 May 2024	7	–	–
1 August 2024	6	1***	–
26 September 2024 31 October 2024	7 7	– –	– –
12 December 2024	7	–	–

Aysha Miran to Malek Al Malek
** Amit Kaushal to Omar Karim
*** Fatma Hussain to Omar Karim

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Key activities during 2024

Considered and approved major acquisitions by its subsidiaries for a total value of AED1.5 billion.
Approved 2024 quarterly financial statements and 2023 full-year financial statements.
Considered and approved major developments for a total value of AED 1.2 billion.
Considered and approved payment of interim cash dividend of AED 400 million for the first sixmonth period ending 30 June 2024.
Revised and approved the Company’s

risk appetite and risk tolerance framework.

Reviewed and approved the 2023 performance incentive plan.
Completed the 2024 Board and Board Committees annual evaluation.
Approved Board evaluation report and 2024 action plan.

The Board did not issue any decisions by passing during the financial year 2024.

Considered and approved the 20252029 strategy and business plan,
2025 budget and corporate balanced scorecard.

Board remuneration

The Board Members are entitled to a ‘sitting fee’ for attending the Board Committees’ meetings. The proposed sitting fees are outlined in the table below and will be presented to the shareholders for approval at the Annual General Assembly.

The Board remuneration proposal for 2024, AED 5,990,000 plus VAT (including sitting fees), will be presented to the shareholders for approval at the Annual General Assembly on 10 March 2025.

The Board Members did not and will not receive any additional allowances, salaries or fees other than the allowances for attending the Committees’ meetings.

The remuneration paid to the Board Members for 2023 was AED5,990,000 (as approved by the shareholders at the General Assembly held on 04 March 2024).

Assembly held on 04 March 2024).	attending the Committees’ meetings.
Name Sitting fee (AED)	Number of meetings attended
	AC RC NRC Total (AED)
Aref Ahli 10,000	5 5 100,000
Ahmed Alqassim 10,000	5 5 5 150,000
Amit Kaushal 10,000	5 5 100,000
Fatima Hussain 10,000	5 50,000
Omar Karim 10,000	4 40,000
Aysha Miran 10,000	5 50,000
Total	490,000

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Board evaluation

Effective Board evaluation creating value for TECOM Group At TECOM Group, board evaluation is more than a procedural task; it is a cornerstone of our Corporate Governance Framework. Recognising its significance, our Board considers this evaluation an integral component for enhancing governance, fostering accountability, promoting transparency, and reinforcing strategic thinking.

Board evaluation at TECOM Group serves multiple purposes, including:

strengthening governance practices;
fostering a culture of accountability and transparency;
encouraging strategic thinking, leadership, and collaboration;
sending a positive signal to investors and stakeholders about our commitment to good governance;
aiding efficient decision-making; and
demonstrating our commitment to continually developing the Board’s capabilities.

The evaluation follows

a seven-step process:

Define Objectives

Setting clear goals for what the evaluation aims to achieve.

Determine Evaluation Scope 2 Identifying who will be evaluated, including the Board, its Committees, and individual Directors.

Establish Methodology

Selecting appropriate evaluation methods, be it questionnaires, surveys, or one-on-one interviews.

Conduct Evaluation

Using an electronic platform for efficient and effective data gathering.

Analyse Results

Evaluating both qualitative and quantitative data to gain comprehensive insights.

Finalise and Submit Report
6 Compiling findings into a report

for Board review.

Develop and Implement Action Plan
7
Based on the evaluation results, create an action plan, set a timeline for each action, and regularly monitor progress.

Board training and development

Annual evaluation process

The evaluation of the Board and its Committees is an annual exercise. The process follows a three-year cycle, with evaluations being internally facilitated for two years and externally facilitated every third year, in line with the Securities and Commodities Authority’s (SCA) Governance Guide. The Chairman of the Board, aided by the Company Secretary, leads this process. To ensure candour and honesty in feedback, the responses are collected anonymously.

At TECOM Group, we recognise that the continuous training and development of our Board of Directors is not just an option but a necessity for fostering strong corporate governance and ensuring informed decisionmaking at the highest level.

This year, we placed a high emphasis on enhancing the knowledge and skills of our Board Members, reflecting our belief that an informed Board is integral to the success and integrity of our company.

Impact and outcome

This structured evaluation process plays In line with this commitment, our Board a pivotal role in ensuring that TECOM Members received updates and briefings on Group’s Board remains dynamic, effective, critical topics, including: and aligned with the evolving needs of • legal briefing regarding the amendments the business and its stakeholders. It is a to the Governance Guide, how they testament to our dedication to excellence in impact the Company and action plan to corporate governance and our unwavering mitigate and integrate the changes; and commitment to continuously improving our • individual workshops covering key topics leadership and governance practices. identified by the Board during the 2023 performance evaluation:

In line with this commitment, our Board Members received updates and briefings on critical topics, including:

The Board completed two performance – strategic risk management highlighting evaluations for 2023 and 2024, facilitated emerging industry risks and their internally by the Company Secretary under impact on the company’s strategy. the leadership of the Chairman. In line – cybersecurity and AI risks, highlighting with the Governance Guide requirements, the impact on the Company and the board evaluation for 2025 shall be directors’ duties/liabilities in case facilitated externally by engaging a corporate of breaches. governance and board performance review expert.

Board share dealings

The Share Dealing Policy provides the framework for Board Members and employees while dealing with the Company’s securities. It ensures appropriate controls are embedded and relevant notifications and clearances are obtained, as necessary. The Board is committed to complying with the Policy and the disclosure requirements.

Based on the disclosures made by the Board Members, the table beside shows the Board and their first-degree relatives’ dealings in TECOM Group securities during 2024.

Board delegation

The Board delegated the day-to-day management of the Company to the Chief Executive Officer, in line with the approved delegation of authority.

The Board defines and approves the Company’s delegation of authority, which determines the types and maximum number of obligations that the Chief Executive Officer may approve, matters reserved for General Assembly, Board or Board Committee approval. The delegation of authority facilitates the effective decisionmaking process and the ability to be resilient in response to market demands.

The key responsibilities delegated include:

implementing the Company’s strategy as determined by the Board;
develop and implement the risk management framework, as determined by the Board and subject to the oversight of the Risk Committee;
developing and implementing the internal control and compliance frameworks, subject to the oversight of the Audit Committee; and
developing and implementing the
TECOM Group Remuneration Policy, as determined by the Board and subject to the oversight of the Nomination and Remuneration Committee.
Authorised person Chief Executive Officer

Power of authorisation

To undertake the day-to-day management of the Company, subject to the limits set by the Board.

Duration of authorisation Valid until revoked by the Board.

	Name	Position Owned Shares as of 31/12/2024 Total Sale Total Purchase
	Malek Al Malek	Chairman 0 0 0
	Ahmed Alqassim	Vice Chairman 0 0 0
	Aref Ahli	Board Member 0 0 0
	Aysha Miran Fatima Hussain	Board Member 0 0 0 Board Member 0 0 0
	Amit Kaushal Omar Karim	Board Member 0 0 0 Board Member 0 0 0

Company Secretary

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The Board appointed Mrs. Ritva KassisNicholas as Company Secretary effective 19 September 2022.

Mrs. Nicholas is a Chartered Governance Professional and Chartered Company Secretary. She is an ethics and compliance specialist with over 15 years of experience in listed companies across various industries. She is a Fellow of the Chartered Governance Institute (UK) and holds an MSc in Corporate Governance from London South Bank University.

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Audit Committee

The Board established three Board Committees: the Audit Committee (“AC”), the Risk Committee (“RC”), and the Nomination and Remuneration Committee (“NRC”) (collectively, “the Committees”).

The Committees support the Board in discharging its duties. Each Committee focuses on a specific area of expertise, makes informed decisions within its delegated authority by the Board, and reports regularly to the Board.

The Board delegated some of its authority to the Committees, with each Committee governed by its charter. The table below shows the membership of each Committee.

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|||||
|---|---|---|---|
|Name|AC|RC|NRC|
|Ahmed Alqassim|Member|Member|Chair|
|Amit Kaushal|Member|Member|
|Omar Karim|Member|
|Fatima Hussain|Member|
|Aysha Miran|Member|
|Aref Ahli|Chair|Chair|

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Mr. Aref Ahli

Chairperson

As Chairperson of the AC, I am committed to ensuring the integrity and transparency of our financial reporting. With enhanced reporting introduced this year, I look forward to addressing shareholders’ queries at the General Assembly, reinforcing our dedication to robust governance and stakeholder confidence.”

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||||
|---|---|---|
|The AC held five (5) meetings during the financial year|
|ending 31 December 2024.|
|Date of Nomination and|Number of Attendees|Names of Absent|
|Renumeration Committee meeting|in Person|Members|
|–|
|29 January 2024|
|–|
|1 May 2024|
|–|
|31 July 2024|
|30 October 2024|–|
|11 December 2024|–|

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||||
|---|---|---|
|Membership|The AC considers the applicable laws|
|The Governance Guide requires that the|and regulations of the UAE, the SCA, and|
|AC must comprise at least three Members|the DFM, including the provisions of the|
|who are Non-Executive Directors and|Governance Rules.|
|have knowledge and expertise in financial|
|and accounting matters, and at least two|Key responsibilities|
|Members must be Independent. One of the|The AC assists the Board in discharging|
|Independent Members must be appointed|its responsibilities concerning financial|
|as the Chairperson of the AC. The Company|reporting, external and internal audits|
|complies with these provisions, and details of|and controls, including:|
|membership are defined hereafter.|• reviewing and monitoring the integrity|
|of the Company’s annual and interim|
|Name|Position|financial statements;|
|Aref Ahli|Chairperson|• reviewing and monitoring the extent|
|of the non-audit work undertaken|
|Ahmed Alqassim|Member|
|by external auditors;|
|Amit Kaushal|Member|• advising on the appointment of|
|external auditors;|
|Mr. Aref Ahli, Chairperson of the AC,|• overseeing the relationship with|
|acknowledges his responsibility for the|the external auditors;|
|company’s committee system, including|• reviewing the effectiveness of the|
|reviewing its work mechanism and|external audit process; and|
|ensuring its effectiveness.|• reviewing the effectiveness of the|
|Company’s Internal Audit function.|
|As Chairperson of the AC, he ensures the|
|The AC takes appropriate steps to ensure|
|effectiveness and integrity of the financial|
|that the Company’s external auditors|
|reporting and audit processes. Our|
|are independent of the Company and|
|commitment to rigorous compliance with|
|intends to obtain written confirmation|
|UAE regulations, the SCA, and the DFM|
|from the Company’s auditors that they will|
|underscores our dedication to governance|
|comply with guidelines on independence|
|and financial transparency.|
|issued by the relevant accountancy and|
|auditing bodies.|

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BOARD COMMITTEES – CONTINUED

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Corporate Governance

Strategic Report

ESG

Audit Committee continued

Reporting and disclosure

In 2024, TECOM Group followed a stringent procurement process to appoint an external auditor. A shortlist was presented to the AC. The AC endorsed one firm for Board approval. The Board will review the proposal and recommend the appointment of the preferred firm for approval by the shareholders at the upcoming General Assembly.

The AC prepared its first annual report as mandated by the Governance Guide, approved and signed by the Chairperson.

Significant matters relating to the financial statements

No significant matters other than those already disclosed are considered by AC for the approval of the financial statements.

Risk management and

internal control

The AC is responsible for overseeing the TECOM Group’s internal control system, including risk management and compliance frameworks and the internal audit function. During quarterly meetings, the committee reviews reports submitted by Internal Audit, Risk Management, and Compliance and provides direction to management, where necessary, to resolve identified deficiencies or implement mitigation actions.

Appointment of external auditors

TECOM Group carefully selects and appoints an external auditor based on their qualifications, experience, and reputation after following a very robust procurement/ sourcing process. The current auditors will have completed six years upon completing their audit for the year ending 31 December 2024.

Key activities during 2024

Examined and endorsed Internal Audit external quality assessment.
Reviewed and endorsed the 2024 quarterly financial statements and 2023 full-year financial statements.
Re-affirmed the independence of the internal audit function and external auditors.
Considered and approved Group Tax Policy.
Completed the external auditor’s assessment.
Considered and approved the internal audit annual budget and plan for 2025.
Reviewed the quarterly internal audit reports.
Considered and reviewed fraud risk assessments.
Considered and approved compliance annual budget and plan for 2025.

Independence and effectiveness of external audit process

TECOM Group follows the below approach:

Clear communication We maintain clear and open communication between the AC, management, and the external auditors. This helps in addressing any issues promptly and ensures that the audit process is transparent.

AC oversight

TECOM Group has established a robust AC to oversee the external audit process. This committee is comprised of independent and non-executive directors who can provide unbiased oversight.

Independence

TECOM Group has implemented strict Selection and appointment policies to safeguard the auditor’s We carefully select and appoint independence. These include rotating an external auditor based on their audit partners and restricting non-audit qualifications, experience, and reputation. services provided by the audit firm, which The AC participates in this process to can impair the independence of existing ensure independence. external auditors. TECOM Group did not obtain any services other than auditing Regular assessments the company and its subsidiary’s account We conduct regular assessments of the for the year ended 31 December 2024.

We conduct regular assessments of the external auditor’s performance. This

includes evaluating their independence, objectivity, and the quality of their work.

Confirmation from external auditors

At each reporting period, the external auditors confirm their independence as part of the quarterly reporting and their mandatory communication with TECOM Group.

Audit Committee continued

Each quarter, Internal Audit (IA) presents its executive report to the AC, which includes the results and major findings from all audit Comprehensive corrective treatment plan reports issued during that quarter. The executive report also covers the root causes of identified Identification and • Upon identifying a fundamental findings, the audit log status, and updates on 1 assessment of deficiency, the Risk Management the rectification of observations from past audit deficiency reports. In addition to the executive report, IA determine the scope and impact submits detailed audit reports that include both of the issue. high- and medium-risk observations.

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||||||
|---|---|---|---|---|
|Identification and|• Upon identifying a fundamental|• The deficiency is documented in detail,|
|findings, the audit log status, and updates on|1|assessment of|deficiency, the Risk Management|including affected areas, potential|
|the rectification of observations from past audit|deficiency|team conducts a root cause analysis to|consequences, and associated risks.|
|reports. In addition to the executive report, IA|
|determine the scope and impact|
|submits detailed audit reports that include both|of the issue.|
|high- and medium-risk observations.|
|The AC reviews the action plans and targets|2|Immediate|• Temporary measures are implemented|• Relevant stakeholders, including senior|
|implementation dates provided by management|corrective actions|to mitigate immediate risks and prevent|management and the Risk Committee,|
|for the findings and deficiencies identified by IA.|further escalation.|are notified to ensure prompt attention.|
|These findings are reported to the committee as|
|part of IA’s quarterly reporting. The committee|
|also provides direction as needed on the|
|deficiencies and related mitigation action plans.|3|Development of|• A formal corrective treatment plan is|• External consultants or auditors may be|
|a comprehensive|developed, outlining specific actions to|engaged to validate the approach and|
|The AC, in collaboration with the Risk Committee,|treatment plan|address the deficiency.|provide expert recommendations.|
|ensures the formulation and implementation of|• The plan includes clear timelines,|
|a comprehensive corrective treatment plan for|responsible parties, and required|
|fundamental deficiencies in risk management.|resources for implementation.|
|Related party transactions|
|Implementation|• The treatment plan is executed|• Key performance indicators (KPIs)|
|There is a defined policy and process for|4|
|and monitoring|under the supervision of the Risk|and control measures are introduced|
|reviewing and approving related party|
|Management and Internal Audit teams.|to track the effectiveness of corrective|
|transactions. Additionally, IA conducts an annual|
|actions (if needed)|
|review of all related party transactions and|
|ensures the AC is compliant with applicable|
|regulations.|
|5|Reporting and|• Regular updates on the treatment plan|• A comprehensive report is included in|
|communication|are shared with the TECOM Group Risk|the governance report, detailing the|
|According to the definition in the SCA|
|Committee.|deficiency, corrective measures, and|
|Governance Guide, there were no related party|
|transactions during the year.|outcomes.|

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BOARD COMMITTEES – CONTINUED

Financial Statements

Corporate Governance

Strategic Report ESG Corporate Governance

Strategic Report

ESG

Risk Committee

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Aref Ahli
Chairperson
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I am dedicated to fortifying TECOM Group’s risk management framework and sustainability strategies. By aligning with top governance standards, we ensure robust internal controls and proactive responses to emerging risks, safeguarding long-term value creation.”

The RC held five (5) meetings during the financial year ending 31 December 2024.

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||||
|---|---|---|
|Date of Risk Committee|Number of Attendees|Names of Absent|
|meeting|in Person|Members|
|–|
|29 January 2024|
|–|
|1 May 2024|
|–|
|31 July 2024|
|30 October 2024|–|
|11 December 2024|–|

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The Governance Guide requires that the Risk Committee (RC) be comprised of at least three (3) non-executive Directors, two (2) of whom must be Independent Directors. The Chairperson must be an Independent Director elected by the Committee.

The Company complies with these provisions, and details of membership are defined hereafter.

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|||
|---|---|
|Name|Position|
|Aref Ahli|Chairperson|
|Ahmed Alqassim|Member|
|Amit Kaushal|Member|

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Mr. Aref Ahli, Chairperson of the RC, acknowledges his responsibility for the company’s committee system, his review of its work mechanism, and his efforts to ensure its effectiveness.

Key activities during 2024

Reviewed and considered the quarterly risk reports.
Approved the ESG Policy and ESG governance framework.
Approved Risk Management plan and budget for 2025.

The RC assists the Board in discharging its duties concerning risk management and sustainability, including:

ensuring that appropriate systems and procedures are in place for effective risk management within the Company;
analysing, evaluating and approving the effectiveness of internal risk management procedures and internal controls regularly;
reviewing and recommending the risk management target operating model, framework, policies, risk appetite and tolerance to the Board;
assessing whether the Company has appropriate up-to-date contingency, business continuity and disaster recovery plans; and
ensure that an effective sustainability strategy is in place and oversee its implementation.
Considered and debated the corporate risks and key risk indicators.
Approved revised business continuity policy, manual and plans
Approved the crisis management plan and crisis communication plan.
Considered and approved 2025 ESG strategic initiatives.

Nomination and Remuneration Committee

Ahmed Alqassim

Chairperson

Our focus in 2024 has been on fostering a balanced and diverse Board composition while aligning remuneration policies with TECOM Group’s strategic goals. This ensures we attract and retain top talent to drive sustainable growth and shareholder value.”

The NRC held five (5) meetings during the financial year ending 31 December 2024.

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||||
|---|---|---|
|Date of Nomination and|Number of Attendees|Names of Absent|
|Renumeration Committee meeting|in Person|Members|
|29 January 2024|Omar Karim|
|–|
|31 July 2024|
|30 October 2024|–|
|11 December 2024|–|
|27 December 2024|–|

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The Governance Rules require that the Committees of the Board. It is responsible for: Nomination and Remuneration Committee (NRC) • evaluating the balance of skills, knowledge comprise at least three Non-Executive Directors, and experience and the size, structure and of whom at least two must be Independent. composition of the Board and its Committees; One of the Independent Members must be • monitoring the independent status of the appointed as the Chairperson of the NRC. The Independent Non-Executive Directors; and Company complies with these provisions, and • periodically reviewing the Board’s structure details of membership are defined hereafter. and identifying potential candidates to be appointed as Directors or Committee Name Position Members as the need arises.

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||||
|---|---|---|
|Name|Position|
|Members as the need arises.|
|Ahmed Alqassim|Chairperson|
|Aysha Miran|Member|In addition, the NRC assists the Board in|
|determining its responsibilities concerning|
|Fatima Hussain|Member|
|remuneration, including:|
|Omar Karim|Member|• making recommendations to the Board on the|
|Company’s policy on executive remuneration;|
|Mr. Ahmed Alqassim, Chairperson of the|• setting the over-arching principles, parameters|
|NRC, acknowledges his responsibility for the|and Governance Framework of the|
|company’s committee system, his review of|Remuneration Policy; and|
|its work mechanism, and his efforts to ensure|• determining the individual remuneration and|
|its effectiveness. The NRC assists the Board in|benefits package of each of the Company’s|
|discharging its responsibilities relating to the|Directors and senior management.|
|composition and make-up of the Board and any|

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Key activities during 2024

Evaluated the Board composition and skills matrix and reported to the board that it remains appropriate.
Reviewed and endorsed the succession plan and leadership competency framework.
Assessed the non-executive directors’ independence and was satisfied that three of the seven directors remain independent.
Reviewed and endorsed the annual incentive plan.
Approved the updated HC Policy
• Considered and approved the updated and manual.
organisational structure.
Mandated and considered remuneration benchmarking exercise.

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BOARD COMMITTEES – CONTINUED

OUR EXECUTIVE MANAGEMENT

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Corporate Governance

Strategic Report

ESG

Insider and Disclosure Committee

Haissam Baydoun Chairperson

In 2024, the Insider and Disclosure Committee strengthened governance by enhancing regulatory adherence and market transparency. By streamlining insider information processes, we reinforced transaction integrity while adapting to dynamic regulations to protect shareholder value.”

The RC held five (5) meetings during the financial year ending 31 December 2024.

	Date of Insider and	Number of Attendees Names of Absent
	Disclosure Committee meeting	in Person Members
	11 April 2024	–
	24 June 2024	–
	22 August 2024	–
	29 October 2024	–
	20 December 2024	–

identifying and establishing what constitutes material non-public information;

The Insider and Disclosure Committee (“IDC”) consists of:

determining the disclosure treatment of material and potential inside information and, where appropriate, ensuring its timely and accurate communication with the relevant authorities;

Name Position

consists of: Name	Position
Haissam Baydoun	Chairperson
Matthew Madanat	Member
Elizabeth Board	Member

educating employees and reinforcing their responsibility with the treatment of such information;

Haissam Baydoun, Chairperson of the IDC, acknowledges his responsibility for the company’s committee system, which supports the Board in overseeing the Company’s obligations arising out of applicable laws and regulations regarding insider trading, disclosure, and transparency.

identifying employees and external consultants who have regular access to material non-public information and creating an insider list which is regularly updated;
notifying SCA and DFM annually about the insider list and submitting a copy of the list to the authorities at any given time upon request; and

The IDC responsibilities include:

developing and implementing procedures to regularly review and update the corporate disclosure policy and share dealing policy while also monitoring the compliance for the same;
preparing quarterly trading reports, including concerns over any of the trades, and submitting them to the AC.

Policy to reflect best practices and regulatory changes.

Key activities during 2024

Regularly maintained and updated the Insider List to ensure full alignment with regulatory requirements and compliance standards.
Revised the IDC terms of reference to strengthen the committee’s role, ensuring enhanced oversight and governance.
Designed and implemented the automation of the insider management process to be launched in 2025. The automation will enhance operational efficiency and accuracy, streamlining the management of insider activities and compliance measures.
Conducted comprehensive reviews of quarterly trading reports, providing detailed analysis of share price trends, major buyers and sellers, and overall market impacts.
Evaluated critical disclosures to proactively
activities and compliance measures. identify and mitigate potential impacts on
• Reviewed and updated the Disclosure the Company’s reputation and share price.
Policy, Share Dealing and Insider Information

Organisational structure

TECOM Group has a dynamic management team comprised of seasoned executives with a proven track record and operating experience in the real estate industry.

Ammar Al Malik

Saud Abu Alshawareb

Ahmed Al Mheiri

Executive Vice President Commercial Leasing

Executive Vice President Industrial Leasing

Senior Vice President Business Services

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Abdulla Belhoul Chief Executive Officer

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Haif Zamzam

Abdulla Bahroozyan

Abdulla AlKohaji

Senior Vice President Strategy and Marketing

Senior Vice President Senior Vice President Engineering Business Support

Michael

Wunderbaldinger Chief Financial Officer

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Financial Statements

Corporate Governance

Strategic Report ESG Corporate Governance

Strategic Report

ESG

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Abdulla Belhoul

Chief Executive Officer

Before he was appointed as Chief Executive Officer, Abdulla was the Chief Commercial Officer of DHAM, where he managed an extensive portfolio of 10 business districts, 20 leading retail destinations, and 15 residential communities.

Abdulla was appointed Chief Executive Officer of Dubai Industrial City in 2013 and Chief Commercial Officer of TECOM Group in 2018.

Between 2007 and 2013, Abdulla held various leadership positions in Dubai Holding, overseeing the construction of key projects that make up Dubai’s skyline today. From 2002 to 2007, he held various managerial positions at the Dubai World Trade Centre and the Dubai Department of Civil Aviation Engineering.

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Michael Wunderbaldinger

Chief Financial Officer

Michael joined TECOM Group in 2014 as the Chief Financial Officer and served as the Chief Financial Officer of DHAM from 2020 to June 2022. Before joining TECOM Group, Michael was the Chief Financial Officer at Unibail-Rodamco-Westfield from 2007 to 2013, a listed and fully integrated commercial real estate conglomerate in Europe, where he was responsible for operations in Central and Eastern Europe. Between 1997 and 2007, Michael held various chief financial officer and chief operating officer roles at General Electric (GE Capital), with various responsibilities for European-wide operations in the banking and real estate industries.

Michael stepped down as Chief Financial Officer for personal reasons. Haissam Baydoun, VP Corporate Finance, was appointed as Acting Chief Financial Officer, effective 10 February 2025.

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Ammar Al Malik

Executive Vice President Commercial Leasing

With more than 20 years of leadership experience in the technology and business development sectors, Ammar plays a pivotal role in shaping TECOM Group’s strategic vision.

Ammar leads the growth of Dubai Internet City and Dubai Outsource City, which together comprise TECOM Group’s Tech Cluster, and has overseen its evolution into the region’s leading hub for technology. He also oversees districts contributing to Dubai’s knowledge-based economy, including Dubai Media City, Dubai Studio City, Dubai Production City, Dubai Knowledge Park, Dubai International Academic City, Dubai Science Park, Dubai Design District (d3), in5, and D/Quarters.

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Saud Abu Alshawareb

Executive Vice President Industrial Leasing

Saud is responsible for nurturing relationships with customers and attracting new business, determining Dubai Industrial City’s strategic vision, and planning and implementing long-term business strategies to develop the sector as Dubai becomes a major destination for local, regional and global industrial and logistics companies. Saud has extensive experience and expertise in the food and beverage, machinery and equipment, transportation, minerals, base metals and chemical sectors.

Saud joined TECOM Group in 2006. He previously held the positions of managing director and chief operating officer at Dubai Industrial City.

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Haif Zamzam

Senior Vice President Strategy and Marketing

Haif joined TECOM Group in July 2020. Between 2016 and 2020, Haif held various leadership positions at Abu Dhabi National Oil Company (ADNOC), including Vice President of Transformation & Business

Support and Vice President of Group Strategy From 2015 to 2016, Haif was responsible for overseeing and managing the energy assets within Mubadala Development Company’s portfolio. Prior to that, she worked with Boston Consulting Group on a range of projects in the GCC region (for public and private sectors). Haif began her career in 2008 at Masdar Group, where she was an active private equity investor and asset manager.

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Abdulla AlKohaji

Abdulla Bahroozyan

Senior Vice President Business Support

Senior Vice President Engineering

Abdulla joined TECOM Group in November Abdulla is responsible for the provision of 2024 as Senior Vice President of Business state-of-the-art services and value-added Support. Abdulla oversees Group functions, engineering management solutions to including Human Capital, Information TECOM Group in the areas of sustainable Technology & Procurement, and Contracts building solutions, facilities management, in his role. A seasoned leader with roots in HSE, project delivery, interior design and human resources and business administration, overall property management. Abdulla Abdulla brings two decades of experience joined TECOM Group in 2012 as Director of to the Group and has previously pioneered Facilities Management. Before that, Abdulla transformative initiatives at a diverse range of was in charge of facilities maintenance at industry leaders, including Nakheel, EMAL, National Petroleum Construction Company. Emirates Global Aluminium, Dubai Electricity He was also responsible for executing the and Water Authority, and Dubai International construction of offshore and onshore camp Financial Centre. Specialised in overseeing accommodations, as well as office renovation business transformation programmes, and refurbishment. Abdulla commenced his Abdulla is a highly respected executive career in 2007 as a Civil Engineer at Dubai known for creating sustainable, agile, and Technology and Media Free Zone Authority. innovative workplaces by nurturing digital transformation, strategic workforce planning, and organisational excellence.

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Ahmed Al Mheiri

Senior Vice President Business Services

Ahmad joined TECOM Group in 2017 as an Executive Director in axs. He was responsible for leading digital transformation initiatives and the adoption of state-of-theart technologies, enabling the platform to provide a smooth, 24/7 experience. Before 2017, Ahmad was the Executive Director of Business Development, Real Estate and Government Services at twofour54. Ahmad has extensive experience, having over 15 years of experience working within free zones in the UAE, including Khalifa Industrial Zone and Jebel Ali Free Zone Authority.

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RELATED PARTY TRANSACTIONS

INTERNAL CONTROLS AND COMPLIANCE

Financial Statements

Corporate Governance

Strategic Report ESG Corporate Governance

Strategic Report

ESG

Executive renumeration

The details of the executive management, their jobs, date of appointment and total salaries for the fiscal year 2024 are defined hereafter. The bonuses for 2024 will be considered by the NRC and approved by the Board in H1 2025.

		Total Salaries and	Total Bonuses	Any other Cash/ In-kind Bonuses
Position	Appointment Date	Allowances Paid for 2024 (AED)	Paid during 2024* (AED)	for 2024 or Due in the Future
Chief Executive Officer	7 January 2007	2,640,000	2,400,000	–
Chief Financial Officer	1 April 2014	2,040,000	1,615,000	–
Executive Vice President – Commercial Leasing	4 September 2005	1,340,000	880,000	–
Executive Vice President – Industrial Leasing	28 August 2006	1,340,000	880,000	–
Senior Vice President – Strategy and Marketing	1 July 2020	1,080,000	396,000	–
Senior Vice President – Engineering	1 April 2012	1,020,000	374,000	–
Senior Vice President – Business Services	4 September 2017	1,020,000	391,000	–
Senior Vice President – Business Support	18 November 2024	121,834	–	–

*Bonuses paid for 2023 as approved by the Board during Q1 2024

Related party transactions

The Company has not entered into any transaction with related parties under the definitions provided for these terms in the Governance Guide: “The Chairman, Directors and their relatives, senior executive management and their relatives, employees, companies in which any of those referred to above contribute by not less than thirty per cent (30%) of their capital, the Parent Company, Subsidiary, Sister or Affiliate Companies, major shareholders (whoever owns five per cent (5%) or more of the Company’s shares or voting rights therein), chairman and members of the board of directors of the Parent Company, Subsidiary, Sister or Affiliate Companies, companies in which any of the Chairman, or Directors or senior executive management is a member of its board of directors or a senior executive.”

Please refer to Note 10 in the notes to the audited financial statements, as it provides the key related party transactions, as such term is defined in the International Financial Reporting Standards (IFRS), which are already reflected in the consolidated financial statements for the year 2024 and carried out during the year in the normal course of business on the terms agreed between the parties.

Internal controls and compliance

The Board’s responsibility is to establish a robust framework that ensures the effectiveness of the internal control system. The AC and RC support the Board by reviewing the effectiveness of the Company’s internal control and risk management systems and assessing emerging and principal risks.

TECOM Group operates a three-line defence model, which enables us to achieve effective risk management and internal control across the organisation.

Since 1 July 2022, Jahangir Ali Muhammad (Vice President of Internal Audit) has headed the IA Department. He has more than 24 years of experience in internal and external auditing, risk management, corporate governance, compliance, and fraud investigations. He is a Chartered Certified Accountant (FCCA), Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), and UAE Chartered Accountant (UAECA).

The IA Department assists the Company in achieving its goals by employing a systematic and disciplined approach to evaluate and enhance risk management, internal control systems, and governance processes.

Three-line defence model

Three-line defence model In the event of identifying a major problem within the scope of the IA process, the IA team collaborates with other functions/ departments within the Company to develop The first line, represented by business and process owners, and implement a plan to effectively address plays a critical role in managing risks. They establish and the issue. This plan may involve introducing maintain appropriate structures and processes for the new controls or procedures, providing First line management of operations and risk, including internal employee training, or implementing other Management control. The first line is accountable for the ongoing corrective actions. As per the approved management of risks through direct assessment, control, annual audit plan, the IA Department has not and mitigation and building an efficient control system for their functions. encountered any significant issues within the Company that require disclosure in 2024. During 2024, IA conducted 19 audits, The second line helps ensure that the first line is properly including a special review, and submitted designed, established, and operating effectively. These four quarterly IA reports to the AC, functions complement the business’s risk activities through summarising the key findings from the Second line their monitoring and reporting responsibilities. The audits and reviews conducted during each Risk and Risk function reports to the RC, while the AC oversees quarter, the status of the audit log and key Compliance Compliance. outstanding issues, and the progress of the audit plan. In 2024, the TECOM Group’s Internal The Internal Audit (“IA”) department provides the AC and Audit department underwent an external management with independent and objective assurance assessment to evaluate its compliance on the effectiveness of governance, risk management, and with the International Professional Practice Third line internal controls. This includes how the first and second Framework (IPPF). The department received Independent lines achieve risk management and control objectives. The the highest rating, “Generally Conforms,” in assurance IA Department reports to the Board via the AC to ensure the assessment. the independence of the Department and its staff in performing their entrusted duties and responsibilities.

First line Management

No material violations were committed by the Company during 2024.

For more on TECOM Group’s approach to risk management, please see page 82.

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INTERNAL CONTROLS AND COMPLIANCE – CONTINUED

Financial Statements

Corporate Governance

Strategic Report ESG Corporate Governance

Strategic Report

ESG

Continued ICFR governance and compliance supporting TECOM Group’s sustainable Growth and Ethical Corporate Culture

Building upon the effective Internal Control over Financial Reporting (ICFR) framework aligned with the COSO framework that was adopted last year, TECOM Group continued its ICFR governance journey to enhance its operational integrity and ethical corporate culture.

Compliance with the

ICFR framework

The ICFR framework provides a clear governance structure, delineating roles and responsibilities across the organisation. This structure ensures that everyone understands and executes their responsibilities effectively.

Our ICFR framework outlines various activities to be performed throughout the year, aiming to achieve defined objectives. These activities, supported by detailed guidelines, provide a solid basis for consistent and reliable financial reporting.

Key components of our ICFR activities for 2024 involve:

Risk assessment: The TECOM Group team extensively evaluated over 265 risks and controls, ensuring that potential vulnerabilities were identified and mitigated effectively.

• Documentation review: More than 500 documents were thoroughly reviewed to ensure compliance with established guidelines and maintain the integrity of financial reporting.

This detailed ICFR governance exercise is a testament to our unwavering dedication to maintaining the highest standards of financial integrity and transparency. As we continue to strengthen our internal controls and compliance mechanisms, we remain committed to sustainable growth and fostering an ethical corporate culture that prioritises accountability and trustworthiness. Through these initiatives, TECOM Group not only complies with regulatory obligations but also lays a solid foundation for its future success and resilience in a dynamic business environment.

Risk Officer

Matthew Madanat joined TECOM Group on 25 May 2023 as the Risk and Compliance Director, bringing over a decade of experience in risk management and compliance. His previous roles at Deloitte and PwC equipped him with extensive expertise in enterprise risk frameworks, business continuity management, and strategic risk mitigation for listed and private entities.

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As Risk Officer, Matthew is leading TECOM Companies), which prohibits combining the Group’s efforts to embed a proactive risk role of Compliance Officer with any other culture and strengthen its resilience against function or role within the company, TECOM emerging risks. His leadership ensures that Group has initiated the process of hiring a risk management practices are seamlessly dedicated Compliance Officer. integrated with TECOM Group’s strategic objectives and stakeholder expectations. During this interim period, Matthew

During this interim period, Matthew Madanat, Risk Officer, will serve as Interim Compliance Officer to ensure continuity and adherence to regulatory requirements. Matthew’s extensive background in establishing and managing compliance programmes ensures that TECOM Group maintains the highest standards of regulatory alignment and governance.

Compliance Officer

In compliance with Clause (5) of Article (69) of Chairman of the Board of the Authority Decision No. 02/R.M of 2024 (Amendment of the Chairman’s Decision No. 3/R.M for the year 2020 concerning the Corporate Governance Guide for Public Joint Stock

The appointment of a dedicated Compliance Officer is expected to be finalised in 2025, further reinforcing TECOM Group’s commitment to meeting SCA’s requirements and fostering a culture of integrity. External auditor Deloitte in the UAE is part of Deloitte & Touche (M.E.). Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL). A core practice within the Middle East region, today, Deloitte in the UAE has over 1,100 professionals based within five practice offices in Dubai, Abu Dhabi, Fujairah, Ras Al Khaimah, and Sharjah. They are a full-service firm in the UAE and have well-developed practices serving leading enterprises and institutions in banking and financial services, real estate, leisure and hospitality, construction, public sector activities, trading, manufacturing, telecom, retail, energy, and resources.	Name of the audit office and partner auditor Deloitte & Touche (M.E.) Partner:Firas Anabtawi
	Number of years served as the Company’s external auditor Six years (2019-2024)
	The number of years that the partner auditor spent auditing the Company’s accounts Two (2) Years
	Total audit fees for 2024 (AED) AED 1,600,000
	Fees and costs of private services other than auditing the financial statements for 2024 (AED), if any, and in case of absence of any other fees, shall be expressly stated. AED 378,000 To issue an opinion on the effectiveness of the Internal Controls over Financial Reporting (ICFR). AED 50,000 To conduct a special purpose audit for corporate tax
	Details and nature of the other services (if any). If there are no other services, this matter shall be stated expressly. Nil
	Statement of other services that an external auditor other than the Company accounts auditor provided during 2024 (if any). In the absence of another external auditor, this matter is explicitly stated. No other external auditor provided services during 2024.

There were no reservations that Deloitte

Their clients include many of the United There were no reservations that Deloitte Arab Emirates’ largest entities and clients & Touche (M.E.) included in the interim in energy and resources, financial services financial statements and the annual financial institutions, real estate, construction, trading, statements for 2024. and manufacturing in the public and governmental sectors.

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Transparent and Robust Engagement

At TECOM Group, we value fostering transparent and robust engagement with our investors.

Our commitment to this endeavour is deeply rooted in the belief that a well-informed investment community is fundamental to understanding our strategic direction and unique value proposition.

We aim to ensure that our shareholders and potential investors are not just observers but informed participants in our journey. Throughout the year, we have actively participated in several investor conferences, conducted numerous investor meetings and hosted quarterly earnings calls. These initiatives are designed to provide comprehensive insights into the key drivers of our financial and operational performance, framed within the context of broader macroeconomic and operational conditions. Such transparency guides us in building trust and interest in the TECOM Group story, thereby widening our shareholder base.

For more about how TECOM Group engages our shareholders, please see page 90.

High Low Close 3.5 3.4 3.3 3.2 3.1 3.0 2.9 2.8 2.7 2.6 2.5 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC r Investor Relations Policy guides our ationship with our shareholders to ensure t we fulfil our obligations towards them, serve their rights, provide them with required information to make informed cisions and establish sound relations h them in accordance with regulatory uirements and best practices. Ghaith Zghaibi was appointed Head nvestor Relations on 27 June 2022. He s over 17 years of experience in finance d investment management, working at owned private and listed companies he UAE. He has more than 10 years of experience in investor relations and capital markets. He holds a master’s degree in business administration from the American University in Dubai. Contact information: Mr. Ghaith Zghaibi, Head of Investor Relations Telephone: +97145682571 Email: [email protected] Shareholders can reach the investor relations page on the Company’s website, www.tecomgroup.ae/investor-relations Share price activity during 2024 TECOM Group PJSC was admitted to trading on DFM on 5 July 2022. The share price activity defined hereafter is for the period 01 January to 31 December 2024.	The Company’s comparative performance with the general market index and sector index to which it belongs during 2024
	2024 Monthly Performance of TECOM Group Shares
	Month TECOM Group DFMGI Real Estate
	January 2.69 4,169.08 7,018.72
	February 2.63 4,308.77 7,709.55
	March 2.76 4,246.27 8,034.12
	April 2.76 4,155.77 8,022.90
	May 2.79 3,977.93 7,389.83
	June 2.60 4,030.00 7,781.15
	July 2.74 4,268.05 8,173.24
	August 3.12 4,325.45 8,067.95
	September 3.21 4,503.48 8,316.20
	October 3.20 4,591.05 8,458.00
	November 3.27 4,847.34 9,682.54
	December 3.15 5,158.67 11,948.82

Our Investor Relations Policy guides our relationship with our shareholders to ensure that we fulfil our obligations towards them, preserve their rights, provide them with the required information to make informed decisions and establish sound relations with them in accordance with regulatory requirements and best practices.

Mr. Ghaith Zghaibi was appointed Head of Investor Relations on 27 June 2022. He has over 17 years of experience in finance and investment management, working at renowned private and listed companies in the UAE. He has more than 10 years of

Shareholders’ ownership distribution as of 31 December 2024 Shareholders Classification Percentage of Owned Shares Individuals Companies Banks Government Total Local 1.95% 91.37% 0.91% 1.34% 95.57% Arab 0.08% 0.00% – – 0.08% GCC 0.35% 2.19% 0.01% – 2.55% Foreign 0.17% 1.63% 0.00% – 1.80% Total 2.55% 95.19% 0.92% 1.34% 100.00% Shareholders owning 5% or more of the Company’s capital as of 31 December 2024 Name Number of Owned Shares Percentage of Owned Shares of the Company’s Capital DHAM L.L.C. 4,235,000,000 86.50%	Shareholders distribution Category Number of Investors Owned Quantity Owned Quantity %
	Less Than 50,000 6,430 16,857,283 0.337
	Between 50,000 and 500,000 211 32,537,902 0.651
	Between 500,000 and 5,000,000 84 133,840,471 2.677
	Greater than 5,000,000 23 4,816,764,344 96.335
	Total 6,748 5,000,000,000 100
	Supporting our society and environment TECOM Group drives positive change by partnering with trusted organisations and supporting charitable initiatives that enhance community well-being. In 2024, the Group collaborated with the Dubai Charity Association for the annual WeWalk charitable walkathon to raise awareness of diabetes and engaged with Beit Al Khair Society to distribute Iftar meals during Ramadan. For more details, refer to the Community Pillar in the ESG Report on page 113. Driving innovation and engagement TECOM Group’s reputation as a dynamic centre of innovation was reinforced in 2024 as we continued to identify and implement novel, differentiated products and services across our ecosystems to meet changing industry dynamics and customer needs. As business requirements change and working ways evolve, proactive innovation is a critical component of our future sustainable growth. TECOM Group and our vibrant communities across Dubai continued to set the pace in 2024, organising, hosting and taking part in a plethora of events and programmes covering a wide range of key issues and exciting initiatives, including:

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2024 EVENTS AND PROGRAMMES – CONTINUED

2024 EVENTS AND PROGRAMMES

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January ‘24 February ‘24 March ‘24 April ‘24 May ‘24
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||||||
|---|---|---|---|---|
|Arab Health|Dubai Fashion Week|Dubai Lynx|Milano Durini Design|CABSAT|
|Dubai Science Park|Autumn/Winter|Dubai Media City partnered with|Association|Dubai Studio City announced|
|participated in the region’s|The third edition of|Dubai Lynx to unite the world’s|Dubai Design District (d3)|contributions to the regional|
|leading healthcare event|Dubai’s official fashion|brightest minds and creative talent.|expanded its global footprint with|content creation economy at|
|alongside key industry|week created the optimal|its first networking and knowledge-|CABSAT 2024, the world’s leading|
|players.|window for global visibility|The Good Store|sharing event in Milan alongside|event for the broadcasting sector.|
|and buyers’ attendance.|Emirates Red Crescent and|Milano Durini Design Association.|
|Bett UK|TECOM Group reintroduced|GITEX Africa|
|Dubai Knowledge Park|Step Conference|The Good Store to enable|Dubai Internet City showcased the|
|and Dubai International|in5 presented 10 of|seamless donations during|best of African technology and|
|Academic City showcased|its most innovative|Ramadan and Eid al-Fitr for the|innovation from its community at|
|the city’s appeal to|enterprises at Step|second consecutive year.|GITEX Africa 2024.|
|global students.|Conference 2024, held|
|in Strategic Partnership|Annual General|Drupa|
|with Dubai Internet City|Assembly Meeting|Dubai Production City participated|
|each year.|TECOM Group PJSC held|in Drupa, the world’s leading trade|
|its Annual General Assembly|fair for the printing and graphics|
|Gulfood|Meeting at Thuraya Hall in Dubai|sector, held in Germany.|
|Dubai Industrial City|Internet City. During the meeting,|
|announced robust annual|shareholders approved the|Make it in The|
|growth at the region’s|Group’s financial statements for|Emirates Forum|
|leading F&B industry|the year ended 31 December|Dubai Industrial City unveiled its|
|event, Gulfood 2024.|2023 and a recommendation by|13.9 million sq. ft. expansion at|
|the Board of Directors to distribute|Make it in the Emirates Forum 2024.|
|a cash dividend of AED 400 million|
|in April 2024, bringing the total|Arab Media Forum|
|amount of dividend distributions|TECOM Group joins Dubai Media|
|for 2023 to AED 800 million.|Council’s Emirati Media Talent|
|Pledge to nurture the national|
|talent pool.|

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June ‘24 September ‘24 October‘24 November ‘24 December ‘24 London Tech Week EAIE SIAL Dubai Design Week 2024 Sole DXB Dubai Internet City Dubai Knowledge Park and Dubai Industrial City attended Dubai Design Week’s milestone 10th Dubai Design District hosted showcased pathways to Dubai International Academic the globally renowned food edition unites over 500 established and the 12th edition of Sole nurture innovation for City report growth in the exhibition SIAL Paris 2024 as emerging designers and brands from DXB, the UAE’s leading global good at London European student community part of the Dubai Department more than 40 countries. contemporary culture festival. Tech Week 2024. at EAIE Toulouse 2024. of Economy and Tourism (DET) delegation. Design Next Al Manama exhibition Innovate for Dubai Design District (d3) and Isola In celebration of Eid Al Tomorrow GITEX Global Design Group launched the Design Etihad 53, a vibrant cultural Global sustainability Dubai Internet City showcased Next exhibition to empower the circular programme was organised in challenge Innovate for the transformative impact of economy. partnership with Dubai Design Tomorrow highlighted collaborative innovation as a District (d3), marking a dynamic impact-driven solutions Knowledge Partner of GITEX Global Media Congress 2024 intersection of architecture, that address sustainability Global 2024. Dubai Media City showcased the power design and heritage. issues with in5 as of its community’s multicultural creativity Conceptualised by Emirati Execution Partner. Broadcast India at the Global Media Congress. urbanists and researchers Dubai Studio City showcased Ahmed and Rashid bin Shabib Dubai Fashion Week the growing footprint of its Dubai Industrial City in collaboration with Cartier, the ecosystem’s global talent in its 20th anniversary Manamas reimagined Emirati Spring/Summer 2025 Italian fashion house Roberto ecosystem as a Platinum Partner Dubai Industrial City marked its 20th architecture in contemporary Cavalli closed the shows of the of the Broadcast India Show anniversary as the Middle East’s leading form while preserving the rich in Mumbai. manufacturing and logistics hub, heritage of the UAE. Spring/Summer 2025 edition of Dubai Fashion Week held on demonstrating the collaborative power Dubai Internet City of the public and private sectors. 1-7 September. 25th anniversary Dubai Internet City marked its WeWalk 25th anniversary of enabling the The fifth edition of the annual WeWalk Middle East’s digital economy charity walkathon united over 2,000 and uniting global tech industry participants to raise awareness and leaders and talent. funds for diabetes in partnership with Dubai Charity Association.

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Financial Statements

Financial Statements	Our strategy prioritises operational excellence and financial resilience to ensure sustainable growth. Board of Directors’ Report 168
	Independent Auditor’s Report 169
	Consolidated Financial Statements 173
	Notes to the Consolidated Financial Statements 177
	EPRA Performance Measures 216
	Glossary 225

Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

Corporate Governance

Board of Directors’ Report

Dear Shareholders and Readers

The Board of Directors of TECOM Group PJSC (the “Company”) has the pleasure in submitting their report and the audited consolidated financial statements of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2024.

Board of Directors

The Board of Directors comprised of:

Chairman Mr. Malek Sultan Rashed Almalek Vice Chairman Mr. Ahmed Al Qassim Members Mr. Amit Kaushal Mr. Omar Karim Ms. Fatma Hussain Ms. Aisha Abdulla Miran Mr. Aref Abdulrahman Ahli

Principal activities

The principal activities of the Group are property leasing, development, facilities management and services.

Financial highlights

In 2024, TECOM Group delivered impressive financial results, achieving significant growth in both revenue and net profit compared to the previous year. This outstanding accomplishment was driven by a combination of strong portfolio performance, strategic investments in high-potential assets and a proactive approach to cost optimization.

The remarkable growth in financials was primarily driven by a robust 11% increase in revenue, which hit a record-breaking AED 2,402 million in 2024, compared to AED 2,173 million in the previous year. Overall, net profit for the year surged by 14%, reaching AED 1,228 million, up from AED 1,078 million in 2023. This exceptional performance reflects the company’s successful execution of its growth strategy, including expanding market share and capitalizing on emerging opportunities.

In accordance with the Articles of Association of the Company and applicable UAE Federal Law, an apportionment of AED 24 million is made to statutory reserve from the profits of the subsidiaries of the Group.

On 5 February 2025, the Board of Directors has recommended cash dividend of AED 400 million (AED 0.08 per share), which is subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Company.

The balance of the distributable profit after considering appropriation to statutory reserve and proposed dividend will be transferred to retained earnings.

As at 31 December 2024, total equity attributable to owners of the Company amount to AED 6,708 million (2023: AED 6,329 million), total liabilities of AED 9,583 million (2023: AED 8,485 million), Cash and bank AED 1,017 million (2023: AED 1,535 million) and total assets of AED 16,291 million (2023: AED 14,814 million). Investment properties of the Group were fair valued at AED 27,874 million (2023: AED 22,935 million).

Transactions with related parties

The audited consolidated financial statements disclose related party transactions and balances in note 10. All transactions are carried out in compliance with applicable laws and regulations.

Outlook 2025

As economic activity intensifies, demand for infrastructure, real estate, and commercial space is expected to rise, reflecting broader confidence in the UAE’s long-term growth trajectory.

Looking into 2025 and beyond, sustained economic growth and favourable market conditions will likely continue driving demand across commercial offices and industrial real estate segments.

By expanding our development portfolio and enhancing existing assets, the Group is strategically positioned to meet the growing demand for premium spaces in key, wellconnected locations. We are committed to delivering tailored solutions, fostering strong customer relationships, and adapting pricing to market dynamics. Our strategy prioritises operational excellence and financial resilience to ensure sustainable growth, positioning the business for sustained profitability and long-term success.

Auditors

The consolidated financial statements for the year ended 31 December 2024 have been audited by Deloitte & Touche (M.E.).

For the Board of Directors

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Malek Sultan Rashed Almalek

Chairman Dubai, United Arab Emirates

5 February 2025

Independent Auditor’s Report

The Shareholders

TECOM Group PJSC Dubai United Arab Emirates

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

Basis for opinion

Opinion

We have audited the consolidated financial statements of TECOM Group PJSC (the “Company”) and its subsidiaries (together, the “Group”), which comprise the consolidated balance sheet as at 31 December 2024, and the consolidated statement of income, consolidated statement of other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the other ethical requirements that are relevant to our audit of the Group’s consolidated financial statements in the United Arab Emirates, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2024, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters:

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Impairment assessment of investment properties
Key audit matter How the matter was addressed in our audit
The Group’s investment properties portfolio is carried at AED 13,820 million in the We assessed the controls in the process over the determination of the valuation of
consolidated balance sheet. Investment properties are carried at cost less accumulated investment property to determine if they had been appropriately designed and
depreciation and accumulated impairment, if any. implemented.
The Group undertakes a review of indicators of impairment and, wherever indicators We assessed the valuer’s competence, capabilities, independence and objectivity and
of impairment exist, an impairment assessment is performed by determining if the read their terms of engagement with the Group to determine that the scope of their work
recoverable amount based on qualitative and quantitative factors, exceeds or is equal was sufficient for audit purposes.
to its carrying amount.
We tested the data provided to the valuer by the Group, on a sample basis by agreeing
Ascertaining the value of these properties is a significant judgement area and is the data to the Group’s accounting records.
underpinned by a number of assumptions. The determination of the recoverable amount
of these investment properties is based on external valuations using the income approach
and sales comparable approach for its assets.
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Corporate Governance

Independent Auditor’s Report (continued)

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

Key audit matters (continued)

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Impairment assessment of investment properties
Key audit matter How the matter was addressed in our audit
The Group’s income approach requires valuers to make significant estimates and We involved our internal real estate valuation specialist to review selected properties and
assumptions related to future occupancy levels, growth rates, rental rates, and discount assessed whether the valuation of the properties was performed in accordance with IFRS
rates. The sales comparable approach requires the valuers to examine and analyse Accounting Standards.
market transaction/data and requires adjustments to be made for the data to account
for individual characteristics. Further, the Group allocates common infrastructure costs We assessed and challenged the underlying key assumptions used in the recoverable
(including cost to complete) on properties in the portfolio on a systematic basis. amount assessment and estimation of cost to complete infrastructure work.
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Accordingly, the allocation of estimated infrastructure cost and valuation of its underlying assets is a significant judgement area based on a number of assumptions. The existence of significant estimation uncertainty warrants specific audit focus in this area as any bias or error in determining the cost base of investment properties and its recoverable amount could lead to a material misstatement in the consolidated financial statements. The Group engaged a valuer to assist them in determining the fair value of investment properties.

We performed sensitivity analyses on the significant assumptions to evaluate the extent of their impact on the determination of fair values.

We reperformed the arithmetical accuracy of the determination of infrastructure cost allocations and recoverable amounts.

We assessed the disclosures made relating to this matter to determine if they were in accordance with IFRS Accounting Standards.

We considered the impairment of investment properties as a key audit matter because of the quantitative materiality of the balance and the significant judgements applied and estimates made in determining the fair value.

Refer to notes 4 (d), 4 (e) and 6 for more information regarding the impairment assessment of investment property.

Other information

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management is responsible for the other information. The other information comprises the information included in the Annual Report (including the Board of Directors’ Report) but does not include the consolidated financial statements and our auditor’s report thereon. We obtained the Board of Directors’ Report, at the date of our auditors’ report, and we expect to obtain the remaining sections of the Annual Report after the date of the auditors’ report.

When we read the remaining information of the annual report of the Group, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Responsibilities of management and those charged with governance for the consolidated financial statements

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the IASB and their preparation in compliance with the applicable provisions of the UAE Federal Decree

Law No. (32) of 2021 and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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Corporate Governance Financial Statements

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Strategic Report ESG

Independent Auditor’s Report (continued)

Report on other legal and regulatory requirements

As required by the UAE Federal Decree Law No. (32) of 2021, we report that for the year ended 31 December 2024:

we have obtained all the information we considered necessary for the purposes of our audit;
the consolidated financial statements have been prepared and comply, in all material respects, with the applicable provisions of the UAE Federal Decree Law No. (32) of 2021;
the Group has maintained proper books of account;
the financial information included in the Board of Directors’ Report is consistent with the books of account of the Group;
the Group has not purchased or invested in any shares during the financial year ended 31 December 2024;
note 10 to the consolidated financial statements discloses material related party transactions, and the terms under which they were conducted;
note 26 to the consolidated financial statements discloses social contributions made during the year; and
based on the information that has been made available to us, nothing has come to our attention which causes us to believe that the Group has contravened during the year ended 31 December 2024, any of the applicable provisions of the UAE Federal Decree Law No. (32) of 2021 or in respect of the Company, its Articles of Association which would materially affect its activities or its financial position as at 31 December 2024.

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Deloitte & Touche (M.E.)

Firas Anabtawi

Registration No. 5482

5 February 2025

Dubai

Consolidated Balance Sheet As at 31 December 2024

Consolidated Balance Sheet As at 31 December 2024	Strategic Report ESG Corporate Governance Financial Statements
Notes 2024 AED’000 2023 AED’000 ASSETS Non-current assets Property and equipment 5 90,893 93,459 Intangible assets 16,688 20,427 Investment property 6 13,819,597 11,864,542 Derivative financial instruments 7 165,440 221,995 Other receivables 8 11,347 14,215 Unbilled receivables 9 821,126 802,057 Deferred tax assets 28 4,922 – 14,930,013 13,016,695 Current assets Other receivables 8 106,814 124,803 Trade and unbilled receivables 9 181,757 102,159 Due from related parties 10 54,990 35,425 Cash and bank balances 11 1,017,039 1,535,183 1,360,600 1,797,570 Total assets 16,290,613 14,814,265 EQUITY AND LIABILITIES Equity Share capital 12 500,000 500,000 Statutory reserve 13 482,696 458,410 Hedge reserve 169,231 218,995 Retained earnings 5,555,767 5,151,602 Total equity 6,707,694 6,329,007	Notes 2024 AED’000 2023 AED’000
	LIABILITIES Non-current liabilities Trade and other payables 14 2,728 3,304 Borrowings 15 5,213,253 4,351,767 Advances from customers 16 606,757 623,533 Project liabilities 17 786,913 829,445 Due to related parties 10 92,766 – Derivative financial instruments 7 1,131 3,000 Employees’ end-of-service benefits 18 46,733 43,912 Provision for other liabilities and charges 19 902,807 902,807
	7,653,088 6,757,768
	Current liabilities Trade and other payables 14 330,330 348,523 Advances from customers 16 969,223 836,605 Current tax liabilities 28 38,222 – Project liabilities 17 473,596 460,533 Due to related parties 10 90,604 60,244 Provisions for other liabilities and charges 19 27,856 21,585
	1,929,831 1,727,490
	Total liabilities 9,582,919 8,485,258
	Total equityand liabilities 16,290,613 14,814,265
	These consolidated financial statements were approved by the Board of Directors on 5 February 2025 and were signed on its behalf by:

These consolidated financial statements were approved by the Board of Directors on 5 February 2025 and were signed on its behalf by:

United Arab Emirates

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Malek Sultan Rashed Almalek Chairman

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Abdulla Belhoul Chief Executive Officer

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Michael Wunderbaldinger Chief Financial Officer

The accompanying notes form an integral part of these consolidated financial statements.

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Consolidated Statement of Income For the year ended 31 December 2024

Consolidated Statement of Income For the year ended 31 December 2024
	2024	2023
	Notes AED’000	AED’000
Revenue	21 2,402,002	2,173,197
Direct costs	22 (849,540)	(760,382)
Gross profit	1,552,462	1,412,815
Other operatingincome	23 137,503	56,055
Expenses	1,689,965	1,468,870
General and administrative	24 (204,942)	(166,997)
Marketing and selling	26 (54,478)	(42,823)
Other operating	(6,193)	–
	(265,613)	(209,820)
Operating profit	1,424,352	1,259,050
Finance income	65,980	81,592
Finance costs	(223,659)	(262,367)
Finance costs – net	27 (157,679)	(180,775)
Profit before tax for theyear	1,266,673	1,078,275
Income tax expense	28 (38,222)	–
Profit for theyear	1,228,451	1,078,275
Earningsper share attributable to the Owners of the Company
Basic and diluted (AED)	29 0.25	0.22

Consolidated Statement of Changes in Equity For the year ended 31 December 2024

Consolidated Statement of Changes in Equity For the year ended 31 December 2024	Strategic Report ESG Corporate Governance Financial Statements
Notes	Attributable to owners of the Company. Share capital AED’000 Statutory reserve AED’000 Hedge reserve AED’000 Retained earnings AED’000 Total equity AED’000
At 1 January 2023 Profit for the year Other comprehensive loss for theyear	500,000 436,321 336,647 4,695,416 5,968,384 – – – 1,078,275 1,078,275 – – (117,652) – (117,652)
Total comprehensive income for theyear	– – (117,652) 1,078,275 960,623
Transactions with owners: Dividends declared 20 Transfer to statutoryreserve 13	– – – (600,000) (600,000) – 22,089 – (22,089) –
	– 22,089 – (622,089) (600,000)
At 31 December 2023	500,000 458,410 218,995 5,151,602 6,329,007
At 1 January 2024 Profit for the year Other comprehensive loss for theyear	500,000 458,410 218,995 5,151,602 6,329,007 – – – 1,228,451 1,228,451 – – (49,764) – (49,764)
Total comprehensive income for theyear	– – (49,764) 1,228,451 1,178,687
Transactions with owners: Dividends declared 20 Transfer to statutoryreserve 13	– – – (800,000) (800,000) – 24,286 – (24,286) –
	– 24,286 – (824,286) (800,000)
At 31 December 2024	500,000 482,696 169,231 5,555,767 6,707,694

Consolidated Statement of Comprehensive Income For the year ended 31 December 2024

For the year ended 31 December 2024
		2024	2023
	Notes	AED’000	AED’000
Profit for the year		1,228,451	1,078,275
Items that may be subsequently reclassified to profit or loss
Fair value loss on cash flow hedges, net of tax	7	(49,764)	(93,707)
Less: Cumulativegain arisingon cash flow hedges reclassified toprofit and loss	7	–	(23,945)
Other comprehensive loss for theyear		(49,764)	(117,652)
Total comprehensive income for theyear		1,178,687	960,623

The accompanying notes form an integral part of these consolidated financial statements.

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Consolidated Statement of Cash Flows For the year ended 31 December 2024

Consolidated Statement of Cash Flows For the year ended 31 December 2024
	2024	2023
	Notes AED’000	AED’000
Cash flows from operating activities
Cash generated from operations	30 1,823,174	1,634,959
Payment of employees’ end of service benefits	18 (1,280)	(4,174)
Net cashgenerated from operatingactivities	1,821,894	1,630,785
Cash flows from investing activities
Purchase of property and equipment	5 (6,323)	(7,711)
Payments for investment property, net of advances to contractors, project liabilities
and related provisions	(2,273,995)	(411,227)
Purchase of intangible assets	(7,215)	(13,977)
Due to a related party	–	(150,000)
Movement in fixed deposits with maturities greater than three months	11 486,623	58,547
Interest received	76,540	47,568
Net cash used in investingactivities	(1,724,370)	(476,800)
Cash flows from financing activities
Proceeds from borrowings	850,000	–
Issuance cost paid	–	(53,796)
Interest paid	(179,045)	(166,973)
Dividends paid	20 (800,000)	(600,000)
Restricted cash against borrowingfacility	–	60,000
Net cash used in financingactivities	(129,045)	(760,769)
Net (decrease)/increase in cash and cash equivalents	(31,521)	393,216
Cash and cash equivalents, beginningof theyear	11 669,882	276,666
Cash and cash equivalents, end of theyear	11 638,361	669,882

Notes to the Consolidated Financial Statements For the year ended 31 December 2024

The Group consolidates investments in the following principal subsidiaries:

1. LEGAL STATUS AND ACTIVITIES

TECOM Group PJSC (the “Company”) is a public joint stock with trade license number 577858 issued by the Department of Economy and Tourism in Dubai.

Name of the entity Nature of business	Ownership% 2024 2023
TECOM Investments FZ LLC Developand leaseproperties	100 100
Dubai Industrial CityLLC* Developand leaseproperties	100 100
Dubai Design District FZ LLC Developand leaseproperties	100 100
Tamdeen LLC* Project management engineering and feasibilitystudies	100 100
Dubai Design District Develop and lease properties HospitalityFZ LLC and real estate services	100 100
AXS FZ LLC Incorporation and visa related services	100 100
DMC ButterflyBuildingFZ LLC Real estate services	100 100
Innovation Hub FZ-LLC Real estate services	100 100
IN5 FZ LLC Regional headquarters for real estate services	100 100
DIC 1 FZ LLC Develop properties and real estate services	100 100
DIC 2 FZ LLC Develop properties and real estate services	100 100
DKV 1 FZ LLC Develop properties and real estate services	100 100
Innovation Hub Phase 1 FZ-LLC Real estate services	100 100
Dquarters FZ LLC Regional headquarters for real estate services	100 100

The Company was initially established as a limited liability company on 14 February 2006. The legal status of the Company was converted to a public joint stock company on 30 June 2022 by virtue of Company’s shareholders resolution. On 5 July 2022, the Company listed its 12.5% ordinary shares on the Dubai Financial Market (“DFM” or the “Exchange”) through an Initial Public Offering (“IPO”).

The Company is domiciled in the United Arab Emirates (UAE) and its registered head office address is P.O. Box 66000, Umm Suqeim, Dubai, United Arab Emirates.

The principal activities of the Group are property leasing, development, facilities management and services.

The parent company is DHAM LLC (the “Parent Company”), which is a fully owned subsidiary of Dubai Holding Commercial Operations Group LLC (the “Intermediate Parent Company”). The Intermediate Parent Company is a fully owned subsidiary of Dubai Holding LLC (the “Ultimate Parent Company”). The “Ultimate Shareholder” of the Company was His Highness Sheikh Mohammed Bin Rashid Al Maktoum till 8 January 2023. On 8 January 2023, the Ultimate Shareholder and Ruler of Dubai issued Law No. 1 of 2023, transferring his direct ownership in the Ultimate Parent Company to the Government of Dubai. The Company and its subsidiaries are collectively referred to as the Group (the “Group”).

The ownership percentage represents the beneficial ownership of the Group in these subsidiaries.

The Group only operates in the UAE and has no subsidiaries in foreign jurisdictions.

The Group has not purchased or invested in any shares during the financial year ended 31 December 2024.

The accompanying notes form an integral part of these consolidated financial statements.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

2. MATERIAL ACCOUNTING POLICY INFORMATION

2.1 Statement of compliance

The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) and applicable requirements of the law of the UAE.

2.2 Basis of preparation

The consolidated financial statements are presented in United Arab Emirates (AED) which is the Company’s functional currency and the Group’s presentation currency. All amounts have been rounded to the nearest AED thousands (‘000s), unless stated otherwise.

The consolidated financial statements have been prepared on the historical cost basis, except for the revaluation of financial instruments that are measured at fair values at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The preparation of consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying IFRS Accounting Standards. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.

Certain comparative amounts have been reclassified to conform to the presentation used in these consolidated financial statements.

2.3 Application of new and revised IFRS Accounting Standards

(a) New and revised IFRS Accounting Standards applied with no material effect on the consolidated financial statements

The following new and revised IFRS Accounting Standards, which became effective for annual periods beginning on or after 1 January 2024, have been adopted in these consolidated financial statements. Their adoption has not had any material impact on the disclosures or on the amounts reported in these consolidated financial statements.

Amendments to IFRS 16 Leases relating to Lease Liability in a Sale and Leaseback
Amendments to IAS 1 Presentation of Financial Statements relating to Classification of Liabilities as Current or Non-Current
Amendments to IAS 1 Presentation of Financial Statements relating to Non-current
Liabilities with Covenants
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures relating to Supplier Finance Arrangements

Other than the above, there are no other significant IFRS Accounting Standards and amendments that were effective for the first time for the financial year beginning on or after 1 January 2024.

(b) New and revised IFRS Accounting Standards in issue but not yet effective

At the date of authorisation of these consolidated financial statements, the Group has not applied the following new and revised IFRS Accounting Standards that have been issued but are not yet effective:

	but are not yet effective:
	New and revised IFRS Accounting Standards	Effective for annual periods beginning on or after
	Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates relating to Lack of Exchangeability Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial	1 January 2025
	Instruments: Disclosures regarding the classification and
	measurement of financial instruments	1 January 2026
	IFRS 18 Presentation and Disclosures in Financial Statements	1 January 2027
	IFRS 19 Subsidiaries without Public Accountability: Disclosures	1 January2027

Management anticipates that these new standards, interpretations and amendments will be adopted in the Group’s consolidated financial statements as and when they are applicable and adoption of these new standards, interpretations and amendments may have no material impact on the consolidated financial statements of Group in the period of initial application.

2.4 Principles of consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group applies the acquisition method to account for business combinations regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred also includes the fair value of any asset or liability resulting from a contingent consideration arrangement and fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-byacquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

Acquisition-related costs are expensed as incurred.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in the consolidated statement of income.

Business combinations involving entities under common control do not fall under the scope of IFRS 3 “Business Combinations”. Transfer of businesses under common control is accounted for under the uniting of interest method. Under the uniting of interest method, there is no requirement to fair value the assets and liabilities of the transferred entities and hence no goodwill is created as the balances remain at book value.

The results and cash flows of the entities/businesses under common control are consolidated prospectively from the date of transfer without restatement of the consolidated income statement and the consolidated balance sheet comparatives.

Where settlement of any part of the net identifiable assets acquired is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which similar borrowings could be obtained from independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently re-measured to fair value with changes in fair value recognised in the consolidated statement of income.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised in the consolidated statement of income.

(b) Eliminations on consolidation

Intercompany transactions, balances, income and expenses on transactions between Group companies are eliminated. Profits and losses resulting from intercompany transactions that are recognised in assets are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

(c) Changes in ownership interests in subsidiaries without change in control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

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2. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

2.4 Principles of consolidation (continued)

(d) Disposal of subsidiaries

When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognised in the consolidated statement of income. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to consolidated statement of income.

2.5 Foreign currency translation

(a) Functional and presentation currency

Items included in the consolidated financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in United Arab Emirates Dirhams (“AED”), which is the Company’s functional and Group’s presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated statement of income, except when deferred in other comprehensive income and accumulated in equity as qualifying cash flow hedges and qualifying net investment hedges.

Balances and transactions denominated in US dollars (“USD”) have been translated into the presentation currency at a fixed rate as the exchange rate of AED to USD has been pegged since 1981.

Foreign exchange gains and losses that relate to borrowings are presented in the consolidated statement of income within ‘Finance income/costs’. All other foreign exchange gains and losses are presented in the consolidated statement of income within ‘Other operating income’. Changes in the fair value of monetary securities denominated in foreign currency classified as fair value through other comprehensive income are analysed between translation differences resulting from changes in the amortised cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortised cost are recognised in the consolidated statement of income, and other changes in carrying amount are recognised in other comprehensive income. Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognised in the consolidated statement of income as part of the fair value gain or loss. Translation differences on non-monetary financial assets such as equities classified as fair value through other comprehensive income are included in other comprehensive income.

2.6 Earnings per share

The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic earnings per share is calculated by dividing the consolidated profit or loss attributable to ordinary shareholders of the company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is determined by adjusting the consolidated profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.

2.7 Property and equipment

Property and equipment are stated at cost less accumulated depreciation and accumulated impairment, if any. The cost of property and equipment is its purchase cost together with any incidental costs of acquisition. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is de-recognised. All other repairs and maintenance costs are charged to the consolidated statement of income during the financial period in which they are incurred.

When the development of investment property commences, it is classified under capital work-in-progress until development is complete, at which time it is transferred to the respective category, and depreciated on the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

Land is not depreciated. Depreciation on other assets is calculated using straight-line method, at rates calculated to reduce the cost of assets to their estimated residual value over their expected useful lives, as follows:

Land is not depreciated. Depreciation on other assets is calculated using straight-line method, at rates calculated to reduce the cost of assets to their estimated residual value over their expected useful lives, as follows:	When the development of investment property commences, it is classified under capital work-in-progress until development is complete, at which time it is transferred to the respective category, and depreciated on the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:
Type of assets Years Buildings 20-50 Building interior improvements, furniture and fixtures 3-10 Computer hardware 3-5 Motor vehicles 5 Other assets 3-5	Type of assets Years
	Buildings and infrastructure 20-50
	Any expenditure that results in the maintenance of property to an acceptable standard or

Any expenditure that results in the maintenance of property to an acceptable standard or specification is treated as repairs and maintenance and is expensed in the period in which it is incurred.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each

balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.10).

Where an investment property undergoes a change in use, evidenced by commencement of development with a view to sale or becomes owner-occupied, the property is transferred to property held for development sale or property and equipment respectively.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are recognised within ‘Other operating income’ in the consolidated statement of income.

When investment property is sold, gains and losses on disposal are determined by reference to its carrying amount and are recognized in the consolidated statement of income.

Capital work in progress are properties or assets in the course of construction for production, supply or administrative purposes, are carried at cost, less any recognised impairment loss. Cost includes all direct costs attributable to the acquisition of the property including related staff costs, and for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting policy. When the assets are ready for intended use, the capital work in progress is transferred to the appropriate investment property category and is accounted in accordance with the Group’s policies.

2.8 Investment property

Investment property comprises property held for capital appreciation, rental yields or both, and is carried at cost less accumulated depreciation and impairment losses, if any. Investment property also includes related infrastructure and property that is being constructed or developed for future use as investment property. In addition, land held for undetermined use is classified as investment property and is not depreciated. The Group engages professionally qualified external valuers at least once every three years to determine the fair values for disclosure purposes. The fair values for all other years are updated by management by using models and bases similar to the external valuers.

2.9 Intangible assets

(a) Computer software

The Group’s computer software comprises software acquired or software developed by the Group entities. Acquired computer software licenses are capitalised on the basis of the costs incurred to bring to use the specific software. Costs associated with maintaining computer software programs are recognised as an expense as incurred.

Computer software are carried at cost less accumulated amortisation and impairment losses, if any.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

2. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

2.9 Intangible assets (continued)

(a) Computer software (continued)

Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets when the following criteria are met:

i) it is technically feasible to complete the software product so that it will be available for use; ii) management intends to complete the software product and use or sell it;

iii) there is an ability to use or sell the software product;

iv) it can be demonstrated how the software product will generate probable future economic benefits;
v) adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and
vi) the expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalised as part of the software product include the software development employee costs and an appropriate portion of relevant overheads. These costs are amortised over their estimated useful lives of 3 years. Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

Intangible assets which are in the course of development, are carried at cost, less any recognised impairment losses, if any. When the assets are ready for intended use, the capital work in progress is transferred to the appropriate intangible asset category and is accounted in accordance with the Group’s policies.

(b) Licenses

Separately acquired software licenses are shown at historical cost. They have a finite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses, if any.

(c) Masterplans

The costs of developing the Group’s masterplans are capitalised and are subject to amortisation. These are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount and is included in the consolidated statement of income within ‘Other operating income’. The recoverable amount is the higher of the asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (“cash generating units”).

2.10 Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its property and equipment, investment property and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised in the consolidated statement of income.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the consolidated statement of income to the extent that it eliminates the impairment loss which has been recognised for the asset in prior years.

2.11 Investments and other financial assets

2.11.1 Classification

The Group classifies its financial assets in the following measurement categories:

Those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss); and
Those to be measured at amortised cost.

The classification depends on the Group’s business model for managing the financial assets and contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in the consolidated statement of income or other comprehensive income. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. The Group reclassifies debt instruments only when its business model for managing those assets changes.

2.11.2 Recognition and derecognition

Purchases and sales of financial assets are recognised on the date on which the Group commits to purchase or sell the asset. The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in the consolidated statement of income.

2.11.3 Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.

Transaction costs of financial assets carried at fair value through profit or loss are expensed in the consolidated statement of income.

Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:

Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in the consolidated statement of income and presented in ’Other operating income’.

Impairment losses are presented under ‘General and administrative expenses’ in the consolidated statement of income.

Fair value through other comprehensive income

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income.

Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in the consolidated statement of income.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

2. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

2.11 Investments and other financial assets (continued)

2.11.3 Measurement (continued)

Debt instruments (continued)

When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the consolidated statement of income and recognised in ‘Other operating income’. Interest income from these financial assets is included in ‘Finance income’ using the effective interest rate method.

Exchange gains and losses are presented in ‘Other operating income’ and impairment losses are presented under ‘General and administrative expenses’ in the consolidated statement of income.

Fair value through profit or loss

Assets that do not meet the criteria for amortised cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognised in the consolidated statement of income within ‘Other operating income’ in the year they arise.

Equity instruments

The Group subsequently measures all equity investments at fair value. The Group’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in the consolidated statement of income under other operating income when the Group’s right to receive payment is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in ‘Other operating income’ in the consolidated statement of income as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value.

2.11.4 Impairment of financial assets

IFRS 9 requires the Group to record an allowance for expected credit losses (ECLs) for all trade and unbilled receivables, contract assets, loans and other debt financial assets not held at fair value through profit or loss (FVTPL). ECLs are based on the difference between

the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate.

For trade and unbilled receivables and other receivables, the Group has applied the standard’s simplified approach and has calculated ECLs based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group’s historical credit loss experience, adjusted for forward-looking factors specific to the debtor’s general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting day, including time value of money where appropriate.

(i) Definition of default

The Group considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

When there is a breach of financial covenants by the debtor.
Information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group).

Irrespective of the above analysis, the Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

(ii) Credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events:

Significant financial difficulty of the issuer or the borrower
A breach of contract, such as a default or past due event (see (ii) above)
The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider
It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation
The disappearance of an active market for that financial asset because of financial difficulties

(iii) Write-off policy

The Group writes off a financial asset considering various factors which includes but not limited to the information indicating debtor’s severe financial difficulty and no realistic prospect of recovery. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in the consolidated statement of income.

(iv) Measurement and recognition of expected credit losses

The measurement of ECLs is a function of the probability of default, loss given default (i.e., the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information as described above. As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date; for financial guarantee contracts, the exposure includes the amount of guaranteed debt that has been drawn down as at the reporting date, together with any additional guaranteed amounts expected to be drawn down by the borrower in the future by default date determined based on historical trend, the Group’s understanding of the specific future financing needs of the debtors, and other relevant forward-looking information.

For financial assets, the ECL is estimated as the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate. For a lease receivable, the cash flows used for determining the ECLs is consistent with the cash flows used in measuring the lease receivable in accordance with IFRS 16.

The Group recognises an impairment gain or loss in the consolidated statement of income for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the investment revaluation reserve and does not reduce the carrying amount of the financial asset in the consolidated balance sheet.

2.12 Financial liabilities and equity

Classification as debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in the consolidated statement of income on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

Financial liabilities

Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognised in the consolidated statement of income to the extent that they are not part of a designated hedging relationship (see Hedge accounting policy). The net gain or loss recognised in the consolidated statement of income incorporates any interest paid on the financial liability and is included in the ‘Finance costs’ line item in the consolidated statement of income.

Financial liabilities measured subsequently at amortised cost

Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held-for-trading, or (iii) designated as at FVTPL, are measured subsequently at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

2. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

2.12 Financial liabilities and equity (continued)

Financial liabilities (continued)

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the consolidated statement of income.

2.13 Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the consolidated balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

2.14 Trade receivables

Trade receivables are amounts due from customers for properties leased or services performed in the ordinary course of business. Trade receivables are recognised initially in line with IFRS 15 and 16 and subsequently measured at amortised cost using the effective interest method, less loss allowance.

2.15 Cash and cash equivalents

Cash and cash equivalents include cash on hand, balances in current accounts, call accounts and term deposits with original maturity of three months or less with no withdrawal restrictions and which are subject to an insignificant risk of changes in value and cash pledged against guarantees.

2.16 Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is due within one year or less from the balance sheet date (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Contract advances include instalments received from customers for lease and services. These are subsequently released to the consolidated statement of income once the revenue recognition criteria are met (Note 2.21).

2.17 Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the consolidated statement of income over the period of the borrowings using the effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the consolidated statement of income.

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use. Other borrowing costs are expensed. Borrowings are classified as payable within 12 months unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

2.18 Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and risks specific to the obligation. Increases in provisions due to the passage of time are recognised as interest expense. Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

2.19 Employee benefits

(a) End of service benefits to non-UAE nationals

Provision is made for the end of service benefits due to employees in accordance with the UAE Labour Law for their periods of service up to the balance sheet date.

(b) Pension and social security policy within the UAE

The Group is a member of the pension scheme operated by the Federal Pension General and Social Security Authority. Contributions for eligible UAE National employees are made and charged to the consolidated statement of income, in accordance with the provisions of Federal Law No. 7 of 1999 relating to Pension and Social Security Law. The Group has no further payment obligations once the contributions have been paid.

2.20 Derivative financial instruments and hedging activities

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The Group designates certain derivatives as either hedges of the fair value of recognised assets or liabilities (fair value hedge) or hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge).

At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. Derivatives are only used by the Group for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedging criteria under IFRS Accounting Standards, they are classified as ‘held for trading’ for accounting purposes only. The fair values of various derivative instruments used for hedging are disclosed in Note 3.3. Movements in the hedging reserve is disclosed in the consolidated statement of changes in equity. The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability when expected to be settled within 12 months; otherwise, they are classified as non-current.

The Group uses interest rate swaps for hedging, which are commitments to exchange one set of cash flows for another. Swaps result in an economic exchange of interest rates (for example, fixed rate for floating rate). No exchange of principal takes place. The Group’s credit risk represents the potential cost to replace the interest rate swap contracts if counterparties fail to perform their obligation. This risk is monitored on an ongoing basis with reference to the current fair value, a proportion of the notional amount of the contracts and the liquidity of the market.

(a) Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in the consolidated statement of income within ‘Finance income/costs’.

Amounts accumulated in equity are recycled in the consolidated statement of income in the periods when the hedged item affects profit or loss (for instance when the forecast sale that is hedged takes place). The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognised in the consolidated statement of income within ‘Finance income/costs’. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset (for example inventory or fixed assets), the gains and losses previously recorded in equity are transferred from equity and included in the initial measurement of the cost of the asset. The deferred amounts are ultimately recognised in direct costs.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

2. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

2.20 Derivative financial instruments and hedging activities (continued)

(a) Cash flow hedges that qualify for hedge accounting (continued)

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss and deferred costs of hedging existing in equity at that time remains in equity until the forecast transaction occurs, resulting in the recognition of a non-financial asset (such as inventory) and is recognised when the forecast transaction is ultimately recognised in the consolidated statement of income. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the consolidated statement of income within ‘Finance income/costs’.

(b) Derivatives that do not qualify for hedge accounting

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any of these derivative instruments are recognised immediately in the consolidated statement of income within ‘Finance income/costs’.

2.21 Revenue recognition

The Group recognises revenue from contracts with customer based on five step model as outlined under IFRS 15:

Step 1 Identify the contract with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for each of those rights and obligations.
Step 2 Identify the performance obligations in the contract: A performance obligation in a contract is a promise to transfer a good or service to the customer.
Step 3 Determine the transaction price: Transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring the promised goods and services to a customer, excluding amounts collected on behalf of third parties.
Step 4 Allocate the transaction price to the performance obligations in the contract: For a contract that has more than one performance obligation, the Group will allocate the transaction price to each performance obligation in an amount that depicts the consideration to which the Group expects to be entitled in exchange for satisfying each performance obligation.
Step 5 Recognise revenue as and when the Group satisfies a performance obligation.

The Group recognises revenue over time if any one of the following criteria is met:

The customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; or
The Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or
The Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance obligation completed to date.

For performance obligations where none of the above conditions are met, revenue is recognised at the point in time at which the performance obligation is satisfied. When the Group satisfies a performance obligation by delivering the promised goods or services it creates a contract-based asset on the amount of consideration earned by the performance – unbilled receivables. Where the amount of consideration received from a customer exceeds the amount of revenue recognised this gives rise to a contract liability – advances from customers.

Revenue is measured at the fair value of consideration received or receivable, taking into account the contractually agreed terms of payment excluding taxes and duties. The Group assesses its revenue arrangements against specific criteria to determine if it is acting as principal or an agent and has concluded that it is acting as a principal in all of its revenue arrangements.

Revenue is recognised in the consolidated financial statements to the extent that it is probable that the economic benefits will flow to the Group and the revenue and costs, if and when applicable, can be measured reliably.

(a) Service charges

For investment property held primarily to earn operating lease income, the Group enters as a lessor into lease agreements that fall within the scope of IFRS 16. Certain lease agreements include certain services offered to tenants (i.e., customers) including common area services (such as security, cleaning, maintenance, utilities) as well as other support services (e.g., customer service and management). The consideration charged to tenants for these services includes fees charged based on a percentage of the operating lease income and reimbursement of certain expenses incurred. These services are specified in the lease agreements and separately invoiced.

The Group has determined that these services constitute distinct non-lease components (transferred separately from the right to use the underlying asset) and are within the scope of IFRS 15. The contracts of the Group specifically highlight stand-alone price for the services. In respect of the revenue component, these services represent a series of daily services that are individually satisfied over time because the tenants simultaneously receive and consume the benefits provided by the Group. The Group applies the time elapsed method to measure progress.

Income arising from cost recharged to tenants is recognised in the period in which the cost can be contractually recovered. The Group arranges for third parties to provide some of these services to its tenants. The Group concluded that it acts as a principal in relation to these services as it controls the specified services before transferring them to the customer. Therefore, the Group records revenue on a gross basis.

(b) Service income

Services revenue relates to outsourcing services provided to a government authority in relation to incorporation, government and other related services. The revenue is recognised at a point in time when the services are rendered.

2.22 Leases

(a) The Group as Lessee

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for the Group for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:

the contract involves the use of an identified asset – this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
the Group has the right to direct the use of the asset. The Group has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Group has the right to direct the use of the asset if either:
the Group has the right to operate the asset; or
the Group designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, where the contract is not separable into lease and nonlease component then the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

2. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

2.22 Leases (continued)

(a) The Group as Lessee (continued)

Lease payments included in the measurement of the lease liability comprise the following:

fixed payments, including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
amounts expected to be payable under a residual value guarantee; and
the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in the consolidated statement of income if the carrying amount of the right-of-use asset has been reduced to zero.

Determining the lease term

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).

Discounting of lease payments

The lease payments are discounted using the Group’s incremental borrowing rate (“IBR”). For calculation of IBR, the Group has taken appropriate benchmarks after adjusting for Group’s specific risk, term risk and underlying asset risk.

(b) The Group as a Lessor

The Group enters into lease arrangements as a lessor with respect to its investment property. Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract is classified as finance lease. All other leases are classified as operating leases.

Operating lease income

The Group earns revenue from acting as a lessor in operating leases which do not transfer substantially all the risks and rewards incidental to ownership of an investment property. In addition, the Group subleases investment property acquired under head leases with lease terms exceeding 12 months at commencement. Subleases are classified as a finance lease or an operating lease by reference to the right-of-use asset arising from the head lease, rather than by reference to the underlying investment property. All the Group’s subleases are classified as operating leases.

Operating lease income arising from operating leases on investment property is accounted for on a straight-line basis over the lease term and is included in revenue in the consolidated statement of income due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying value of the underlying asset and recognised as an expense over the lease term on the same basis as the lease income.

Lease incentives that are paid or payable to the lessee are deducted from lease payments. Accordingly, tenant lease incentives are recognised as a reduction of rental revenue on a straight-line basis over the term of the lease. The lease term is the non-cancellable period of the lease together with any further term for which the tenant has the option to continue the lease, where, at the inception of the lease, the Group is reasonably certain that the tenant will exercise that option. Amounts received from tenants to terminate leases or to compensate for dilapidations are recognised in the consolidated statement of income when the right to receive them arises.

Finance leases

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying assets. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

Lease payments are payments made by a lessee to a lessor relating to the right to use an underlying asset during the lease term, comprising the fixed payments, less any lease incentives; variable lease payments; the exercise price for a purchase option if the lessee is reasonably certain to exercise that option; and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. When the Group is an intermediate lessor, it accounts for its interest in the head lease and the sublease separately. It assesses the lease classification of a sub-lease with reference to the right of use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

Amounts from leases under finance lease are recognised as receivables at the amount of the Group’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. When a contract includes both lease and non-lease components, the Group applies IFRS 15 to allocate the consideration under the contract to each component.

2.23 Dividend distribution

Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s consolidated financial statements in the period in which the dividends are approved by the Company’s shareholder.

2.24 Segment reporting

Reportable segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the reportable segments, has been identified as the Group’s Chief Executive Officer that makes strategic decisions.

2.25 Interest income

Interest income is recognised in the consolidated statement of income on a time proportion basis using the effective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loan and receivable is recognised using the original effective interest rate.

2.26 Dividend income

Dividend income is recognised when the right to receive the dividend is established.

2.27 Income tax

The income tax expense or credit for the year is the tax payable on the current year’s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxable entity and tax authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

3. FINANCIAL RISK MANAGEMENT

3.1 Financial risk factors

The Group’s operations and borrowings expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating to fixed rates.

(a) Market risk

i) Foreign exchange risk

Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the functional currency of the particular Group entity. The Group has no significant exposure to foreign exchange risk as majority of its transactions are in the respective functional currencies of the Group companies.

ii) Cash flow and interest rate risk

The Group is exposed to interest rate risk on its interest-bearing assets and liabilities. Borrowings at variable rates expose the Group to cash flow interest rate risk.

Based on the various scenarios, the Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating to fixed rates. In the case of long-term borrowings from banks and financial institutions, the Group generally borrows funds at floating rates and swaps them into fixed rates. Under the interest rate swaps, the Group agrees with other parties to exchange, at specified intervals, the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional amounts.

At 31 December 2024, if interest rates on interest bearing financial assets had been 100 basis points (2023:100 basis points) higher/lower with all other variables held constant, post-tax profit for the year would have been AED 5,787,000 (2023: AED 9,653,000) higher/lower, mainly as a result of higher/lower interest income. In addition, at 31 December 2024 had the Group not entered in any interest rate swap agreements, if interest rates on borrowings had been 100 basis points (2023: 100 basis points) higher/lower with all other variables held constant, post-tax profit for the year would have been AED 52,133,000 (2023: AED 43,518,000) lower/higher, mainly as a result of higher/lower interest expense.

(b) Credit risk

The Group is exposed to credit risk in relation to its monetary assets, mainly trade receivables, lease receivables, derivatives, due from related parties, unbilled receivables and cash and bank balances.

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. When such an event happens, it is considered as a default event. The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Management has established policies under which each new customer is analysed for creditworthiness before Group’s standard payment and service delivery terms and conditions are offered.

The credit review can include customer reputation, customer segmentation, business plans, bank references and external credit worthiness databases when available. Derivative financial instruments and bank deposits are limited to high-credit-quality financial institutions. The Group has policies that limit the amount of credit exposure to any financial institution.

The credit quality of cash and bank balances at the balance sheet date can be assessed by reference to external credit ratings as illustrated in the table below:

	2024	2023
	AED’000	AED’000
A1 A2 A3 Aa3 Ba1 Baa1 Baa3	232,183 226,151 214,404 20 – 243,687 100,000	374,749 329,610 358,033 6 100,017 372,070 –
	1,016,445	1,534,485

The rest of the consolidated balance sheet item, ‘cash and bank balances’ is cash on hand. The Group’s exposure to credit risk arising from trade and unbilled receivables is disclosed in Note 9.

With respect to the credit risk arising from other financial assets of the Group, which comprise due from related parties, other receivables and deposits and financial assets at fair value through other comprehensive income, the Group’s exposure to credit risk arises from default of the counterparty, with maximum exposure equal to the carrying amount of these assets.

(c) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, and the availability of funding through an adequate amount of committed credit facilities. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility in funding by keeping committed credit lines available. Management reviews cash flows at regular intervals.

The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the consolidated balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant:

is not significant:
		Less than	Between 3 months and	Between	More than
	Notes	3 months AED’000	1 year AED’000	1 and 5 years AED’000	5 years AED’000
31 December 2024
Borrowings Trade payables and		58,778	155,814	5,737,883	–
other liabilities		–	1,062,792	425,235	719,062
Derivative financial
instruments	7	–	–	1,131	–
Due to relatedparties	10	90,604	–	101,873	–
		149,382	1,218,606	6,266,122	719,062

	Notes	Less than 3 months AED’000	Between 3 months and 1 year AED’000	Between 1 and 5 years AED’000	More than 5 years AED’000
31 December 2023
Borrowings Trade payables and		38,867	121,970	4,963,400	–
other liabilities		–	1,037,643	420,152	821,785
Derivative financial
instruments	7	–	–	3,000	–
Due to relatedparties	10	60,244	–	–	–
		99,111	1,159,613	5,386,552	821,785

Trade payables and other liabilities exclude operating lease advances and contract advances.

3.2 Capital risk management

The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholder and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Group consists of gross debt (borrowings of the Group disclosed in Note 15) and total equity of the Group.

The Group has a target to keep its gearing ratio below 65%, which is determined as a proportion of gross debt to total capital (equity plus gross debt).

The gearing ratios at 31 December 2024 and 2023 were as follows:

			2024	2023
		Notes	AED’000	AED’000
Total	borrowings	15	5,213,253	4,351,767
Total	equity		6,707,694	6,329,007
Total	capital		11,920,947	10,680,774
Debt	to total capital/gearingratio		43.73%	40.74%

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

3. FINANCIAL RISK MANAGEMENT (continued)

3.3 Fair value estimation

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The fair value of financial instruments traded in active markets is based on quoted market prices at the consolidated balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1.

The fair value of financial instruments that are not traded in an active market is based on valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, these instruments are included in level 2. All derivative financial instruments held by the Group have been categorised as level 2 as shown below, where the fair valuation of such instruments has been determined based on discounting future cash flows using observable discount factors. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties. There is no change in the valuation technique in comparison to prior years.

If one or more of the significant inputs is not based on observable market data, these instruments are included in level 3.

The following table presents the Group’s assets and liabilities that are measured at fair value at 31 December 2024 and 2023:

					Level 2
					AED’000
2024
Assets
Derivatives	designated	as cash	flow	hedges	165,440
Liabilities
Derivatives	designated	as cash	flow	hedges	1,131
					Level 2 AED’000
2023
Assets Derivatives	designated	as cash	flow	hedges	221,995
Liabilities
Derivatives	designated	as cash	flow	hedges	3,000

There were no transfers between the levels for recurring fair value measured during the year.

The carrying value of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. Other receivables and payables approximate their fair values.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.

(a) Provision for infrastructure costs

The Group recognises provisions for infrastructure based on assessments by third party specialists. This requires the use of significant estimates and judgements to determine the quantum of infrastructure required, the costs and time related to the construction, and the expected share of costs that may be recharged to the master developer. Infrastructure developed or under development by third parties or government authorities will be recharged to the master developer and subsequently to the Group based on its share of such costs. The significant components of infrastructure include construction of roadworks and power stations to service the master planned communities.

The provision for infrastructure costs are based on management’s best estimate of the future costs of construction of the related infrastructure facilities and the total costs to be actually incurred will be determined based on inputs from the relevant authorities and cost structures prevalent at each such future date. Hence, the Group’s actual cost of infrastructure may be materially different to the current estimates as advised by third party specialists.

(b) Calculation of loss allowance

The Group assesses the impairment of its financial assets based on the ECL model. Under the ECL model, the Group accounts for ECLs and changes in those ECLs at the end of each reporting period to reflect changes in credit risk since initial recognition of the financial assets. The Group measures the loss allowance at an amount equal to lifetime ECL for its financial instruments.

When measuring ECL, the Group uses reasonable and supportable forward looking information, which is based on assumptions for the future movement of different economic drivers and how these drivers will affect each other. Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral credit enhancements. Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions. There has been no change in the estimation techniques or significant assumptions in assessing the ECL during the current year.

(c) Useful lives of investment property

Management reviews the residual values and estimated useful lives of investment property at the end of each annual reporting period in accordance with IAS 40. Management determined that current year expectations do not differ from previous estimates based on its review.

(d) Valuation of investment property

The fair value of investment property is determined by an independent registered valuer or the internal valuation performed by the Group’s finance department.

The fair values have been determined by taking into consideration market comparable and/or the discounted cash flows where the Group has on-going lease arrangements and operations. In this regard, the Group’s current lease arrangements, which are entered into on an arm’s length basis and which are comparable to those for similar properties in the same location, have been taken into account.

In case where the Group does not have any on-going lease arrangements, fair values have been determined, where relevant, having regard to recent market transactions for similar properties in the same location as the Group’s investment property. These values are adjusted for differences in key attributes such as property size.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)

Key sources of estimation uncertainty (continued)

(d) Valuation of investment property (continued)

The key assumptions on which management has based its cash flow projections when determining the fair value of the assets are as follows:

Discount rate based on the Group’s weighted average cost of capital with a risk premium reflecting the relative risks in the markets in which the businesses operate.
Growth rate based on long-term rate of growth.

Management of the Group has reviewed the assumption and methodology used by the independent registered valuer and/or internal specialist and in their opinion these assumptions and methodology seems reasonable as at the reporting date considering the current economic and real estate outlook in UAE.

(e) Impairment of non-financial assets

Asset recoverability is an area involving management judgement, requiring assessment as to whether the carrying value of assets can be supported by the recoverable amount, which is the higher of the net present value of future cash flows derived from such assets using cash flow projections which have been discounted at an appropriate rate (“value in use”), and the assets’ fair value less costs to sell.

No impairment charge has been recognised against property and equipment, investment property and intangible assets.

Critical judgements in applying the Group’s accounting policies

The following are the critical judgements, apart from those involving estimations (which are presented separately below), that the management have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in the consolidated financial statements.

(a) Identification of a cash generating unit

A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The Group determines the recoverable amount of the cash-generating unit (‘CGU’) to which the asset belongs (the asset’s cash-generating unit). Where a reasonable and consistent basis of allocation can be identified, corporate assets (infrastructure costs) are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

In identifying whether cash inflows from an asset (or group of assets) are largely independent of the cash inflows from other assets (or groups of assets), the Group considers various factors including how management monitors the Group’s operations or how management makes decisions about continuing or disposing of the Group’s assets and operations.

Certain assets developed to enhance the ecosystem of master planned communities do not generate cash inflows that are largely independent and generate incidental revenue only. Because these assets do not generate largely independent cash inflows, the recoverable amount of these assets cannot be determined. As a consequence, if there is an indication that these assets may be impaired, recoverable amount is determined for the cash-generating unit or group of cash-generating units to which these assets belong, and is compared with the carrying amount of this cash-generating unit or group of cashgenerating units.

(b) Income taxes

The Group’s current tax provision of AED 38,222,000 (2023: AED Nil) relates to management’s assessment of tax liabilities on open positions, based on current interpretations of CT Law and applicable guidance.

5. PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT
			Building
			interior
			improvements,				Capital
			furniture	Computer	Motor	Other	work-in-
		Buildings	and fixtures	hardware	vehicles	assets	progress	Total
	Notes	AED’000	AED’000	AED’000	AED’000	AED’000	AED’000	AED’000
2024
Cost
At 1 January 2024		137,840	128,315	46,181	1,364	19,077	154	332,931
Additions		–	4,425	534	–	1,364	–	6,323
Transfers from/(to) investment property	6	–	395	–	–	–	(154)	241
Disposals		–	–	(20)	–	–	–	(20)
Reclassifications		(2,783)	2,783	–	–	–	–	–
Write-off		–	–	–	–	(1,167)	–	(1,167)
At 31 December 2024		135,057	135,918	46,695	1,364	19,274	–	338,308
Accumulated depreciation
At 1 January 2024		55,611	123,195	44,775	986	14,905	–	239,472
Depreciation charge		3,496	2,056	865	378	2,153	–	8,948
Transfers from investment property	6	–	182	–	–	–	–	182
Disposals		–	–	(20)	–	–	–	(20)
Write-off		–	–	–	–	(1,167)	–	(1,167)
At 31 December 2024		59,107	125,433	45,620	1,364	15,891	–	247,415
Net book value at 31 December 2024		75,950	10,485	1,075	–	3,383	–	90,893

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

5. PROPERTY AND EQUIPMENT (continued)

5. PROPERTY AND EQUIPMENT(continued)
			Building
			interior
			improvements,				Capital
			furniture	Computer	Motor	Other	work-in-
		Buildings	and fixtures	hardware	vehicles	assets	progress	Total
	Notes	AED’000	AED’000	AED’000	AED’000	AED’000	AED’000	AED’000
2023
Cost
At 1 January 2023		137,840	124,873	45,415	1,364	14,137	390	324,019
Additions		–	1,778	839	–	4,940	154	7,711
Transfers from/(to) investment property	6	–	1,664	–	–	–	(390)	1,274
Transfers to related parties		–	–	(18)	–	–	–	(18)
Disposals		–	–	(55)	–	–	–	(55)
At 31 December 2023		137,840	128,315	46,181	1,364	19,077	154	332,931
Accumulated depreciation
At 1 January 2023		52,115	118,611	43,997	456	11,845	–	227,024
Depreciation charge		3,496	2,920	838	530	3,060	–	10,844
Transfers from investment property	6	–	1,664	–	–	–	–	1,664
Transfers to related parties		–	–	(5)	–	–	–	(5)
Disposals		–	–	(55)	–	–	–	(55)
At 31 December 2023		55,611	123,195	44,775	986	14,905	–	239,472
Net book value at 31 December 2023		82,229	5,120	1,406	378	4,172	154	93,459

6. INVESTMENT PROPERTY

					Capital
			Buildings and		work-in-
		Land	improvements	Infrastructure	progress	Total
	Notes	AED’000	AED’000	AED’000	AED’000	AED’000
2024
Cost
At 1 January 2024		3,687,468	10,521,991	3,244,663	3,599,897	21,054,019
Additions		414,162	1,353,806	–	619,901	2,387,869
Transfers to related parties	10	–	–	–	(23,335)	(23,335)
Transfers (to)/from property and equipment	5	–	(395)	–	154	(241)
Transfers within other captions of investmentproperty		–	60,188	54,718	(114,906)	–
At 31 December 2024		4,101,630	11,935,590	3,299,381	4,081,711	23,418,312
Accumulated depreciation and impairment
At 1 January 2024		1,946,344	4,614,437	1,102,968	1,525,728	9,189,477
Depreciation charge	22	–	357,229	52,191	–	409,420
Transfers from investmentproperty	5	–	(182)	–	–	(182)
At 31 December 2024		1,946,344	4,971,484	1,155,159	1,525,728	9,598,715
Net book value at 31 December 2024		2,155,286	6,964,106	2,144,222	2,555,983	13,819,597

During the year, the Group acquired investment property from fellow subsidiaries for a total consideration of AED 958,231,000, recorded in accordance with the Group’s accounting policy (Note 10).

The depreciation charge for the year is recognised under general and administrative expenses amounting to AED 8,948,000 (2023: AED 10,844,000).

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

6. INVESTMENT PROPERTY (continued)

6. INVESTMENT PROPERTY(continued)
					Capital
			Buildings and		work-in-
		Land	improvements	Infrastructure	progress	Total
	Notes	AED’000	AED’000	AED’000	AED’000	AED’000
2023
Cost
At 1 January 2023		3,687,468	10,355,799	3,244,663	3,405,743	20,693,673
Additions		–	–	–	382,041	382,041
Transfers to related parties	10	–	–	–	(20,421)	(20,421)
Transfers (to)/from property and equipment	5	–	(1,664)	–	390	(1,274)
Transfers within other captions of investmentproperty		–	167,856	–	(167,856)	–
At 31 December 2023		3,687,468	10,521,991	3,244,663	3,599,897	21,054,019
Accumulated depreciation and impairment
At 1 January 2023		1,946,344	4,303,841	1,043,833	1,525,728	8,819,746
Depreciation charge	22	–	312,260	59,135	–	371,395
Transfers from investmentproperty	5	–	(1,664)	–	–	(1,664)
At 31 December 2023		1,946,344	4,614,437	1,102,968	1,525,728	9,189,477
Net book value at 31 December 2023		1,741,124	5,907,554	2,141,695	2,074,169	11,864,542

During the year, the Group acquired investment property from fellow subsidiaries for a total consideration of AED 958,231,000, recorded in accordance with the Group’s accounting policy (Note 10).

The Group repossessed certain capital work-in-progress upon court settlements, which were recorded at fair value in accordance with the Group’s accounting policy. This transaction resulted in a gain of AED 65,670,000, which is included in other operating income Note 23(a).

The capital work-in-progress encompasses buildings, land, and infrastructure currently under construction, intended for future use as investment properties.

The depreciation charge for the year is recognised under direct costs, amounting to AED 409,420,000 (AED 371,395,000).

As at 31 December 2024 and 2023, no investment property have been pledged as security against loan facilities obtained by the Group (Note 15).

The following amounts have been recognised in the consolidated statement of income in respect of investment property:

respect of investment property:
	Notes	2024 AED’000	2023 AED’000
Operating lease income Direct costs (including depreciation) arising from investment property that generated operating lease income	21	2,106,784 757,263	1,933,534 668,423

Valuation techniques underlying management’s estimation of fair value

The ‘Income capitalisation and residual price methods’ have been applied for the fair valuation of income generating properties.

The sales comparison and income capitalisation methods have been applied for the valuation of land held by the Group.

The hypothetical purchaser’s operating costs associated with ownership of the property (including current and future anticipated void periods) are deducted to arrive at the term and reversionary net operating income streams (“NOI”). The NOI streams are then capitalised over the term of the lease agreement(s) in place or in perpetuity respectively using a market related yield. The significant unobservable inputs used in the fair value measurement categorised within level 3 of the fair value hierarchy using income capitalisation method are stabilised average monthly market rent and capitalisation rate.

‘Sales comparison method’ involves determination of the value of the investment property with reference to comparable market transactions for properties in close proximity. These values are adjusted for differences in key attributes such as size, gross floor area and location. The valuation method adopted for these properties fall under level 3. The significant unobservable input used in the fair value measurement categorised within level 3 of the fair value hierarchy using sales comparison method is sales rate per Gross Floor Area (“GFA”).

‘Residual price method’ involves determination of the estimated selling price of a project development on the respective plots of land; reduced by the estimated construction and other costs to completion that would be incurred by a market participant and an estimated profit margin that a market participant would require to hold and develop the plots to completion. The significant inputs into this valuation approach are the estimated selling prices, costs to complete and developers’ margins. The valuation method adopted for these land plots fall under level 3.

There were no changes to the valuation techniques during the years presented.

For all investment properties, their current use approximately equates to the highest and best use.

As at 31 December 2024, the estimated fair value of the Group’s investment property is AED 27,874,364,000 (2023: AED 22,934,827,000).

‘Income capitalisation method’ is a growth implicit valuation technique. The term (current/ passing) income is based on the gross income generated from the contracted lease agreement(s) in place (including any anticipated changes at future rent reviews) and the reversionary income stream is based on the estimated market rent of the property at the valuation date.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

7. DERIVATIVE FINANCIAL INSTRUMENTS

	Notional
At 31 December 2024 Designated as cash flow hedges Interest rate swapcontracts	amount AED’000 3,531,268	Assets AED’000 165,440	Liabilities AED’000 1,131
At 31 December 2023 Designated as cash flow hedges Interest rate swapcontracts	3,990,747	221,995	3,000

The Group uses derivatives only for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedging criteria under IFRS Accounting Standards, they are classified as ‘held for trading’ for accounting purposes as required by IFRS Accounting Standards. In particular, the Group uses interest rate swaps to minimise the effect of interest rate fluctuations on its borrowings. The contracts entered into by the Group are principally denominated in AED. The fair values of these contracts are recorded in the consolidated balance sheet and is determined by reference to valuations by reputable external financial institutions.

Interest rate swaps are commitments to exchange one set of cash flows for another. The swaps result in an economic exchange of interest rates, no exchange of principal takes place. These swap transactions entitle the Group to receive or pay amounts derived from interest rate differentials between an agreed fixed interest rate and the applicable floating rate prevailing at the beginning of each interest period.

At 31 December 2024, the fixed interest rates vary from 1.52% to 4.37% per annum (2023: 1.52% to 4.37% per annum). The floating rates are linked to Emirates Interbank Offered Rate (“EIBOR”).

Changes in the fair market values of interest rate swaps that are considered effective and designated as cash flow hedges are recognised in the hedge reserve in other comprehensive income. Amounts are reclassified to the consolidated statement of income when the associated hedged transaction affects the consolidated statement of income. There was no ineffectiveness to be recorded from the cash flow hedges. The change in fair values of interest rate swaps designated as cash flow hedges for the year ended 31 December 2024 amounted to a loss of AED 54,686,000 (2023: loss of AED 93,707,000). The related tax on the fair value loss on cash flow hedge for the year is AED 4,922,000 (2023: AED Nil), which has been set off against the fair value loss disclosed in the other comprehensive income.

In 2023, certain derivatives designated as hedging instruments were settled, and therefore hedge accounting is discontinued prospectively on these items. The amount of AED 23,945,000 that had been accumulated in the hedge reserve has been recycled through the consolidated statement of income.

As at 31 December 2024, derivative financial instruments include interest rate swaps entered into with a related party financial institution, with a fair value of AED 64,689,000 (2023: AED 85,308,000).

8. OTHER RECEIVABLES

8. OTHER RECEIVABLES
	2024 AED’000	2023 AED’000
Advances to contractors and suppliers Finance lease receivables Prepayments Other receivables	53,035 15,468 36,711 12,947	71,778 18,336 19,902 29,002
Less: non-current	118,161 (11,347)	139,018 (14,215)
Current	106,814	124,803

Finance lease receivables relate to property leases with a lease term of up to 50 years. The lease term generally provides an option to lessees to buy the properties after initial period (usually 10 years). The leases carry interest rate linked to EIBOR. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable.

The fair values of trade and unbilled receivables approximate their carrying amounts.

A summary of the gross repayment schedule for the finance lease receivable is presented below:

Unbilled receivables arise on revenue recognition based on straight lining which is mainly driven by rent free periods and rent escalation as per the contracts.

A summary of the gross repayment schedule for the finance lease receivable is presented below:	The fair values of trade and unbilled receivables approximate their carrying amounts. Unbilled receivables arise on revenue recognition based on straight lining which is mainly
2024 AED’000 2023 AED’000 Within one year 4,121 4,121 After oneyear but not more than fiveyears 11,541 14,475 15,662 18,596 Unearned future finance income on finance leases (194) (260) Net investment in finance leases 15,468 18,336 The fair value of long-term finance receivables has been estimated by discounting the gross value of finance lease receivables using a borrowing rate of 6% (2023: 6%). 9. TRADE AND UNBILLED RECEIVABLES 2024 AED’000 2023 AED’000 Trade receivables 172,516 193,814 Less: loss allowance (77,939) (91,655) 94,577 102,159 Less: non-current – – Current 94,577 102,159 Unbilled receivables – operating leases 963,331 958,987 Less: loss allowance (55,025) (156,930) 908,306 802,057 Less: non-current (821,126) (802,057) Current 87,180 – Trade and unbilled receivables Current 181,757 102,159 Non-current 821,126 802,057 1,002,883 904,216	driven by rent free periods and rent escalation as per the contracts. The Group has a broad base of customers with no concentration of credit risk within trade receivables at 31 December 2024 and 2023. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable: 2024 AED’000 2023 AED’000
	Trade receivables and unbilled receivables
	Not past due 979,404 958,987 Up to 3 months 66,591 59,244 3 to 6 months 7,449 9,877 Over 6 months 82,403 124,693
	1,135,847 1,152,801
	2024 AED’000 2023 AED’000
	Loss allowance against trade receivables and unbilled receivables
	Not past due 55,351 156,930 Up to 3 months 5,464 8,129 3 to 6 months 6,333 7,392 Over 6 months 65,816 76,134
	132,964 248,585
	The provision against not past due receivables reflects loss allowance against specific customers considered having a higher probability of default. The creation and release of the loss allowance on receivables are recognised in the consolidated statement of income under general and administrative expenses. Amounts charged to the allowance account are written off when there is no exectation of recoverin additional cash The Grou’s trade and

The provision against not past due receivables reflects loss allowance against specific customers considered having a higher probability of default. The creation and release of the loss allowance on receivables are recognised in the consolidated statement of income under general and administrative expenses. Amounts charged to the allowance account are written off when there is no expectation of recovering additional cash. The Group’s trade and unbilled receivables are denominated in AED.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

9. TRADE AND UNBILLED RECEIVABLES (continued)

The movement in the Group’s loss allowance on trade receivables is as follows:

At 1 January Provision for/(reversal of) loss allowance – net	2024 AED’000 91,655 7,074	2023 AED’000 119,783 (28,128)
Write off At 31 December	(20,790) 77,939	– 91,655

The movement in the Group’s loss allowance on unbilled receivables is as follows:

	2024	2023
	AED’000	AED’000
At 1 January	156,930	166,765
(Reversal of)/provision for loss allowance – net	(4,598)	1,747
Write off	(97,307)	(11,582)
At 31 December	55,025	156,930

There has been no change in the estimation techniques or significant assumptions made in assessing the ECL during the current year.

10. BALANCES AND TRANSACTIONS WITH RELATED PARTIES

Related parties comprise major shareholders, ultimate parent company, intermediate parent company, parent company and key management personnel and businesses which are controlled directly by the major shareholders or key management personnel. Related parties also include entities over which the ultimate parent company has control or significant influence. The term of the related party transactions are approved by the management.

(a) Due from related parties

(a) Due from related parties
	2024	2023
	AED’000	AED’000
Intermediate Parent Company Parent Company Other subsidiaries of the Parent Company	– 1,413 26,370	49 1,691 14,774
Other relatedparties	27,207	18,911
Less: non-current	54,990 –	35,425 –
Current	54,990	35,425

The amount due from related parties as at 31 December 2024 and 2023 are unsecured in nature and bear no interest. The maximum exposure to credit risk at the reporting date is the fair value of each of the amount receivable from related parties.

The fair values of due from related parties approximate their carrying amounts and are fully performing at 31 December 2024 and 2023.

Due from and due to related party balances are offset and presented on a net basis in the consolidated balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to either settle on a net basis or realise the assets and liabilities simultaneously.

(b) Due to related parties 2024 AED’000 2023 AED’000 Ultimate Parent Company 16,042 9,111 Other subsidiaries of the Parent Company 130,381 11,520 Other relatedparties 36,947 39,613 183,370 60,244 Less: non-current (92,766) – Current 90,604 60,244	(c) Related party transactions Break up of other significant tr business is as follows:	(c) Related party transactions Break up of other significant tr business is as follows:
		2024 AED’000 2023 AED’000
	Transactions between relate Dividends declared to Parent Acquisition of investment pro Transfer of investment proper

Break up of other significant transactions with related parties in the normal course of the business is as follows:

business is as follows:
	2024	2023
	AED’000	AED’000
Transactions between related parties: Dividends declared to Parent Company Acquisition of investment property from fellow subsidiaries Transfer of investment property to fellow subsidiaries Services provided to related parties included in revenue: Operating lease income from fellow subsidiaries and other related parties Services income from fellow subsidiaries and other related parties Services provided by related parties included in expenses: Direct costs – operation and maintenance costs – Fellow subsidiary – Entities under common control – Other related parties General and administrative expenses – cost recharged – Ultimate Parent Company – Fellow subsidiaries – Other related parties	700,000 958,231 23,335 49,462 6,687 1,402 109,984 63,115 1,672 49,422 2,884	525,000 – 20,421 29,303 5,291 2,615 99,488 52,160 1,752 47,803 3,795
Transactions with related party institution:
Finance income	21,895	–
Finance costs and other bank charges	76,718	–

The payables to related parties arise mainly from purchase transactions and are non-interest bearing.

As at 31 December 2024, the amount due to related parties includes AED 113,141,000, which pertains to obligations arising from the acquisition of investment property from fellow subsidiaries (Note 6). Of this amount, AED 92,766,000 is classified as a non-current liability, representing the net present value of obligations with a repayment term of three years. This classification reflects the long-term nature of the liability, consistent with the terms of the underlying agreements, as repayment extends beyond one year.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

As at 31 December 2024, cash and bank balances include AED 222,192,000 (2023: AED 329,610,000) held with a related party financial institution.

10. BALANCES AND TRANSACTIONS WITH RELATED PARTIES (continued)

(d) Remuneration of key management personnel

The compensation to key management personnel for employee services is shown below:

12. SHARE CAPITAL

	2024 AED’000	2023 AED’000
Salaries and other short-term employee benefits End of service, termination and other post-employment Board of Directors’ remuneration	22,205 1,060 7,990	18,170 732 1,926
	31,255	20,828

The total authorised and issued share capital of the Company comprises 5,000,000,000 shares (2023: 5,000,000,000 shares) of AED 0.10 each. All shares were fully paid-up.

13. STATUTORY RESERVE

In accordance with the UAE Federal Decree Law No. (32) of 2021 and Articles of Association, 10% of the profit for the year of the public joint stock company and 5% of the profit for the year of each UAE limited liability registered company are transferred to a statutory reserve, which is not distributable. Transfers to this reserve are required to be made until such time as it equals at least 50% of the paid-up share capital of the respective companies. Accordingly, for the year ending 31 December 2024, transfers to the statutory reserve are expected to be made by the individual entities within the Group at the end of the year in line with the aforementioned policy.

Board of Directors’ remuneration for the year ended 31 December 2024 is recorded in Accrued expenses under ‘Trade and other payables’ in the consolidated financial statements and will be approved in the next Annual General Meeting.

11. CASH AND BANK BALANCES

11. CASH AND BANK BALANCES
	2024	2023
	AED’000	AED’000
Cash on hand Cash at banks – Current account	594 437,767	698 569,184
– Fixed deposits	578,678 1,017,039	965,301 1,535,183

As at 31 December 2024 and 2023, statutory reserve of the Company amounted to AED 250,000,000. The remaining amount pertains to the subsidiaries of the Group.

14. TRADE AND OTHER PAYABLES

2024	2023
AED’000	AED’000

Cash at banks – Current account – Fixed deposits	437,767 578,678 1,017,039	569,184 965,301 1,535,183	AED 250,000,000. The remaining amount pertains to the subsidi 14. TRADE AND OTHER PAYABLES	aries of the Group. 2024 AED’000 2023 AED’000
			Trade payables	89,494 72,489
Cash and cash equivalents include the following for the purposes of the consolidated			Accrued expenses	216,218 222,589
statement of cashflows:	2024	2023	Otherpayables	27,346 56,749
	AED’000	AED’000		333,058 351,827
Cash and bank balances	1,017,039	1,535,183	Less: non-current	(2,728) (3,304)
Fixed deposits with maturitiesgreater than 3 months	(378,678)	(865,301)	Current	330,330 348,523
	638,361	669,882

Bank accounts are maintained with locally incorporated banks and fixed deposits yield interest rates ranging from 3.85% to 5.05% per annum (2023: 5.09% to 5.75%).

15. BORROWINGS

15. BORROWINGS
	2024	2023
	AED’000	AED’000
Bank borrowings	5,250,000	4,400,000
Unamortised transaction costs	(36,747)	(48,233)
Carrying amount	5,213,253	4,351,767
Less: non-current	(5,213,253)	(4,351,767)
Current	–	–

On 14 June 2023, the Group refinanced its existing bank facilities through a facility aggregating to AED 7,600,000,000 with multiple tranches from consortium of banks, in exchange of settlement of existing obligation. As at 31 December 2024, the unamortised transaction costs amounted to AED 36,747,000 (2023: AED 48,233,000).

The purpose of the loan facility is to repay existing facilities and for general corporate purposes of the Group. The facility is repayable in a single bullet payment in 2028.

As at 31 December 2024, the Group has undrawn floating rate borrowing amounting to AED 2,350,000,000 from the above facility (2023: AED 3,200,000,000).

The Group has sufficient headroom to enable it to conform to covenants on its existing borrowings and sufficient working capital and undrawn financing facilities to service its operating activities and ongoing investments as at 31 December 2024 and 2023.

Below are major financial covenants as required by the terms of the facility:

i) Leverage for each period not to exceed certain ratios as specified in the facility agreement. ii) Debt Service Cover Ratio not to be less than 1.20:1.

iii) Minimum Net Worth in respect of any relevant period not to be less than AED 3,673,000,000 (or its equivalent in any other currency).

The Group has complied with all covenants in line with the borrowing facility agreements at each reporting period. The Group has not had any defaults of principal, interest or redemption amounts during the periods on its borrowed funds. Interest rates on the above bank

borrowings ranged from 5.59% to 6.35% (2023: ranged from 6.12% to 6.35%) per annum.

Total borrowings of AED 5,250,000,000 (2023: AED 4,400,000,000) are subject to re-pricing within three months of the consolidated balance sheet date. The Group’s borrowings are denominated in AED.

denominated in AED.	denominated in AED.
As at 31 December 2024, borrowings include AED 2,085,301,000 (2023: AED		1,740,707,000)
obtained from a related party financial institution.
The maturity profile of the borrowings is as follows:	2024		2023
	AED’000		AED’000
Within one year After oneyear but not more than fiveyears	– 5,250,000		– 4,400,000
	5,250,000		4,400,000

16. ADVANCES FROM CUSTOMERS

16. ADVANCES FROM CUSTOMERS
	2024	2023
	AED’000	AED’000
Operating lease advances	1,269,066	1,187,616
Contract advances	44,154	42,144
Refundable deposits	262,760	230,378
Less: non-current Current	1,575,980 (606,757) 969,223	1,460,138 (623,533) 836,605

Operating lease advances and contract advances represents amounts collected from customers in advance which are subsequently released to the consolidated statement of income once the revenue recognition criteria are met.

The movement of contract advances is as follows:

The movement of contract advances is as follows:
	2024	2023
	AED’000	AED’000
At 1 January Amount billed Revenue recognised At 31 December	42,144 157,421 (155,411) 44,154	35,809 146,668 (140,333) 42,144

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

19. PROVISIONS FOR OTHER LIABILITIES AND CHARGES

17. PROJECT LIABILITIES

17. PROJECT LIABILITIES	19. PROVISIONS FOR OTHER LIABILITIES AND CHARGES
2024 AED’000 2023 AED’000 Project payables 1,133,821 1,158,574 Retentionspayable 126,688 131,404 1,260,509 1,289,978 Less: non-current (786,913) (829,445) Current 473,596 460,533	2024 AED’000 2023 AED’000
	Provision for infrastructure cost 902,807 902,807 Provision for legal claims 27,856 21,585
	930,663 924,392 Less: non-current (902,807) (902,807)
	Current 27,856 21,585

Project payables include amounts contracted with a government authority to cover the Group’s share of costs for roadworks serving the Group’s developments. The present value of these payables is AED 876,502,000 (2023: AED 923,675,000). These costs are settled through agreed annual fixed installments and are recognized at the present value of the expected cash outflows, discounted at a rate of 6.49% (2023: 6.49%).

20. DIVIDENDS

At the Annual General Meeting held on 14 March 2023, shareholders approved the distribution of dividends amounting to AED 200,000,000 (AED 0.04 per share).

On 1 August 2023, the Board of Directors approved the distribution of interim dividends of AED 400,000,000 (AED 0.08 per share).

The fair value of non-current retentions payable is determined by discounting the gross value of these liabilities using a risk-free rate adjusted by a liability-specific discount rate of 5.39% (2023: 5.39%). This valuation is classified as Level 3 within the fair value hierarchy due to the reliance on unobservable inputs.

At the Annual General Meeting held on 4 March 2024, shareholders approved the distribution of final cash dividends of AED 400,000,000 (AED 0.08 per share).

On 1 August 2024, the Board of Directors approved the distribution of interim cash dividends of AED 400,000,000 (AED 0.08 per share).

18. EMPLOYEES’ END OF SERVICE BENEFITS

18. EMPLOYEES’ END OF SERVICE BENEFITS
	2024	2023
	AED’000	AED’000
At 1 January Charge for the year Payments	43,912 4,101 (1,280)	43,909 4,177 (4,174)
At 31 December	46,733	43,912

On 5 February 2025, the Board of Directors has recommended cash dividend of AED 400,000,000 (AED 0.08 per share), which is subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Company.

24. GENERAL AND ADMINISTRATIVE EXPENSES

21. REVENUE

21. REVENUE	24. GENERAL AND ADMINISTRATIVE EXPENSES
Notes 2024 AED’000 2023 AED’000 Operating lease income 6 2,106,784 1,933,534 Service income 295,218 239,663 2,402,002 2,173,197 The payments for service income are received in advance and have no significant financing component. The aggregate amount of sale price allocated to performance obligations that are unsatisfied/partially satisfied as at 31 December 2024 amounted to AED 44,154,000 (2023: AED 42,144,000). The Group expects to recognise revenue from these unsatisfied	Notes 2024 AED’000 2023 AED’000
	Payroll and related costs 25 82,531 71,279 Management fees and consultancy 47,303 46,723 Depreciation and amortisation 19,902 23,111 Information technology 17,197 20,458 Professional memberships 11,197 3,877 Administration fees 6,098 6,815 Communication 4,054 3,825 Provision for/(reversal of) loss allowance on receivables – net 9 2,476 (26,381) Others 14,184 17,290
	204,942 166,997

The aggregate amount of sale price allocated to performance obligations that are unsatisfied/partially satisfied as at 31 December 2024 amounted to AED 44,154,000 (2023: AED 42,144,000). The Group expects to recognise revenue from these unsatisfied performance obligations over a period of 2 years.

25. PAYROLL AND RELATED COSTS

22. DIRECT COSTS

The aggregate amount of sale price allocated to performance obligations that are unsatisfied/partially satisfied as at 31 December 2024 amounted to AED 44,154,000 (2023: AED 42,144,000). The Group expects to recognise revenue from these unsatisfied performance obligations over a period of 2 years. 22 DIRECT COSTS	receivables – net 9 2,476 (26,381) Others 14,184 17,290 204,942 166,997 25. PAYROLL AND RELATED COSTS
. Notes 2024 AED’000 2023 AED’000 Depreciation 6 409,420 371,395 Operation and maintenance costs 390,624 338,015 Payroll and related costs 25 49,496 50,972 849,540 760,382 23. OTHER OPERATING INCOME Notes 2024 AED’000 2023 AED’000 Lease termination and other penalties 23(a) 85,676 15,039 Cost recovery 30,188 27,135 Liabilities written back 16,587 12,589 Others 5,052 1,292 137,503 56,055	2024 AED’000 2023 AED’000
	Salaries and allowances 130,412 121,178 End of service benefits andpension 7,009 6,908
	137,421 128,086
	Payroll and related costs are split as follows: Notes 2024 AED’000 2023 AED’000
	Direct costs 22 49,496 50,972 General and administrative expenses 24 82,531 71,279 Marketingand sellingexpenses 26 5,394 5,835
	137,421 128,086

(a) A gain of AED 65,670,000 (2023: AED Nil) was recognised from the repossession of capital work-in-progress (Note 6).

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

26. MARKETING AND SELLING EXPENSES

Promotions Advertising Payroll and related costs	Notes 25	2024 AED’000 39,514 9,570 5,394 54,478	2023 AED’000 31,546 5,442 5,835 42,823

Promotions include social contributions amounting to AED 199,000 (2023: AED 358,000).

27. FINANCE COSTS – NET

27. FINANCE COSTS – NET
	2024	2023
	AED’000	AED’000
Interest (expense)/income on: Bank borrowings Derivative financial instruments Amortisation of transaction costs Unwinding of discount on non-current liabilities	(297,435) 116,862 (10,839) (32,044)	(292,953) 127,772 (64,323) (32,863)
Other finance costs	(203)	–
	(223,659)	(262,367)
Interest earned on: Bank fixed deposits Islamic deposits Current accounts	22,438 9,811 32,441	27,090 14,888 14,367
Gains on derivatives	–	23,945
Other finance income	1,290	1,302
	65,980	81,592
	(157,679)	(180,775)

28. CURRENT INCOME TAX AND DEFERRED INCOME TAX

On 9 December 2022, the United Arab Emirates (UAE) Ministry of Finance (“MoF”) released Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses, Corporate Tax Law (“CT Law”) to enact a new CT regime in the UAE. The new CT regime has become effective for accounting periods beginning on or after 1 June 2023. As the Group’s accounting year ends on 31 December, the first tax period will be the period from 1 January 2024 to 31 December 2024, with the respective tax return to be filed on or before 30 September 2025.

The taxable income of the entities that are in scope for UAE CT purposes will be subject to the rate of 9% corporate tax for mainland entities and where conditions are met, 0% for freezones.

The tax charge for the year ended 31 December 2024 is AED 38,222,000 (2023: AED Nil), representing an Effective Tax Rate (“ETR”) of 3.02% (2023: Nil). The deviation from the UAE statutory tax rate (i.e. 9%) is primarily driven by subsidiaries operating in free zones that are subject to 0%.

The component of income tax expense in the consolidated statement of income follows:

	2024	2023
	AED’000	AED’000
Current income tax expense	(38,222)	–
Following is the reconciliation of current income tax expense and accounting profit:
	2024	2023
	AED’000	AED’000
Accounting profit for theperiod before tax	1,266,673 1,078,275
Income tax at UAE statutory rate of 9%	114,001	–
Tax effect of amounts which are taxable at 0%:
Income from qualifying free zone entities	(75,745)	–
Adjustments for income upto AED 375,000	(34)
Total corporate income tax charge for theyear	38,222	–
Effective tax rate	3.02%	–

The deferred tax assets comprise of the following temporary difference:

	2024	2023
	AED’000	AED’000
Fair value loss on cash flow hedges Deferred tax assets	(54,686) 4,922	– –

29. EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing consolidated profit for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.

As there are no dilutive instruments outstanding, basic and diluted earnings per share are identical. The calculation of basic and diluted earnings per share attributable to the owners of the Company is based on the following data:

of the Company is based on the following data:
	2024	2023
	AED’000	AED’000
Earnings
Earnings for the purpose of basic and diluted earnings
per share (consolidated profit for the year attributable
to owners of the Company) rounded to the nearest
AED’000	1,228,451	1,078,275
Weighted average number of shares
Weighted average number of ordinary shares for the
purpose of basic and diluted earningsper share	5,000,000,000	5,000,000,000
Basic and diluted earnings per share attributable to
owners of the Companyrounded to the nearest Fil	0.25	0.22

30. CASH GENERATED FROM OPERATIONS

30. CASH GENERATED FROM OPERATIONS
		2024	2023
	Notes	AED’000	AED’000
Profit for the year Adjustments for: Depreciation and amortisation		1,228,451 429,322	1,078,275 394,506
Provision for/(reversal of) loss allowance on
receivables – net	9	2,476	(26,381)
Provisions for end of service benefits and other liabilities and charges Lease terminations Liabilities written back	9 23 23	10,294 (65,670) (16,587)	5,223 – (12,589)
Finance income	27	(65,980)	(81,592)
Finance costs	27	223,659	262,367
Income tax expense	28	38,222	–
		1,784,187	1,619,809
Changes in operating assets and liabilities: Trade and other receivables, before provision and write-off and excluding advances to contractors Trade payables and other payables excluding project liabilities and related provisions Due from related parties		(141,469) 146,326 3,770	(9,552) 3,014 15,135
Due to relatedparties		30,360	6,553
Cashgenerated from operations		1,823,174	1,634,959

As at 31 December 2024, current tax liabilities amounted to AED 38,222,000 (2023: AED Nil).

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

31. FINANCIAL INSTRUMENTS BY CATEGORY

The accounting policies for financial instruments have been applied to the following line items:

31. FINANCIAL INSTRUMENTS BY CATEGORY The accounting policies for financial instruments have been applied to the following line items:
Notes Financial assets at amortised cost AED’000 Derivatives used for hedging AED’000 Total AED’000 Assets 31 December 2024 Derivative financial instruments 7 – 165,440 165,440 Trade and other receivables 1,025,824 – 1,025,824 Due from related parties 10 54,990 – 54,990 Cash and bank balances 11 1,017,039 – 1,017,039 2,097,853 165,440 2,263,293 31 December 2023 Derivative financial instruments 7 – 221,995 221,995 Trade and other receivables 942,070 – 942,070 Due from related parties 10 35,425 – 35,425 Cash and bank balances 11 1,535,183 – 1,535,183 2,512,678 221,995 2,734,673	Notes Derivatives used for hedging AED’000 Other financial liabilities AED’000 Total AED’000
	Liabilities 31 December 2024 Trade payables and other liabilities – 1,856,327 1,856,327 Derivative financial instruments 7 1,131 – 1,131 Due to related parties 10 – 183,370 183,370 Borrowings 15 – 5,213,253 5,213,253
	1,131 7,252,950 7,254,081
	31 December 2023 Trade payables and other liabilities – 1,872,183 1,872,183 Derivative financial instruments 7 3,000 – 3,000 Due to related parties 10 – 60,244 60,244 Borrowings 15 – 4,351,767 4,351,767
	3,000 6,284,194 6,287,194

Trade and other receivables exclude advances to contractors and suppliers, prepayments Trade payables and other liabilities exclude operating lease advances and contract advances. and other receivables.

32. NET DEBT RECONCILIATION

33. COMMITMENTS

32. NET DEBT RECONCILIATION	33. COMMITMENTS
Notes 2024 AED’000 2023 AED’000 Cash and bank balances 11 1,017,039 1,535,183 Borrowings – repayable after oneyear 15 (5,213,253) (4,351,767) (4,196,214) (2,816,584) Cash and bank AED’000 Borrowing due within 1 year AED’000 Borrowing due after 1 year AED’000 Total AED’000 Net debt as at 1 January 2024 1,535,183 – (4,351,767) (2,816,584) Cash flows (518,144) – (850,000) (1,368,144) Other non-cash movement – – (11,486) (11,486) Net debt as at 31 December 2024 1,017,039 – (5,213,253) (4,196,214) Net debt as at 1 January 2023 1,260,514 – (4,341,982) (3,081,468) Cash flows 274,669 – 53,796 328,465 Other non-cash movement – – (63,581) (63,581) Net debt as at 31 December 2023 1,535,183 – (4,351,767) (2,816,584) The presentation of cash and bank balances within the net debt reconciliation is a voluntary inclusion in addition to the reconciliation of liabilities arising from financing activities as disclosed in the consolidated statement of cashflows.	(a) Capital commitments 2024 AED’000 2023 AED’000
	Property and equipment 9,804 4,679 Intangible assets 10,332 5,606 Investmentproperties 496,655 612,463
	(b) Operating lease arrangements – the Group as lessor Operating non-cancellable leases relate to the investment property owned by the Group with lease terms of between 1 to 5 years for building leases and between 20 to 50 years for land leases. Future minimum rentals receivable under non-cancellable operating leases are as follows: 2024 AED’000 2023 AED’000
	Later than 5 years 13,953,659 12,157,819 Later than 1 year and not later than 5 years 2,727,581 2,818,047 Not later than 1year 762,767 798,861
	17,444,007 15,774,727
	(c) Operating lease arrangements – the Group as lessee 2024 AED’000 2023 AED’000
	Later than 1 year and not later than 5 years 3,043 2,880 Not later than 1year 1,265 715
	4,308 3,595

(d) Contingencies	2024	2023
	AED’000	AED’000
Bank guarantees (i)	358,222	–
Letter of credits (ii)	43,164	96,602

(i) This represents bank guarantees provided to a related party for investment property acquired on deferred payment plan.
(ii) This pertains to letters of credit issued for construction of certain infrastructure costs of the Group.

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Notes to the Consolidated Financial Statements For the year ended 31 December 2024 (continued)

34. SEGMENT REPORTING

Information regarding the Group’s reportable segments is set out below in accordance with IFRS 8 Operating Segments. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group’s Chief Executive Officer, as the chief operating decision maker, in order to allocate resources to the segment and to assess its performance. Information reported to the Group’s Chief Executive Officer for the purpose of resource allocation and assessment of segment performance focuses on the financial performance of each business segments only. No information that includes the segments’ assets and liabilities are reported to the Group’s Chief Executive Officer.

The Group is organised into four reportable segments: (i) commercial leasing, (ii) industrial leasing, (iii) land leasing and (iv) services and others. The following describes the types of properties, products or services that fall within each of our financial segments:

Commercial leasing consists of built to lease and built to suit properties. Built to lease properties are our commercial properties which are typically developed for multiple tenants and are leased out to customers, and include office, retail space and business centres (built to lease). Built to suit properties typically represent our commercial properties where we were able to identify customers in advance of developing the property in order to build a single-tenant customised property that meet a customer’s specifications, which are then leased out to them upon completion or similar properties (built to suit).
Industrial leasing consists of warehouses and staff accommodation (housing for businesses to use to accommodate their workers).
Land leasing consists of land leases. Our land leases represent land available within our business districts that already has or is expected to develop the necessary infrastructure (such as connecting roads, water, electricity and sewage) that allows us to lease the land. We have intentionally retained such land in order to be able to lease it to customers to suit their specific needs, such as manufacturing, commercial, retail, residential or academic purposes.
Services consist of fees from the services that we provide, including those generated from our AXS platform, venue management services, property management and leasing agreements and our in5 platform.
Other segments include businesses that individually do not meet the criteria of a reportable segment. These segments include operations and support functions.

The Group operates primarily in United Arab Emirates and accordingly no further geographical analysis of revenue and profit are given. Segment revenue reported represents revenue generated from customers and there were no intersegment sales.

The accounting policies of the reportable segments are the same as the Group’s accounting policies. Segment results represents the profit earned by each segment before interest, depreciation and amortisation. This is the measure reported to the Group’s Chief Executive Officer for the purpose of resource allocation and assessment of segment performance.

Information regarding these segments are as follows:	Commercial	Land	Industrial	Services
	leasing	leasing	leasing	and others	Total
	AED’000	AED’000	AED’000	AED’000	AED’000
31 December 2024
Revenue	1,217,658	532,224	356,902	295,218	2,402,002
Direct cost	(249,063)	(9,176)	(82,100)	(50,285)	(390,624)
Other operating income	46,102	87,787	–	3,614	137,503
Other expenses	(210,119)	(34,316)	(30,927)	(19,845)	(295,207)
Segment results before interest and depreciation and amortisation	804,578	576,519	243,875	228,702	1,853,674
Depreciation and amortisation	(355,610)	–	(69,352)	(4,360)	(429,322)
Income tax expense	(17,398)	(14,104)	(6,720)	–	(38,222)
Unallocated net finance cost	–	–	–	–	(157,679)
Profit for theyear	431,570	562,415	167,803	224,342	1,228,451
31 December 2023
Revenue	1,127,536	501,716	304,282	239,663	2,173,197
Direct cost	(231,551)	(3,772)	(66,629)	(36,063)	(338,015)
Other operating income	45,319	10,000	630	106	56,055
Other expenses	(179,139)	(16,774)	(17,854)	(23,914)	(237,681)
Segment results before interest and depreciation and amortisation	762,165	491,170	220,429	179,792	1,653,556
Depreciation and amortisation	(323,748)	–	(65,000)	(5,758)	(394,506)
Unallocated net finance cost	–	–	–	–	(180,775)
Profit for theyear	438,417	491,170	155,429	174,034	1,078,275

Management primarily relies on net finance cost, not the gross finance income and finance cost in managing all segments and does not allocate to segments. Therefore, unallocated net finance cost is disclosed.

No single customer contributed 10% or more to the Group’s revenue.

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Strategic Report

ESG

Financial Statements

EPRA Performance Measures

TECOM Group PJSC is a member of EPRA since its listing on Dubai Financial Market (DFM) in 2022 and among the few real estate companies in the GCC region to adopt the EPRA BPR disclosures.

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Corporate Governance Financial Statements

Strategic Report ESG Corporate Governance Financial Statements

Strategic Report

ESG

EPRA Performance Measures For the year ended 31 December 2024

Strategic Report ESG Corporate Governanc EPRA Performance Measures For the year ended 31 December 2024	e Financial Statements
EPRA Performance Measure Definition Purpose	2024 AED’000 2023 AED’000
EPRA Earnings Earnings from operational activities. A key measure of a company’s underlying operating results and an indication of the extent to which current dividend payments are supported byearnings.	1,637,871 1,501,853
EPRA NAVs EPRA Net Reinstatement Value:Assumes that entities never sell assets and aims to represent the value required to rebuild the entity. The EPRA NAV set of metrics make adjustments to the NAV per the IFRS financial statements to provide stakeholders with the most relevant information on the fair value of the assets and liabilities of a real estate investment company, under different scenarios. EPRA Net Tangible Assets:Assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax. EPRA Net Disposal Value:Represents the shareholders’ value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of anyresultingtax.	20,735,788 17,180,297
	20,719,100 17,159,870
	20,900,098 17,399,292
EPRA Net Initial Yield (NIY) Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers’ costs. A comparable measure for portfolio valuations. This measure should make it easier for investors to judge themselves, how the valuation of portfolio X compares with portfolio Y. Companies should provide detail on the calculation of the measure and reconciliation between the EPRA NIY and ‘topped-up’ NIY in the recommended format as shown in Section 3.4.” 6.75% 6.75% EPRA ‘topped-up’ NIY This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rentperiods and steprents). 6.95% 7.01%
	6.95% 7.01%
EPRA VacancyRate Estimated Market Rental Value (ERV) of vacant space divided by ERV of the wholeportfolio. A “pure” (%) measure of investment property space that is vacant, based on ERV.	7.16% 10.95%
EPRA Cost Ratios Administrative & operating costs (including costs of direct vacancy) divided by gross rental income. A key measure to enable meaningful measurement of the changes in a company’s operating costs. Administrative & operating costs (excluding costs of direct vacancy) divided by gross rental income.	10.32% 13.07%
	8.33% 10.53%
EPRA LTV Debt divided by market value of the property A key (shareholder-gearing) metric to determine the percentage of debt comparingto the appraised value of theproperties.	26.32% 25.32%

	2024	2023
EPRA Earnings	AED’000	AED’000
Earnings per IFRS income statement Adjustments to calculate EPRA Earnings, exclude: Changes in value of investment properties, development properties held for investment and other interests	1,228,451 (409,420)	1,078,275 (371,395)
Profits or losses on disposal of investment properties, development properties held for investment and other interests	–	–
Profits or losses on sales of trading properties including impairment charges in respect of trading properties.	–	–
Tax on profits or losses on disposals	–	–
Negative goodwill/goodwill impairment	–	–
Changes in fair value of financial instruments and associated close-out costs	–	(52,183)
Acquisition costs on share deals and non-controlling joint venture interests	–	–
Deferred tax in respect of EPRA adjustments	–	–
Adjustments (i) to (viii) above in respect of joint ventures (unless already included under proportional consolidation)	–	–
Non-controllinginterests in respect of the above	–	–
EPRA Earnings Basic number of shares EPRA Earnings per Share (EPS) Company specific adjustments: Company specific adjustment 1 Company specific adjustment 2 Company specific Adjusted Earnings	1,637,871 5,000,000 0.33 – – 1,637,871	1,501,853 5,000,000 0.30 – – 1,501,853
Companyspecific Adjusted EPS	0.33	0.30

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Strategic Report ESG Corporate Governance Financial Statements

Strategic Report ESG

EPRA Performance Measures For the year ended 31 December 2024 (continued)

EPRA Performance Measures For the year ended 31 December 2024	Strategic Report ESG (continued)	Corporate Governance Financial Statements
EPRA Net Asset Value Metrics	2024 AED’000 EPRA NRV EPRA NTA EPRA NDV	2023 AED’000
		EPRA NRV EPRA NTA EPRA NDV
IFRS Equity attributable to shareholders Include/Exclude*: i) Hybrid instruments Diluted NAV	6,707,694 6,707,694 6,707,694	6,329,007 6,329,007 6,329,007 – – – 6,329,007 6,329,007 6,329,007

	– – –
	6,707,694 6,707,694 6,707,694
Include*: ii.a) Revaluation of IP (if IAS 40 cost option is used) ii.b) Revaluation of IPUC¹ (if IAS 40 cost option is used) ii.c) Revaluation of other non-current investments² iii) Revaluation of tenant leases held as finance leases³ iv) Revaluation of trading properties⁴ Diluted NAV at Fair Value		11,070,285 11,070,285 11,070,285 – – – – – – – – – – – – 17,399,292 17,399,292 17,399,292
	14192404 14192404 14192404
	,, ,, ,, – – –
	– – –
	– – –
	– – –
	20,900,098 20,900,098 20,900,098
Exclude: v) Deferred tax in relation to fair value gains of IP vi) Fair value of financial instruments vii) Goodwill as a result of deferred tax viii.a) Goodwill as per the IFRS balance sheet viii.b) Intangibles as per the IFRS balance sheet Include: ix) Fair value of fixed interest rate debt x) Revaluation of intangibles to fair value xi) Real estate transfer tax		– – – (218,995) (218,995) – – – – – – – – (20,427) – – – – – – – – – – – – –

	– – – (164,310) (164,310) –
	– – –
	– – –
	– (16,688) –
	– – –
	– – –
	– – –
	– – –
NAV	20,735,788 20,719,100 20,900,098	17,180,297 17,159,870 17,399,292
Fully diluted number of shares NAVper share	5000000 5000000 5000000	5,000,000 5,000,000 5,000,000 3.44 3.43 3.48
	,, ,, ,, 4.15 4.14 4.18

1 Difference between development property held on the balance sheet at cost and fair value of that development property.

2 Revaluation of intangibles to be presented under adjustment (x) Revaluation of Intangibles to fair value and not under this line item.
3 Difference between finance lease receivables held on the balance sheet at amortised cost and the fair value of those finance lease receivables.
4 Difference between trading properties held on the balance sheet at cost (IAS 2) and the fair value of those trading properties.
“Include” indicates that an asset (whether on or off balance sheet) should be added to the shareholders’ equity, whereas a liability should be deducted.

		2024	2023
EPRA NIY and ‘topped-up’ NIY1		AED’000	AED’000
Investment property – wholly owned Investment property – share of JVs/Funds Trading property (including share of JVs) Less:developments Completed property portfolio Allowance for estimated purchasers’ costs		28,012,001 – – 1,750,040 26,261,961 853,514	22,934,827 – – 1,293,389 21,641,438 726,973
Gross up completed property portfolio valuation Annualised cash passing rental income Property outgoings	B	27,115,475 2,244,728 415,039	22,368,411 1,905,703 396,849
Annualised net rents Add:notional rent expiration of rent free periods or other lease incentives2,3	A	1,829,689 53,540	1,508,854 58,164
Topped-up net annualised rent	C	1,883,228	1,567,018
EPRA NIY	A/B	6.75%	6.75%
EPRA “topped-up” NIY4	C/B	6.95%	7.01%

1 Disclosure of EPRA net yield calculations on a segmental basis is encouraged.

Adjustment for unexpired lease incentives such as rent-free periods, discounted rent periods and step rents. The adjustment includes the annualised cash rent that will apply at the expiry of the lease incentive.

Companies should disclose the period over which their rent-frees expire in a footnote (or the weighted average if management’s view is that this gives a clearer picture).

Companies who choose to publish additional yields are encouraged to provide a reconciliation showing the specific adjustments from the EPRA NIY to this company specific yield.

EPRA VACANCY RATE

EPRA vacancy rate is defined as the ratio between the estimated rental value of vacant space and the estimated rental value of the entire Investment Properties portfolio of TECOM Group. Properties under development are not included in the calculation of this ratio.

Properties under development are not included in the calculation of this ratio.
		2024	2023
EPRA Vacancy Rate		AED’000	AED’000
Estimated Rental Value of vacant space	A	173,390	233,011
Estimated rental value of the wholeportfolio	B	2,421,713	2,128,349
EPRA VacancyRate	A/B	7.16%	10.95%

Across the Investment Properties portfolio, which includes commercial office, retail, industrial warehouses, worker accommodation and land leases, the EPRA vacancy rate has decreased to 7.16% from 10.95% in 2024. This drop in the vacancy rate is largely attributable to the industrial sector, driven by stronger leasing performance in warehouses and worker accommodation, with a 9% increase in occupancy compared to prior year.

“Exclude” indicates that an asset (part of the balance sheet) is reversed, whereas a liability (part of the balance sheet) is added back.

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Strategic Report ESG

Corporate Governance

EPRA Performance Measures For the year ended 31 December 2024 (continued)

EPRA Cost Ratios
2024
AED’000
2023
AED’000

(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)

Include:
Administrative/operating expense line per IFRS income statement
560,334
551,491
Net service charge costs/fees
156,903
121,601
Management fees less actual/estimated profit element
–
–
Other operating income/recharges intended to cover overhead expenses less any related profits
–
–
Share of Joint Ventures expenses
–
–
Exclude (if part of the above):
Investment property depreciation
409,420
371,395
Ground rent costs
1,402
3,747
Service charge costs recovered through rents but not separately invoiced
121,114
78,904
EPRA Costs (including direct vacancy costs)
A
185,301
219,046
Direct vacancy costs
35,789
42,697
EPRA Costs (excluding direct vacancy costs)
B
149,512
176,349
Gross Rental Income less ground rents – per IFRS
1,915,845
1,754,361
Less: service fee and service charge costs components of Gross Rental Income (if relevant)
121,114
78,904
Add: share of Joint Ventures (Gross Rental Income less ground rents)
–
–
Gross Rental Income
C
1,794,731
1,675,457

EPRA Cost Ratio (including direct vacancy costs)
A/C
10.32%
13.07%
EPRA Cost Ratio (excludingdirect vacancycosts)
B/C
8.33%
10.53%

Additional Recommended EPRA Disclosure

Overhead and operating expenses capitalised (incl. share of joint ventures).
Companies should clearly explain their policy with regard to overheads capitalised even if they do not disclose the amount of overheads capitalised or disclose a nil amount (see explanation).

2024 Group AED 000 as reported	Proportionate Consolidation Share of Joint Ventures AED’000 Share of Material Associates AED’000 Non- controlling Interests AED’000 Combined AED’000
Include: Borrowings from Financial Institutions 5,213,253 Commercial paper – Hybrids (including Convertibles, preference shares, debt, options, perpetuals) – Bond Loans – Foreign Currency Derivatives (futures, swaps, options and forwards) – Net Payables 3,187,579 Owner-occupied property (debt) – Current accounts (Equity characteristic) – Exclude: – Cash and cash equivalents 1,017,039
	– – – 5213253
	,, – – – –
	– – – –
	– – – –
	– – – –
	– – – 3187579
	,, – – – –
	– – – –
	– – – –
	– – – 1,017,039
Net Debt (a) 7,383,793	– – – 7,383,793
Include: Owner-occupied property – Investment properties at fair value 27,874,364 Properties held for sale – Properties under development – Intangibles 16,688 Net Receivables – Financial assets 164.309

	– – – –
	– – – 27,874,364
	– – – –
	– – – –
	– – – 16688
	, – – – –
	– – – 164,309
Total PropertyValue (b) 28,055,361	– – – 28,055,361
LTV (a/b) 26.32%	– – – 26.32%

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Strategic Report

ESG

Corporate Governance

EPRA Performance Measures

Glossary

For the year ended 31 December 2024 (continued)

Strategic Report EPRA Performance Measures For the year ended 31 December 2024(continued)	ESG Corporate Governance Financial Statements
2023 Group AED’000 as reported	Proportionate Consolidation Share of Joint Ventures AED’000 Share of Material Associates AED’000 Non- controlling Interests AED’000 Combined AED’000
Include: Borrowings from Financial Institutions 4,351,767 Commercial paper – Hybrids (including Convertibles, preference shares, debt, options, perpetuals) – Bond Loans – Foreign Currency Derivatives (futures, swaps, options and forwards) – Net Payables 3,051,832 Owner-occupied property (debt) – Current accounts (Equity characteristic) – Exclude: – Cash and cash equivalents 1,535,183	– – – 4,351,767 – – – – – – – – – – – – – – – – – – – 3,051,832 – – – – – – – – – – – – – – – 1,535,183
Net Debt (a) 5,868,416	– – – 5,868,416
Include: Owner-occupied property – Investment properties at fair value 22,934,827 Properties held for sale – Properties under development – Intangibles 20,427 Net Receivables – Financial assets 218,995	– – – – – – – 22,934,827 – – – – – – – – – – – 20,427 – – – – – – – 218,995
Total PropertyValue (b) 23,174,249	– – – 23,174,249
LTV (a/b) 25.32%	– – – 25.32%

ARM – Active Risk Manager

BTL – Built-to-lease: multi-tenant investment properties

BTS – Built-to-suit: purpose-built investment properties as per requirements of tenants CAPEX – Capital expenditure

CBD – Central business district

CEO – Chief Executive Officer

CFE – Certified Fraud Examiner

CFO – Chief Finance Officer

CIA – Certified Internal Auditor

COSO – The Committee of Sponsoring Organizations of the Treadway Commission

CSR – Corporate social responsibility Customer Retention – Value of leases renewed during a period divided by value of leases due for renewal during the period
Customers – Includes tenants, freelancers, and services clients
DDA – Dubai Development Authority

DFM – Dubai Financial Market

DHAM – Dubai Holding Asset Management

EBITDA – Earnings before interest, tax, depreciation, and amortisation EITC – Emirates Integrated Telecommunications Company PJSC

Employee Retention – Percentage of high performing employees retained EPRA – European Public Real Estate Association

EPRA BPR – EPRA best practice recommendations

EPRA Earnings – IFRS net profit adjusted mainly to remove impacts of depreciation and fair valuation in accordance with EPRA BPR
EPRA NAV – Net asset value calculated in accordance with EPRA BPR EPRA NIY – EPRA net initial yield

EPS – Earnings per share (net profit divided by number of shares) ERM – Enterprise Risk Management

ESG – Environmental, Social and Governance

FFO – Funds from operations (Funds generated from operations, including net finance costs paid, before working capital changes)
GDP – Gross domestic product

GLA – Gross leasable area

IMF – International Monetary Fund

IP – Investment property

IPPF – International Professional Practices Framework

KPI – Key Performance Indicator

KRI – Key Risk Indicator

LEED – Leadership in Energy and Environment Design Leverage – Net debt divided by EBITDA

Like-for-Like Valuation gain – Percentage change in valuation of properties held at the beginning of the period

LTV – Loan to value ratio

MENA – Middle East and Northern Africa

MENAT – Middle East, North Africa and Turkey MNC – Multi national company

MoIAT – Ministry of Industry and Advanced Technology MOU – Memorandum of understanding

NAV – Net asset value

NCBD – Non-central business district

Net Debt – Gross debt minus cash and bank balances

OE – Oxford Economics

OpEx – Operating expenses

PMLA – Property management and leasing agreement

Report Currency – United Arab Emirates Dirham (AED)

RFCF – Recurring free cashflow (FFO minus enhancement and maintenance capital expenditure additions)

ROE – Return on equity

RPT – Related Party Transactions

SCA – Securities and Commodities Authority

TSR – Total Shareholder Return

UAECA – UAE Chartered Accountant

WALT – Weighted Average remaining Lease Term

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Commercial Building 1 Dubai Studio City Dubai United Arab Emirates Tel: 800 8 TECOM

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TECOM GROUP PJSC — Annual Report 2024

66431_rns_2025-02-28_18a37e72-dfeb-48a8-a7a3-8ae2c8ca0de7.pdf

Our Vision

Our Mission

Delivering Strong Financial Performance

Abdulla Belhoul

ESG Highlights

EPRA Measures

A thriving ecosystem of future growth

Our ecosystem

Our Segments

Our Sectors

An Integral Part of Dubai’s Economic Diversification

Creating Connected Communities

Driving Growth, Innovation, and Excellence Across Dubai’s Business Landscape

Thriving Customers and New Partnerships

Catalysing Start-up Success

Major Events

FIFA Beach Soccer World Cup UAE 2024

Dubai Fashion Week:

A Global Showcase

A VisionTurned Reality

His Highness Sheikh Mohammed

bin Rashid Al Maktoum

Foundational Vision: Building Dubai’s Digital Future

Growth and Development: A Catalyst for Economic Diversification

Investing for a sustainable future

Dear Shareholders,

A Historic Investment Cycle

Portfolio Development

Net profit

AED 0.16

Empowering Knowledge and Talent

Future Outlook

Delivering Value to Shareholders

A strategy for innovation and growth

Enhancing and Enriching the Business Portfolio

Commitment to

Sustainability and ESG

Fireside chat with the CEO

Looking ahead: Goals for 2025

REASONS TO INVEST

Our Equity Story

Market Position

and Leadership

Strategic Growth and Expansion

Consistently Strong Financial Performance

Hub for Diversified and

Loyal Customers

Sustained

Shareholder Value

Market Position and Leadership

Hub for Diversified and Loyal Customers

Strategic Growth and Expansion

Sustained Shareholder Value

Consistently Strong Financial Performance

Accountability, Transparency and Social Responsibility (Governance & ESG)

14.2 GWh

Dubai and the UAE

Dubai and the UAE continued

Market Drivers

Commercial Real Estate

Office Supply

Commercial Real Estate continued

Office Rental Rates

What this Means for TECOM Group

Industrial Markets

Industrial Markets continued

Warehousing

Warehouse Average Rental Rate (AED/sq.ft)

What this Means for

TECOM Group

Industrial Markets continued

Workers’ Accommodation

TECOM Group’s Vision for a Thriving Future

Transforming our Assets

Case Study:

Outcome

Nurture win-win relationships Collaboration and Partnership: Fuelling Dubai’s Industrial Evolution

TECOM GROUP PJSC Annual Report 2024