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IoT tech company X2M takes 7pc stake in Dicode after major UAE contract win
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X2M to take 7% stake in partner Dicode Smart Connect Electronics, reflecting confidence in its future
Dicode wins contract with major UAE construction company to install 10,000 residential apartments
Second 'Metering-as-a-Service' commercial contract for Dicode secured in the UAE in 2025
Special Report: X2M Connect will take a 7% stake in strategic partner Dicode Smart Connect Electronics, which has secured a contract with a major UAE-based construction company to install smart gas and utility meters across 10,000 residential apartments.
Australian Internet of Things (IoT) technology company X2M Connect (ASX:X2M) said the deal marks the second major commercial contract win for Dicode in 2025, following its February announcement of a contract with Ocean Gas to digitise gas distribution networks.
Dicode's core business is centred on rolling out 'Metering as a Service' in the Middle East, with the new project expanding its footprint in the Gulf Cooperation Council region's rapidly growing smart infrastructure sector.
X2M said the latest contract would generate ~$400,000 of gross profit over the next 10 years. X2M investment in Dicode shows confidence
As part of its long-term strategic alignment with Dicode, X2M will invest US$150,000 in the business for a 7% ownership share.
The company said its investment reflects X2M's confidence in Dicode's growth potential and profitability as it scales its smart metering technology and services across the Middle East.
Under the terms of the partnership, Dicode has committed to using X2M's proprietary technology Vision by X2M for a minimum of 10 years, positioning X2M as the foundational technology partner for Dicode's deployments.
Importantly, X2M retains the flexibility to directly service other customers in the region.
Watch : X2M flows new South Korean contracts 'Partnering with a well-connected regional operator'
X2M CEO Mohan Jesudason said Dicode has swiftly demonstrated its ability to capture a previously untapped smart metering market, securing two major contracts since February.
'This contract validates our strategy to enter the Middle East via the UAE by partnering with a well-connected regional operator,' he said.
'Our equity stake reflects confidence in Dicode's long-term success and strengthens our position as their exclusive technology partner.
'As demand for smart metering accelerates and Dicode expands beyond the UAE, we're well placed to become the technology platform of choice across the broader region and to support the Middle East's digital infrastructure transformation.'
Dicode Smart Connect Electronics CEO Satish Chandran said the contract win with a leading UAE construction group marked a major step in its mission to digitise energy infrastructure across the region.
'The rapid uptake of our smart metering technology underscores the scale of the opportunity in the Middle East,' Chandran said.
'Partnering with X2M gives us a world-class technology backbone that's critical to scaling efficiently and delivering at speed.
'With strong demand in neighbouring markets like Saudi Arabia, we're focused on expanding our footprint and cementing our position as the regional leader in smart utility solutions.'
This article was developed in collaboration with X2M Connect, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Originally published as IoT tech company X2M takes 7pc stake in Dicode after major UAE contract win
