Tabreed and Dubai Holding Seal AED 1.5B Cooling Deal
Tabreed partners with Dubai Holding to deliver sustainable cooling for Palm Jebel Ali, marking a significant milestone in district cooling solutions.
Summary
Tabreed and Dubai Holding have partnered to provide district cooling services for Palm Jebel Ali, with an estimated investment of AED 1.5 billion and a cooling capacity of 250,000 RTs.
In a landmark move, National Central Cooling Company (Tabreed) and Dubai Holding Investments have entered into a concession agreement to provide district cooling services for the ambitious Palm Jebel Ali development in Dubai. This strategic partnership, which involves a joint venture with Tabreed holding a 51% stake and Dubai Holding Investments 49%, is set to revolutionize the cooling landscape in the region.
The agreement, supported by major shareholders Mubadala and ENGIE, underscores a commitment to sustainable and efficient cooling solutions. The project is anticipated to deliver approximately 250,000 Refrigeration Tons (RTs) of cooling capacity, with construction slated to begin in Q2 2025 and the first phase of services expected by 2027. The total investment for this endeavor is estimated at AED 1.5 billion, reflecting the scale and significance of the project.
Dr. Bakheet Al Katheeri, Chairman of Tabreed and CEO of Mubadala's UAE Investments Platform, emphasized the importance of this project in Tabreed's 27-year history, highlighting its role in driving sustainability and societal progress. Meanwhile, Omar Karim, CEO of Dubai Holding Investments, remarked on the project's alignment with Dubai Holding's vision for sustainable community development.
The collaboration between Tabreed and Dubai Holding is poised to enhance the delivery of cooling services, optimize capacity, and ensure robust customer protection. This initiative not only represents a significant milestone for Tabreed but also signals a broader trend towards environmentally conscious infrastructure development in the GCC region.
From a financial perspective, the partnership with Dubai Holding and the backing of Mubadala and ENGIE provide a strong foundation for Tabreed's growth. However, potential investors should consider the phased nature of the project and the timeline extending to 2027 for full implementation. Given the strategic importance and the solid backing, holding Tabreed shares could be a prudent choice for investors seeking stability and long-term growth potential.
Source
Summary
National Central Cooling Company (Tabreed) and Dubai Holding Investments have entered a concession agreement to provide district cooling services for Palm Jebel Ali in Dubai. The joint venture, with Tabreed holding a 51% stake and Dubai Holding Investments 49%, aims to offer approximately 250,000 Refrigeration Tons (RTs) of cooling capacity. The project, valued at AED 1.5 billion, will be executed in multiple phases, with construction expected to start in Q2 2025 and initial services by 2027. The agreement is supported by Tabreed's major shareholders, Mubadala and ENGIE. This collaboration is designed to optimize cooling capacity, enhance information-sharing, and ensure sustainable cooling solutions for the development.
