National Central Cooling Company (Tabreed) and Dubai Holding Investments, part of Dubai Holding, have entered a concession agreement to provide district cooling services for Palm Jebel Ali in Dubai.
The agreement establishes a joint venture, with Tabreed holding a 51 percent stake and Dubai Holding Investments 49 percent. This structure is designed to optimize cooling capacity, enhance information-sharing and strengthen customer protection while ensuring sustainable cooling solutions for one of Dubai’s most transformative developments.
Supported by Tabreed’s major shareholders, sovereign investor Mubadala (42 percent) and the French low-carbon energy and services company ENGIE (40 percent), the agreement was signed by Khalid Al Marzooqi, CEO of Tabreed, and Omar Karim, CEO of Dubai Holding Investments, in the presence of senior officials from Tabreed, Dubai Holding, Mubadala, and ENGIE.
Subject to customary approvals, construction of the district cooling network is expected to commence in Q2 2025, with the first cooling services expected to be delivered by 2027.
Over time, the system will address the need for approximately 250,000 RTs of cooling capacity and require an estimated investment of AED1.5 billion.
Following the signing, Dr. Bakheet Al Katheeri, Chairman of Tabreed and Chief Executive Officer of Mubadala’s UAE Investments Platform, said, “Mubadala has a worldwide reputation for being a responsible investor with an unwavering focus on its ESG framework and Tabreed is a vital part of our portfolio as a driver of sustainability and societal progress.
The signing marks a major milestone in Tabreed’s 27-year history and underscores the company’s commitment to providing sustainable, high-efficiency cooling solutions for large-scale developments.”
Karim commented, “This agreement reinforces Dubai Holding’s long-term vision of developing sustainable communities with high-quality infrastructure at their core. Palm Jebel Ali is one of Dubai’s most ambitious developments and by incorporating district cooling services we support our customers and align to our commitment to deliver future-ready urban environments.”
In turn, Al Marzooqi said, “Palm Jebel Ali is a transformative project that will shape Dubai’s future and we are proud to play a role in ensuring its infrastructure meets world-class standards.”
— By WAM
