UAE’s leading district cooling provider Tabreed has decided to allow 100 percent foreign ownership in the company.
Previously the limit had been set at 49 percent, in line with the then prevailing law regarding foreign ownership applicable to local companies.
UAE has subsequently changed the law to allow full foreign ownership in companies, as part of its efforts to attract foreign direct investment into the country.
Tabreed shareholders approved the company’s proposal on allowing 100 percent ownership by amending its article of association on Monday.
Chairman Khaled Abdulla Al Qubaisi said the move would enable the company to benefit from foreign investment as it continues on its path of sustainable growth.
“Tabreed is renowned the world over for its expertise and unrivalled experience in the district cooling industry. So, it makes perfect sense to adapt and modernise in line with developments in UAE company laws,” Al Qubaisi said.
“Tabreed is a hugely valuable company to Mubadala – its majority shareholder since 2011 – and what this revision to the Articles of Association does is maximise flexibility and ensure optimum share marketability, in turn making Tabreed’s future more secure than ever,” he said.
CEO Khalid Abdulla Al Marzooqi said the decision on increasing foreign ownership of Tabreed was an important step in unleashing the company’s full potential.
“We have a robust and healthy balance sheet and continue to post record profits, while growing the company’s portfolio of assets and services, ably demonstrated by Fitch’s revised rating outlook to ‘stable’ and affirmed at BBB.
“Tabreed’s unwavering commitment to its investor relations can only benefit by today’s announcement, which further solidifies our reputation as a truly progressive UAE company,” Al Marzooqi said.
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