National Central Cooling Company (Tabreed) and Dubai Holding Investments, part of Dubai Holding, have entered a concession agreement to build a district cooling network for Palm Jebel Ali at an estimated cost of AED1.5 billion ($410 million).
Tabreed will hold a 51 per cent stake in the joint venture and Dubai Holding Investments 49 per cent.
The JV is supported by Tabreed’s major shareholders, sovereign investor Mubadala (42 per cent) and the French low-carbon energy and services company ENGIE (40 per cent).
Subject to approvals, construction of the district cooling network is expected to commence in the second quarter of 2025, with the first cooling services expected to be delivered by 2027. Once complete, the system will generate approximately 250,000 RTs of cooling capacity.
Major milestone for Tabreed
Dr Bakheet Al Katheeri, Chairman of Tabreed and Chief Executive Officer of Mubadala’s UAE Investments Platform, commented: “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. I am eagerly looking forward to witnessing the successful progress of this landmark project.”
Omar Karim, Chief Executive Officer of Dubai Holding Investments, added: “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.”
Tabreed has provided district cooling services to several iconic UAE developments such as the Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates Towers, Yas Island, Al Maryah Island, Dubai Mall, Dubai Opera, Dubai Metro, Bahrain Financial Harbour, as well as the Jabal Omar Development in the Holy City of Makkah.
Khalid Al Marzooqi, Chief Executive Officer of Tabreed, 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. With our extensive experience and cutting-edge technology, we will deliver reliable and environmentally responsible cooling that benefits residents, visitors and stakeholders.”
Founded in 1998, Tabreed owns and operates 92 plants in its portfolio, including 76 in the UAE, five in Saudi Arabia, eight in Oman, one in the Kingdom of Bahrain, one in India and one in Egypt, in addition to other international projects and operations.
Dubai Holding, established in 2004, is a diversified global investment company with investments in more than 30 countries. It has an extensive portfolio of over AED284 billion ($77.3 billion) worth of assets that support the diversification and sustainable growth of Dubai’s economy across 10 key sectors, including real estate, hospitality, retail, leisure & entertainment and media.
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