Dubai: National Central Cooling Company (Tabreed) and Dubai Holding Investments, a part of Dubai Holding, have entered into a concession agreement to deliver district cooling services to Palm Jebel Ali in Dubai. The partnership will result in the formation of a joint venture, with Tabreed taking a 51 percent stake and Dubai Holding Investments holding the remaining 49 percent. This collaboration aims to optimise cooling capacity, enhance the sharing of information, and bolster customer protection while delivering sustainable cooling solutions for one of Dubai's most notable developments.
According to Emirates News Agency, the agreement is supported by Tabreed's major shareholders, including sovereign investor Mubadala, which holds a 42 percent stake, and the French low-carbon energy and services firm ENGIE, with a 40 percent stake. The agreement signing was attended by Khalid Al Marzooqi, CEO of Tabreed, and Omar Karim, CEO of Dubai Holding Investments, along with senior officials from Tabreed, Dubai Holding, Mubadala, and ENGIE.
The construction of the district cooling network is anticipated to begin in the second quarter of 2025, pending customary approvals, with the delivery of the first cooling services expected by 2027. The system is projected to provide approximately 250,000 refrigeration tons (RTs) of cooling capacity, with an estimated investment of AED1.5 billion.
Following the agreement signing, Dr. Bakheet Al Katheeri, Chairman of Tabreed and CEO of Mubadala's UAE Investments Platform, highlighted Mubadala's global reputation as a responsible investor with a firm commitment to its ESG framework. He emphasized that Tabreed is a crucial component of Mubadala's portfolio, driving sustainability and societal progress.
Omar Karim of Dubai Holding echoed these sentiments, stating that the agreement aligns with Dubai Holding's long-term vision of developing sustainable communities with robust infrastructure. He noted that Palm Jebel Ali is one of Dubai's most ambitious projects, and incorporating district cooling services supports customers while fulfilling the commitment to future-ready urban environments.
Khalid Al Marzooqi remarked on the transformative nature of the Palm Jebel Ali project, emphasizing its significance in shaping Dubai's future and the role of the agreement in ensuring world-class infrastructure standards.