National Central Cooling Company (Tabreed) and Dubai Holding Investments, a subsidiary of Dubai Holding, have signed a concession agreement to deliver district cooling services for Palm Jebel Ali in Dubai.
As part of the agreement, a joint venture has been established, with Tabreed holding a 51% stake and Dubai Holding Investments 49%. The partnership aims to optimize cooling capacity, improve information-sharing, and enhance customer protection while ensuring sustainable cooling solutions for one of Dubai’s most significant developments.
The agreement is backed by Tabreed’s key shareholders—sovereign investor Mubadala (42%) and French low-carbon energy and services company ENGIE (40%). It was signed by Khalid Al Marzooqi, Chief Executive Officer of Tabreed, and Omar Karim, Chief Executive Officer of Dubai Holding Investments, in the presence of senior representatives from Tabreed, Dubai Holding, Mubadala, and ENGIE.
Pending regulatory approvals, construction of the district cooling network is slated to begin in Q2 2025, with initial cooling services expected by 2027. The system is designed to meet a demand of approximately 250,000 RTs of cooling capacity and will require an estimated investment of $41o million (AED 1.5 billion).
Following the signing, Dr. Bakheet Al Katheeri, Chairman of Tabreed and Chief Executive Officer of Mubadala’s UAE Investments Platform, stated: “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, highlighted: “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.”
Echoing this sentiment, 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 alike.”