Tabreed and Dubai Holding Forge Strategic Partnership for District Cooling at Palm Jebel Ali
In a significant development poised to enhance sustainable urban living in Dubai, the National Central Cooling Company, commonly known as Tabreed, recently announced the establishment of a joint venture with Dubai Holding Investments. This partnership aims to deliver district cooling services for the expansive Palm Jebel Ali project, heralding a new chapter in the region’s infrastructure capabilities.
The collaborative initiative will see Tabreed holding a 51% stake while Dubai Holding Investments will retain 49%. The joint venture is set to invest AED 1.5 billion (approximately USD 408 million) into the infrastructure, underscoring a commitment to sustainable development in one of Dubai’s most ambitious projects.
This strategic partnership is bolstered by the involvement of Tabreed’s leading shareholders, including Mubadala Investment Company, which holds a 42% stake, and Engie, a French company renowned for its low-carbon energy solutions, with a 40% stake. This investor mix positions the joint venture to not only optimize cooling efficiencies but also to advance information-sharing mechanisms and bolster customer protection while ensuring access to environmentally sustainable cooling solutions for prospective residents and businesses in Palm Jebel Ali.
The agreement was officially signed by Tabreed’s Chief Executive Officer, Khalid Al Marzooqi, and Omar Karim, CEO of Dubai Holding Investments. The signing ceremony was attended by key representatives from Tabreed, Dubai Holding, Mubadala, and Engie, highlighting the collaborative spirit that underscores this effort.
Anticipating regulatory approvals, construction of the district cooling network is scheduled to commence in the second quarter of 2025. The first cooling services are projected to be operational by 2027. The project is expected to meet an impressive cooling capacity demand of approximately 250,000 Refrigeration Tons (RTs), addressing the needs of a burgeoning population in this transformative area of Dubai.
Dr. Bakheet Al Katheeri, Chairman of Tabreed and CEO of Mubadala’s UAE Investments Platform, emphasized the strategic importance of this initiative, stating, “Mubadala is internationally recognized for its commitment to responsible investing, underpinned by a robust Environmental, Social, and Governance (ESG) framework. Tabreed plays an integral role in our portfolio, aligning with our goals for sustainability and societal advancement.”
He also noted that the signing of this agreement marks a pivotal moment in Tabreed’s 27-year history, reflecting the company’s unwavering commitment to delivering sustainable, high-efficiency cooling solutions tailored for large-scale developments such as Palm Jebel Ali. Dr. Al Katheeri expressed optimism for the project’s future, anticipating its pivotal role in setting new benchmarks for sustainable urban infrastructure.
Omar Karim, commenting on the agreement, reiterated Dubai Holding’s strategic vision to foster sustainable communities underpinned by high-quality infrastructure. “The integration of district cooling services within the Palm Jebel Ali development not only enhances our commitment to supporting our customers but also aligns perfectly with our objective of facilitating future-ready urban environments,” he remarked.
Khalid Al Marzooqi also highlighted the transformative potential of Palm Jebel Ali, asserting that this project is not just a developmental milestone but a crucial investment in shaping Dubai’s future urban landscape. He emphasized Tabreed’s ambition to deliver reliable and environmentally responsible cooling solutions that will contribute to the well-being of residents and visitors alike.
In conclusion, the joint venture between Tabreed and Dubai Holding for district cooling at Palm Jebel Ali exemplifies a significant move towards sustainable development in the Emirate’s real estate landscape. The project not only anticipates modern urban living requirements but also reflects an ongoing commitment to environmental stewardship. As Dubai continues to evolve into a global hub for both tourism and business, initiatives such as these will be pivotal in supporting its ambitious growth while ensuring the well-being of current and future residents.
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