Tabreed, Dubai Holding Investments establish a joint venture agreement

National Central Cooling Company (Tabreed) and Dubai Holding Investments, part of Dubai Holding, have entered a concession agreement to provide district cooling services for Palm Jebel Ali in Dubai.

The agreement establishes a joint venture, with Tabreed holding a 51 per cent stake and Dubai Holding Investments 49 per cent.

This structure is designed to optimise cooling capacity, enhance information-sharing and strengthen customer protection, while ensuring sustainable cooling solutions for one of Dubai’s most transformative developments.

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), the agreement was signed by Khalid Al Marzooqi, CEO of Tabreed, and Omar Karim, CEO of Dubai Holding Investments, in the presence of senior officials from Tabreed, Dubai Holding, Mubadala and ENGIE.

Subject to customary approvals, construction of the district cooling network is expected to commence in Q2 2025, with the first cooling services expected to be delivered by 2027.

Over time, the system will address the need for approximately 250,000 RTs of cooling capacity and require an estimated investment of Dhs1.5 billion.

Following the signing, Dr. Bakheet Al Katheeri, Chairman of Tabreed and Chief Executive Officer of Mubadala’s UAE Investments Platform, said, “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.”

Karim commented, “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.”

In turn, Al Marzooqi 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.”

Meanwhile last month Emirates Central Cooling Systems Corporation (Empower) has signed an agreement with DMCC (Dubai Multi Commodities Centre) to supply the next phase of Uptown Dubai with environmentally friendly district cooling services for a capacity of 24,675 refrigeration tonnes (RT).

The agreement was signed at DMCC’s headquarters in Uptown Tower in the presence of Ahmed bin Sulayem, Executive Chairman and CEO of DMCC, and Ahmad bin Shafar, CEO of Empower.

Uptown Dubai is a world-class smart district, innovatively designed to deliver a one-of-a-kind, mixed-use urban destination of eight planned mixed-use towers alongside a variety of retail, dining, luxury hospitality, and sustainable community options.

Empower’s JLT District Cooling project includes four plants (three of which are currently operational) with a designed total capacity of 152,000 RT, in addition to a comprehensive pipeline network serving the entire area.

These plants are equipped with well-developed infrastructure and advanced smart production and operation systems, ensuring readiness to cater to any new project of any size or use.

Bin Shafar said, “This partnership reflects our commitment to providing innovative and sustainable district cooling solutions that help reduce carbon emissions and support the UAE’s national sustainability goals.”

He added that Empower is currently serving the first phase of the project, including the iconic Uptown Tower, with environmentally friendly district cooling services, delivering a cooling capacity of 3,850 RT in compliance with international standards.

Bin Sulayem stated, “Uptown Dubai is rapidly taking shape as a world-class destination.

Our partnership with Empower is a crucial step in this journey, ensuring the seamless delivery of sustainable cooling solutions that both support our vision for a smart urban community and enhance the quality of life for our residents and visitors.”