Tabreed Expands Portfolio with Record Deals Totaling Over $1.05 Billion

Abu Dhabi, UAE – October 15, 2025: Tabreed, the UAE-based district cooling pioneer, has successfully closed two of its largest-ever transactions, a move that cements its leadership in sustainable urban infrastructure and long-term concession-backed growth.

The company, in partnership with global infrastructure investor CVC DIF, has finalized the acquisition of PAL Cooling Holding from Multiply Group, after securing regulatory approvals. In a separate agreement, Tabreed has also completed a landmark USD 408 million (AED 1.5 billion) district cooling concession with Dubai Holding Investments to serve the upcoming Palm Jebel Ali development.

Together, these two transactions mark a significant leap forward in Tabreed’s expansion strategy, adding scale, stability, and future growth potential to its operations across the UAE.

Strengthening Abu Dhabi’s Cooling Network

The PAL Cooling acquisition, valued at USD 1.05 billion (AED 3.87 billion), adds approximately 600,000 refrigeration tonnes (RT) of connected capacity across eight exclusive concessions on Abu Dhabi’s main island and Al Reem Island, now part of the ADGM free zone.

The portfolio includes five operational plants, one under construction, and three in advanced planning stages. With this transaction, Tabreed’s total connected capacity rises by 13 percent to 1.55 million RT, supported by long-term contracts averaging 25 years with leading real estate developers including Aldar, Modon, and Imkan.

“This acquisition underscores Tabreed’s disciplined investment approach and commitment to long-term value creation,” said Dr. Bakheet Al Katheeri, Chairman of Tabreed. “We are acquiring strategic assets with strong fundamentals, aligned with national development goals and decarbonisation priorities.”

Expanding in Dubai with Palm Jebel Ali

The Palm Jebel Ali concession — a joint venture between Tabreed (51%) and Dubai Holding Investments (49%) — will be developed in phases, delivering 250,000 RT of cooling capacity for one of Dubai’s most anticipated master developments. Tabreed will operate and maintain the assets under the agreement, ensuring efficiency and sustainability across the project lifecycle.

“This is a transformative period for Tabreed,” said Khalid Al Marzooqi, CEO of Tabreed. “By adding long-term, stable contracts with blue-chip partners, we are not only growing our platform but reinforcing our role as a cornerstone of sustainable infrastructure in the UAE.”

Financial Stability and Long-Term Growth

The PAL Cooling portfolio has achieved a 7.5 percent compound annual revenue growth rate and an average EBITDA margin of 60 percent over the past three years, with roughly 60 percent of revenues derived from fixed capacity charges. Both transactions are structured for capital efficiency — the PAL Cooling deal through equity and non-recourse project-level debt, and the Palm Jebel Ali concession through a fully consolidated joint venture.

Earlier this year, Tabreed distributed its first-ever interim dividend, signaling confidence in its strong balance sheet and predictable earnings outlook. The completion of these two landmark deals further solidifies Tabreed’s position as a regional leader in sustainable cooling infrastructure, delivering long-term value for shareholders and partners alike.