The district cooling industry in the UAE is growing rapidly as Tabreed and CVC DIF join forces to acquire PAL Cooling Holding from Abu Dhabi’s Multiply Group. This strategic move strengthens their position and reflects rising demand for sustainable cooling solutions across the region. As a result, the market sees increased consolidation, which experts say will improve efficiency and service coverage.
Tabreed already manages a large portfolio of district cooling operations both inside and outside the UAE. Meanwhile, CVC DIF focuses on infrastructure investments as part of the global private markets group CVC. Together, they aim to expand their influence in the UAE district cooling market and meet growing urban cooling needs.
Back in 2020, Tabreed invested Dh2.8 billion to acquire part of Downtown Dubai’s district cooling capacity. This previous deal proved successful and encouraged the company to pursue larger projects. Now, Tabreed and CVC DIF plan to invest approximately Dh3.8 billion to purchase PAL Cooling. The Abu Dhabi-based company operates three long-term concessions on the emirate’s main island and five concessions on Al Reem Island.
Currently, PAL Cooling runs five district cooling plants and networks throughout Abu Dhabi. By the end of 2024, these plants reached a connected capacity of 182,000 refrigeration tons (RT). Moreover, PAL Cooling is actively building an additional plant and planning three more to meet future demand. Once completed, the nine plants and eight concessions will provide around 600,000 RT of cooling capacity.
Dr. Bakheet Al Katheeri, Chairman of Tabreed, described this achievement as a historic milestone. He explained that 2024 has been a significant year due to ventures like the Palm Jebel Ali joint project and rapid growth in Abu Dhabi. According to him, these efforts position Tabreed to meet the UAE’s rising demand for sustainable cooling solutions. This demand largely results from population growth and the nation’s commitment to decarbonisation.
Furthermore, the market for district cooling services in the UAE supports the country’s broader environmental goals. Efficient cooling systems reduce energy consumption and lower greenhouse gas emissions. Therefore, investments in this sector play a vital role in achieving sustainable urban development.
The United Arab Emirates district cooling industry continues to expand quickly. With the acquisition of PAL Cooling, Tabreed and CVC DIF solidify their leadership. Their ongoing investments will help deliver reliable, eco-friendly cooling solutions to the growing urban population.
