PIF to buy $250 mln stake in UAE Tabreed subsidiary

Bloomberg agency reported that the Public Investment Fund entered into talks to buy a stake in the Saudi “Tabreed” company, a subsidiary of the Emirati Tabreed, for $ 250 million.

The Emirati company “Tabreed” owns a 28% stake in the Saudi “Tabreed”, in addition to other shareholders such as Vision Invest, Al-Mutlaq Group and an infrastructure fund affiliated with the Islamic Development Bank.

The “Tabreed” unit in Saudi Arabia has agreements to provide cooling services for projects belonging to the Public Investment Fund, such as the Red Sea and Qiddiya projects.

In May 2022, the CEO of Tabreed, Khaled Al Marzouqi, announced the signing of a strategic partnership with IFC to establish an investment office in Singapore.

Al-Marzouqi added, in an interview with Al-Arabiya, that the company’s operations currently amount to 1.210 million tons, and we are working to increase these quantities.

Al-Marzouqi revealed the company’s intention to expand in India, in addition to investing in new projects in the Saudi market. He continued, “The Saudi market is very promising. We are looking forward to investing in new projects.”

He explained that the local expansion plans include building new stations for clients, in addition to studying acquisition deals, especially in new areas.

He stated that Tabreed’s future investments depend on the size of the available opportunities, adding: “The company has its ways to provide the necessary financing.”

Saudi Tabreed provides district cooling systems for urban buildings. The Middle East, where temperatures exceed 43°C during the summer, is the largest market for cooling systems. Saudi Tabreed currently operates a contracted capacity of about 751,000 tons of refrigeration, according to its website.