PIF acquires 30% stake in Saudi Tabreed to promote sustainable cooling in the Kingdom

- Business - February 13, 2023
PIF acquires 30% stake in Saudi Tabreed to promote sustainable cooling in the Kingdom
PIF acquires 30% stake in Saudi Tabreed to promote sustainable cooling in the Kingdom

RIYADH: The Public Investment Fund announced Sunday that it has acquired a 30 percent stake in Saudi Tabreed District Cooling Co., a leading provider of sustainable district cooling systems for some of Saudi Arabia’s largest projects.

Streets in illuminated cityscape, Riyadh, Saudi Arabia

Saudi Tabreed offers highly efficient solutions that reduce power consumption and operating and maintenance costs and promote alternatives to traditional air conditioning systems.

District cooling is considered one of the most energy-efficient solutions because it conserves natural resources and contributes significantly to the reduction of greenhouse gases.

According to a PIF statement, the refrigeration provider currently manages 779,000 tonnes of refrigeration through contracts with major companies in the Kingdom, including Saudi Arabian Oil Co.’s district cooling plant in Dhahran, the Jabal Omar plant in Mecca, the district cooling system at King Khalid International Airport in Riyadh and a central facility at AMAAD Business Park in Dhahran.

Saudi Tabreed also serves the Red Sea Project, an integral part of Saudi Arabia’s Vision 2030.

“Our investment in Saudi Tabreed will support the achievement of PIF’s economic diversification goals, especially given the expected growth of the district cooling market in Saudi Arabia,” said Yazeed A. Al-Humaid, Deputy Governor and Head of MENA Investments at PIF.

“The investment is also fully in line with PIF’s strategy to enable promising sectors in the country and supports Saudi Arabia’s transition to sustainable and more efficient energy sources,” he added.

“PIF’s investment further strengthens our position as the market leader in Saudi Arabia. With added credibility and stronger financial performance, belonging to the PIF portfolio significantly expands our ability to support the country’s energy transition and sustainability goals,” said Mohammed Abunayyan, Chairman of the Board of Saudi Tabreed.

“We are determined to work together to advance our mission to improve Saudi Arabia’s urban development through innovative, advanced and highly efficient district cooling solutions.”

PIF has a strong track record of investing in the low-carbon sector, including electric vehicles and solar energy projects, as part of its commitment to developing 70 percent of the Kingdom’s renewable energy by 2030.

The fund has made significant investments in renewable energy companies such as ACWA Power and the Sudair and Al Shuaibah Solar Energy projects, as well as in the development of electric vehicles through investments in Lucid Motors, Ceer, and E1.

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