According to the company’s chief official, Tabreed is confident in its dependable operations and great performance and will look into new markets to maintain its rapid expansion until 2023 and beyond. Bader Saeed Al Lamki, chief executive officer of Tabreed, said the UAE is the primary market for the company and it will continue to play key role in strengthening the economy by providing efficient district cooling services across the country.
“Tabreed will be celebrating 25 years in business in 2023, and in that time the company has grown to be the world leader in district cooling. We have 86 plants in our portfolio – a number which will increase as projects are completed (for instance, SeaWorld Abu Dhabi, where we have built a bespoke facility, which will go live in early 2023), and we recently commenced operations in India and Egypt,” he said.
Tabreed is one of the UAE’s strongest growth companies and listed on the Dubai Financial Market. The company, which was founded in 1998, owns and operates 86 plants in its portfolio across the GCC, including 75 in the UAE, three in the Kingdom of Saudi Arabia, seven in Oman and one in the Kingdom of Bahrain, in addition to other international projects and operations.
In India, Al Lamki said Tabreed has joined forces with the International Finance Corporation (IFC), with a mandate to invest in projects valued up to $400 million over the next four years, targeting industrial, commercial and retail developments.
With reference to Egyptian foray, he said the company entered the North African country in early 2022. “Last year, we entered the market in Egypt, quickly signing two major new deals. We have an office in Cairo, with a growing team of highly experienced and motivated specialists, and we’re looking forward to expanding our presence there and, potentially, in other countries and new territories,” he said.
Al Lamki said Tabreed’s primary focus will remain on its domestic market in the UAE as it is an integral and essential part of the country’s infrastructure.
“The UAE is our home, and even though we have real momentum with overseas projects, we will never neglect this country or the region that we’re part of. Demand here for cooling is only going to increase over time and Tabreed has proved to be an essential part of the UAE’s infrastructure, an enabler of sustainable progress,” he said.
“As this becomes more apparent to more authorities, decision makers and planners, district cooling is bound to experience more uptake, so we fully expect to make expand in the domestic market. Our presence is already extremely strong, and our reputation as a central pillar of society will undoubtedly grow,” he said.
Al Lamki said Tabreed showed resilient performance last year and it will sustain excellent results in 2023. “We recently released our third quarter financial results for 2022, and they show a company going from strength-to-strength. Capacity, revenue and profits are up, our health-and-safety record remains second-to-none.
“In 2022, we practically doubled the size of our operations in Oman, added capacity in Bahrain and the UAE and as already mentioned, entered a new market with Egypt,” he said. In addition, he said Tabreed played an important role in the development of district cooling industry and support efforts to improve global environment.
“In 2022, we were a main sponsor of the first World Utilities Congress, we played an active role as part of the UAE’s delegation to COP27. And, in September, we aligned with recent changes to UAE commercial law by increasing our foreign ownership limit to 100 per cent,” he said.
In other words, Al Lamki said Tabreed has had another excellent year. “We continue to post record profits and Fitch recognised this by updating our rating outlook to ‘Stable’, which shows our shareholders that this is a company that’s safe to invest in,” he added.
Al Lamki expressed his confidence that Tabreed will continue to perform in 2023 and sustain an upward trend by exploring new markets and maximising operational efficiency in line with best international practices.
“We intend to build on past success and continue on our path of sustainable growth and development – we have a long-term plan and we’re sticking with it. So, this means evaluating collaborations and opportunities in existing and potential new markets, and maximising our operational efficiency to minimise costs, both financially and environmentally,” he said.
“We will be present once again at World Utilities Congress and expect to be involved with COP28 as the UAE becomes the host nation. This exposure puts the company in the spotlight and allows us to promote our undisputed green credentials, while adding to the economic stability of the countries in which we operate,” he said.
“Everyone at Tabreed, including our stakeholders and investors, has genuine reason for optimism as we look to the near future, and I’m looking forward to steering this company through another year of meaningful progress,” he said.
Al Lamki said no business or industry is entirely immune from the pressures affecting the world at large. “But for companies such as Tabreed, where there is a constant and uninterrupted demand for the services we provide, there is a degree of strength and security.
“Having said that, when developers suffer so too do the businesses that support them, so as budgets and timelines tighten, we must be prepared to adapt. We must also be prepared for rapid expansion as legislators and planners become more aware of the environmental benefits of district cooling, so managing growth can be a very real challenge, but it’s a nice problem to have,” he said.
In reply to a question, Al Lamki said Tabreed believes in environment-friendly practices and the company will continue to improve its operational efficiency. “Definitely. While it’s true that our operations do have their own carbon footprint, just consider the benefits from large-scale energy efficiency, which is a central tenet for district cooling. Compared to conventional methods, district cooling is approximately 50 per cent more efficient, which means much lower demand on the grid. Just take Tabreed as one example – last year our operations saved 2.33 billion kilowatt hours, preventing the release of 1.39 million metric tonnnes of carbon emissions. That works out the same as removing more than 300,000 vehicles from our roads, every year,” he said.
“Sustainability is a pillar of our company, and we leave no stone unturned when it comes to eliminating waste and our pursuit of operational excellence. We’re an ESG-centric organisation and believe in true transparency, so even a casual observer can instantly see that we’re a positive part of society with a strong environmental conscience,” he said.
To a question about acquisition or a joint venture agreement in 2023, Al Lamki said there is always plenty of rumour and conjecture about these matters but, since its formation in 1998, Tabreed has been a publicly listed company on the Dubai Financial Market.
“And that means we are not able to talk about anything that is yet to be made public. What I can say is that Tabreed makes no secret of the fact that it is open to doing business with organisations that share the company’s core principles. Collaborations and partnerships help enable progress, and progress is a byword for Tabreed. So, watch this space,” Al Lamki concluded.
One of the main forces advancing individuals, communities, and environments worldwide toward a more sustainable future is Tabreed. The Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates Towers, Yas Island, Al Maryah Island, The Dubai Mall, Dubai Opera, Dubai Metro, Bahrain Financial Harbor, and the Jabal Omar Development in the Holy City of Makkah are just a few iconic developments that benefit from its vital and sustainable district cooling services.
