Tabreed and CVC DIF Acquire PAL Cooling in AED 3.8B Deal

Malaz Madani

Last updated 30-06-2025

3 min

Tabreed and CVC DIF acquired PAL Cooling Holding from Multiply Group for AED 3,8 billion.

PAL Cooling, founded in 2006, focuses on district cooling, with notable UAE operations.

Expansion plans aim to reach a cooling capacity of 600,000 refrigeration tons.

The acquisition aligns with Abu Dhabi's property growth and UAE's decarbonisation goals.

Multiply Group's sale unlocks liquidity for new ventures.

It looks like there’s yet another shake-up in Abu Dhabi’s business landscape. District cooling giant Tabreed and global infrastructure investor CVC DIF have teamed up to acquire PAL Cooling Holding from the Abu Dhabi-based Multiply Group. This hefty deal, worth around AED 3.8 billion, is still awaiting customary regulatory thumbs-up, but it's likely to turn a few heads in the region.

PAL Cooling, founded back in 2006, isn't exactly new on the block. The firm specialises in district cooling—an efficient and sustainable method to provide air conditioning to densely populated urban areas. It's already a prominent player in the UAE, managing concessions across Abu Dhabi island as well as the vibrant Al Reem Island district. At present, PAL Cooling runs five impressive state-of-the-art plants that deliver around 182,000 refrigeration tons (RT)—and apparently they're just getting warmed up. Their expansion plans include one additional plant currently underway, and three more further down the pipeline, potentially reaching a total of 600,000 RT.

Dr Bakheet Al Katheeri, Chairman of Tabreed, highlighted the strategic significance of the PAL acquisition, commenting that it's a timely move matched to Abu Dhabi’s accelerating property developments. Honestly, I reckon this suits Tabreed down to the ground. Over recent months, especially after their Palm Jebel Ali joint venture, Tabreed seems to be on a pretty unstoppable growth trajectory.

CVC DIF isn't exactly a wallflower either, you know? The infrastructure fund has serious street cred in investing in long-term projects with sustainable outcomes. Gijs Voskuyl, Managing Partner at CVC DIF, mentioned the appeal of PAL Cooling's sustainable, electrified district cooling plants and said they're “delighted” to be joining forces with Tabreed. No surprise there, really—two big players pushing towards the UAE's decarbonisation goals seems like a spot-on match.

Khalid Al Marzooqi, CEO of Tabreed, stressed just how critical this year has been for the company, calling their latest moves "truly pivotal." The PAL acquisition provides them with stable, long-term contracts, securing future growth in Abu Dhabi’s thriving urban centres. On the flip side, Özgür Önder of CVC Middle East also praised the partnership, aligning spotlessly with their focus on sustainable regional investments. Clearly, both firms fancy their chances at achieving solid returns with PAL's existing landmark concessions.

Multiply Group’s boss, Samia Bouazza, explained the group's decision to offload PAL Cooling simply as a natural portfolio shift to unlock liquidity for new ventures—so business-as-usual for Multiply. After all, adapting and monetising key assets isn't exactly rocket science in high-powered finance.

Well… as far as I'm concerned, acquisitions like these highlight Arageek’s constant conviction: the region’s startup and innovation scene really is firing on all cylinders. Big-ticket deals inevitably mean new opportunities, fresh partnerships, and the kind of strategic reshuffles that drive the entire entrepreneurial ecosystem forward.

As for Tabreed and CVC DIF, I've got the feeling this collaboration will be chuffed to bits about snapping up PAL Cooling. Together, they're surely making a serious statement about the importance of sustainability and future-proof infrastructure in the UAE.

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