Saudi Tabreed District Cooling Company Market Research Report

Background

Overview

Saudi Tabreed District Cooling Company, established in 2005, is a leading provider of sustainable district cooling solutions in Saudi Arabia. As a subsidiary of the UAE-based National Central Cooling Company (Tabreed), Saudi Tabreed specializes in the development, investment, and maintenance of district cooling systems, offering energy-efficient and environmentally friendly cooling services to major urban developments across the Kingdom.

Mission and Vision

Saudi Tabreed's mission is to enhance urban development in Saudi Arabia by providing innovative, advanced, and highly efficient district cooling solutions. The company's vision aligns with Saudi Arabia's Vision 2030, focusing on economic diversification and sustainable energy practices.

Primary Area of Focus

The company focuses on delivering centralized cooling services to large-scale residential, commercial, and industrial projects, contributing to energy conservation and reduced carbon emissions.

Industry Significance

District cooling is recognized as one of the most energy-efficient cooling solutions, significantly reducing power consumption and greenhouse gas emissions. Saudi Tabreed plays a pivotal role in advancing this technology within Saudi Arabia, supporting the nation's sustainability and urban development goals.

Key Strategic Focus

Core Objectives

• Sustainable Development: Implementing energy-efficient cooling solutions to support environmental sustainability.

• Market Expansion: Increasing market share by securing long-term contracts with major developments.

• Operational Excellence: Ensuring reliable and efficient cooling services through advanced technologies and skilled personnel.

Specific Areas of Specialization

• District Cooling Systems: Designing, building, and operating centralized cooling plants.

• Energy Efficiency Optimization: Implementing solutions that reduce energy consumption and operational costs.

• Sustainability Initiatives: Contributing to the reduction of carbon emissions through eco-friendly cooling technologies.

Key Technologies Utilized

• Centralized Cooling Plants: Utilizing large-scale facilities to provide cooling to multiple buildings.

• Energy Management Systems: Employing advanced monitoring and control systems to optimize energy use.

• Sustainable Refrigerants: Adopting environmentally friendly refrigerants to minimize environmental impact.

Primary Markets Targeted

• Urban Developments: Supplying cooling services to large-scale residential and commercial projects.

• Industrial Facilities: Providing efficient cooling solutions for industrial operations.

• Government Projects: Partnering with public sector initiatives to enhance energy efficiency in government buildings.

Financials and Funding

Funding History

Saudi Tabreed has secured significant investments to support its growth and expansion:

• Public Investment Fund (PIF) Acquisition: In February 2023, PIF acquired a 30% stake in Saudi Tabreed, enhancing the company's financial position and credibility.

Total Funds Raised

The exact total funds raised by Saudi Tabreed are not publicly disclosed.

Notable Investors

• Public Investment Fund (PIF): Acquired a 30% stake in February 2023.

• Tabreed UAE: Parent company and significant shareholder.

• Vision International Investment Co.: Shareholder in Saudi Tabreed.

• IDB Infrastructure Fund (II) "Mena Utilities": Investor in Saudi Tabreed.

• Al Mutlaq Group: Shareholder in Saudi Tabreed.

Intended Utilization of Capital

The capital raised is utilized for:

• Expansion Projects: Developing new district cooling plants to serve major developments.

• Technological Advancements: Investing in advanced cooling technologies and energy management systems.

• Operational Enhancements: Improving maintenance and operational capabilities to ensure service reliability.

Pipeline Development

Key Pipeline Candidates

• The Red Sea Project: Saudi Tabreed is the exclusive cooling services provider for this flagship mega-project under Saudi Arabia's Vision 2030 plan.

• King Abdullah Financial District (KAFD): Secured a 10-year contract extension in March 2024 to operate and maintain two district cooling plants with a total capacity of 100,000 TR.

• King Khalid International Airport: Providing district cooling services to the airport's terminals.

Stages of Development

• Design and Construction: Planning and building new district cooling plants for upcoming projects.

• Operation and Maintenance: Managing existing cooling plants to ensure optimal performance.

Target Conditions

• Urban Developments: Supplying cooling services to large-scale residential and commercial projects.

• Industrial Facilities: Providing efficient cooling solutions for industrial operations.

• Government Projects: Partnering with public sector initiatives to enhance energy efficiency in government buildings.

Relevant Timelines

• The Red Sea Project: Ongoing development with phased commissioning of cooling services.

• KAFD Contract Extension: 10-year agreement signed in March 2024.

Technological Platform and Innovation

Proprietary Technologies

• Centralized Cooling Plants: Utilizing large-scale facilities to provide cooling to multiple buildings.

• Energy Management Systems: Employing advanced monitoring and control systems to optimize energy use.

• Sustainable Refrigerants: Adopting environmentally friendly refrigerants to minimize environmental impact.

Significant Scientific Methods

• Energy Efficiency Optimization: Implementing solutions that reduce energy consumption and operational costs.

• Sustainability Initiatives: Contributing to the reduction of carbon emissions through eco-friendly cooling technologies.

Leadership Team

Key Executives

• Suliman Al Khliwi: Managing Director of Saudi Tabreed.

• Mohammed Abunayyan: Chairman of Saudi Tabreed.

• Yazeed A. Al-Humied: Deputy Governor and Head of MENA Investments at PIF.

Professional Backgrounds

• Suliman Al Khliwi: Experienced in managing large-scale infrastructure projects, focusing on energy efficiency and sustainability.

• Mohammed Abunayyan: Seasoned leader with expertise in strategic investments and corporate governance.

• Yazeed A. Al-Humied: Specializes in MENA investments, with a focus on utilities and low-carbon sectors.

Key Contributions

• Suliman Al Khliwi: Led the 10-year contract extension with KAFD, enhancing Saudi Tabreed's market presence.

• Mohammed Abunayyan: Oversaw the strategic partnership with PIF, strengthening the company's financial position.

• Yazeed A. Al-Humied: Facilitated PIF's investment in Saudi Tabreed, aligning with the fund's economic diversification goals.

Competitor Profile

Market Insights and Dynamics

• Market Size and Growth Potential: The Saudi district cooling market is poised for significant growth, with increasing urbanization and a focus on sustainable development driving demand.

• Industry Trends: A shift towards energy-efficient and environmentally friendly cooling solutions is evident, with district cooling gaining prominence as a preferred method.

Competitor Analysis

• Tabreed UAE: Parent company of Saudi Tabreed, operating 91 district cooling plants across the GCC, including Saudi Arabia.

• PAL Cooling Holding: A district cooling business in Abu Dhabi, recently acquired by Tabreed and CVC DIF, expanding their regional footprint.

Strategic Collaborations and Partnerships

• Public Investment Fund (PIF): Acquired a 30% stake in Saudi Tabreed, enhancing the company's financial position and credibility.

• King Abdullah Financial District (KAFD): Secured a 10-year contract extension to operate and maintain district cooling plants, strengthening market presence.

Operational Insights