Post by : Raman

The National Central Cooling Company, also known as Tabreed, has made a historic decision. For the first time in its 27-year history, Tabreed announced an interim dividend for its shareholders. On Monday, during the company’s General Assembly meeting, shareholders approved a payment of 6.5 fils per share, totaling AED184.9 million for the first half of 2025.

This decision highlights Tabreed’s strong financial performance and shows its commitment to reward investors as it continues to expand in the Middle East. It is a moment that reflects the company’s growth, stability, and confidence in the future.

What Is Tabreed and Why Does This Matter?

Founded in 1998, Tabreed is a pioneer in providing district cooling solutions in the Middle East. District cooling is a method of air conditioning large buildings and communities from a central plant. This is important because it saves energy and reduces the impact on the environment, especially in very hot places like the UAE and Saudi Arabia.

For many years, Tabreed focused on building and expanding its network, connecting more buildings to its cooling service. But it never declared an interim dividend until now. This makes the 2025 interim dividend a big milestone in its business journey.

The decision shows that Tabreed is not just focused on growth but also cares about sharing its profits with its investors.

Record-Breaking Performance in First Half of 2025

Tabreed’s first half of 2025 has been one of its best ever. The company reported strong financial numbers:

Revenue reached AED 1.11 billion, which is 3% more compared to the same period last year.

Net profit was AED 276 million, showing that the company became more efficient and benefited from higher demand.

The total cooling capacity grew to 1.37 million RT (refrigeration tonnes).

A huge new addition of 41,600 RT of connected capacity was achieved in just six months—almost double the total new connections in the entire year of 2024.

These numbers prove that Tabreed is doing very well in meeting the growing needs of cooling solutions in the region.

Why Is Cooling So Important?

In countries like the UAE and Saudi Arabia, where the weather is extremely hot, cooling is not just a luxury—it is a necessity. As more people live in cities and new buildings are constructed, the need for energy-efficient cooling solutions increases.

Tabreed helps by providing district cooling services, which are better for the environment than having individual air conditioners for each building. It helps save energy, lowers costs, and reduces carbon emissions.

This is why many large projects, residential areas, and commercial centers trust Tabreed to provide their cooling needs.

Strong Markets: UAE and Saudi Arabia

Tabreed’s success in the first half of 2025 was mainly supported by its work in the UAE and Saudi Arabia.

In the UAE, Tabreed continued to lead the market. It provided cooling services to famous projects, big residential areas, and important business hubs.

In Saudi Arabia, the company grew very fast, thanks to big projects like Vision 2030, which is the country’s plan to build smart cities and more sustainable solutions.

These two markets remain the backbone of Tabreed’s growth and show strong demand for its services.

Chairman’s Message

Dr. Bakheet Al Katheeri, Chairman of Tabreed, spoke during the General Assembly. He said, “This interim dividend is a sign of our strong foundation and confidence in the future. We are not just growing fast; we are now rewarding our shareholders while making sure our platform grows sustainably.”

This shows that Tabreed wants to balance expansion with providing returns to the people who invest in the company.

A New Strategy: Shareholders Come First

Before this, Tabreed mainly focused on using profits to build new cooling plants and buy other companies. Now, by giving an interim dividend, it shows a new strategy. The company wants to keep growing but also share its success with investors.

This change is a positive sign. Analysts say it means Tabreed is now as strong as big infrastructure companies around the world.

How Tabreed Plans to Grow Further

Tabreed’s business is built for scalability. This means that its model can easily expand to serve new areas, large communities, and big industrial zones.

As governments in the Middle East work toward sustainability, Tabreed sees even bigger chances to grow. For example:

Saudi Arabia’s Vision 2030 aims for sustainable cities.

The UAE is focusing on green development and smart cities.

Additionally, countries like Oman, Bahrain, and Egypt are also showing interest in district cooling services. Tabreed wants to use this opportunity to enter these markets.

Market Reaction and Investor Confidence

The decision to pay an interim dividend has made investors happy. Distributing AED184.9 million shows that Tabreed makes good profits and manages cash well.

Experts believe this is the start of a new practice. If the company keeps performing well, it might pay regular interim dividends in the future.

This makes Tabreed more attractive to investors who want not just growth but also regular returns.

Tabreed’s Role in Sustainability

Tabreed is also important in supporting the UAE’s green goals. Compared to old-fashioned air conditioning methods, district cooling helps cut down harmful carbon emissions.

By expanding its service and using new technologies, Tabreed keeps its work aligned with both national and global environmental rules.

A New Chapter for Tabreed

The announcement of the first interim dividend marks a new chapter in Tabreed’s journey. It is proof of financial strength, good management, and respect for shareholders.

The company now stands not only as a leader in district cooling but also as a trustworthy company for investors.

With increasing demand for sustainable cooling in the Middle East, Tabreed is ready to grow bigger. It will continue delivering high-quality services while ensuring steady profits and sustainability.

For shareholders, this is a clear message: Tabreed is not just growing fast—it is now a mature, stable company that rewards its investors.

Tabreed’s first interim dividend is a very important development in the Middle East’s business world. It shows how a company can grow and still focus on sharing success with its investors.

In a region where the need for sustainable solutions is growing, Tabreed plays a key role. The future looks bright for the company as it balances growth, environmental responsibility, and investor satisfaction.

This historic move shows that smart decisions today can lead to a stronger, greener, and more profitable tomorrow.

Tabreed, Interim Dividend, UAE Business, Saudi Arabia Growth, District Cooling, Sustainability