The Public Investment Fund (PIF) has announced its acquisition of a 30% stake in Saudi Tabreed, a leading district cooling service provider. This move further expands PIF's presence in the cooling services market and strengthens its position as a top player in this sector.
In Riyadh, Saudi Arabia - February 12, 2023, The Public Investment Fund completed its acquisition of a 30% stake in Saudi Tabreed District Cooling Company today, supporting the company's efforts to grow and develop the local utilities and low-carbon sectors.
Saudi Tabreed offers highly efficient district cooling solutions that help reduce energy costs and maintenance expenses, as well as encourage alternatives to traditional air conditioning systems. District cooling is recognized as one of the most energy-efficient ways to cool a space, due to its ability to conserve natural resources. This makes it a major contributor to greenhouse gas reduction.
Saudi Tabreed manages a large amount of refrigeration contracts in Saudi Arabia. These include plants run by major companies in the Dhahran district, the Jabal Omar district cooling plant in the city of Makkah, cooling schemes at King Khalid International Airport in Riyadh, and a centralized cooling plant at the AMAAD Business Park in Dhahran. Saudi Tabreed also services THE RED SEA project, which is a key part of Saudi Arabia’s Vision 2030.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “Our investment in Saudi Tabreed will support the achievement of PIF’s economic diversification goals, especially in light of the anticipated growth in Saudi Arabia’s district cooling market. The investment is also fully aligned with PIF’s strategy to enable promising sectors in the country, and supports Saudi Arabia’s transition to sustainable and more efficient sources of energy.”
Mohammed Abunayyan, Saudi Tabreed Chairman of the Board, commented: “PIF’s investment further enhances our position as a market leader in Saudi Arabia. With added credibility and stronger financial performance, being part of the PIF portfolio significantly expands our ability to support the country’s energy transition and sustainability targets. We are committed to working together as we move forward in our mission to enhance 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 a commitment to develop 70% of Saudi Arabia’s renewable energy by 2030. PIF has major investments in renewable energy companies such as ACWA Power and the Sudair and Al Shuaibah Solar Energy projects, and in the development of electric vehicles through investments in Lucid Motors, Ceer and E1.
The wealth fund, chaired by Crown Prince Mohammed bin Salman, seeks to limit the Kingdom's full reliance on oil by diversifying income sources. The fund aims to grow its assets to more than $1 trillion by 2025, with plans to invest $40 billion locally by then, it said in October. It currently controls more than $600 billion of assets around the world, including most of the Kingdom's big companies like stc and Saudi National Bank.
In October, the fund said it plans to invest $24 billion (SAR 90 billion) in countries in the Middle East and North Africa (MENA) region by setting up companies to invest in Bahrain, Iraq, Jordan, Oman, and Sudan.
To Learn more about Public Invest Fund at: www.pif.gov.sa