Tabreed Shareholders Approve First-Ever Semi-Annual Dividend Payout, Marking Historic Milestone

Tabreed Makes History with First-Ever Interim Dividend as Regional Cooling Demand Surges

The National Central Cooling Company "Tabreed" has broken new ground by distributing its first interim dividend in 27 years of operations, signaling robust confidence in the Middle East's booming district cooling market. Shareholders approved a 6.5 fils per share payout worth AED 184.9 million, reflecting record performance driven by unprecedented demand across the UAE and Saudi Arabia.

Record Growth Fuels Historic Payout Decision

This milestone dividend distribution comes on the back of exceptional first-half 2025 results that showcase Tabreed's dominant position in the regional cooling infrastructure market. The company reported revenues of AED 1.11 billion, marking a 3% year-on-year increase, while net profits reached AED 276 million.

The decision to distribute interim dividends for the first time since the company's inception demonstrates management's confidence in sustained cash flow generation and operational stability. This shift in dividend policy aligns with broader trends among Gulf utilities companies that have been rewarding shareholders more aggressively as regional construction and real estate markets continue expanding.

Capacity Expansion Reaches New Heights

Doubling Down on Infrastructure Investment

Tabreed's operational capacity surge tells the story of Middle Eastern urbanization in numbers. The company added a record 41,600 tons of cooling capacity in the first half of 2025 alone—nearly double the entire capacity added throughout 2024. This expansion brought total operational capacity to 1.37 million tons of refrigeration.

Such aggressive capacity building reflects the structural demand shift toward centralized cooling systems, particularly in mega-developments across Dubai, Abu Dhabi, and Saudi Arabia's NEOM and Red Sea projects. District cooling has become essential infrastructure for the region's ambitious urban planning initiatives, offering energy efficiency gains of 30-50% compared to traditional air conditioning systems.

Regional Market Dynamics Drive Performance

UAE and Saudi Arabia Lead Growth

The strong contributions from both UAE and Saudi Arabian markets underscore Tabreed's successful geographic diversification strategy. Saudi Arabia's Vision 2030 infrastructure push has created substantial opportunities for cooling service providers, while the UAE's continued real estate development maintains steady demand growth.

This dual-market strength provides Tabreed with competitive advantages similar to those enjoyed by other regional infrastructure players like Dubai Electricity and Water Authority (DEWA) or Saudi Arabia's ACWA Power, which have leveraged cross-border expansion to reduce single-market dependency.

Investment Implications and Market Position

For investors, Tabreed's inaugural interim dividend represents more than just immediate returns—it signals management's transition toward a more shareholder-friendly capital allocation strategy. The timing coincides with increasing institutional interest in Gulf utility stocks as ESG-focused funds seek exposure to energy-efficient infrastructure.

The company's capacity expansion rate suggests management expects sustained demand growth, potentially driven by climate change concerns and regional governments' push for energy efficiency. As summer temperatures continue rising across the Gulf, centralized cooling systems become increasingly attractive from both cost and environmental perspectives.

Long-term Value Creation Strategy

According to Chairman Dr. Bakhit Al Katheeri, the dividend approval reflects not only strong current performance but also confidence in the company's ability to generate sustainable long-term value. This positioning appears well-founded given the structural nature of cooling demand in hot climates and the regulatory support for energy-efficient solutions across Gulf Cooperation Council countries.

The combination of record operational metrics, geographic diversification, and shareholder-friendly policies positions Tabreed to capitalize on the region's continued urbanization while delivering consistent returns to investors in an increasingly competitive utility landscape.