Saudi Tabreed Secures 10-Year Contract Extension with KAFD

Riyadh, Saudi Arabia, 20 March 2024

In a signing ceremony held at KAFD headquarters, Saudi Tabreed, the pioneering District Cooling Service Provider (DCSP), sealed a 10-year partnership agreement with the King Abdullah Financial District Development and Management Company (KAFD DMC) for the operation and maintenance of two district cooling plants in Saudi Arabia's prime business and lifestyle destination, KAFD.

The agreement will see the establishment of Saudi Tabreed’s cutting-edge O&M strategies for the two (2) district cooling plants with a total capacity of 100,000 TR (tonnes of refrigeration), serving all of KAFD’s offices, residences and facilities.

In line with KAFD’s commitment to the reduction of energy consumption within the district while ensuring an unsurpassed customer experience, Saudi Tabreed will deliver uninterrupted, centralized cooling for KAFD's large-scale developments, which span 5-asset classes of office spaces, luxury residences and hotels, retail outlets, and entertainment and cultural venues, helping to optimize energy efficiency and minimize environmental impact, while maintaining year-round comfort for KAFD residents, visitors, and the business community.

Commenting on the continued partnership, Suliman Al Khliwi, Managing Director of Saudi Tabreed, expressed his enthusiasm, stating, "We look forward to our continued collaboration with the King Abdullah Financial District., our high-quality O&M services ensure that the KAFD plants are well-kept and capable of meeting the specific cooling demands of the district, minimizing downtime and disruptions. The contract renewal reiterates our position as a reliable provider of innovative district cooling solutions to large-scale projects in the Kingdom. The extended collaboration accelerates our progress towards expanding our portfolio growth to reach a capacity of 1 million TR per day. It also enhances our support of global sustainability efforts, including the United Nations’ Sustainable Development Goals."

Gautam Sashittal, the CEO of KAFD DMC, emphasized the significance of the partnership, stating, "Riyadh stands among the world's hottest cities, with temperatures often surpassing 50 degrees celsius in summer. ACs generate about 4% of global greenhouse gas emissions, twice as much as the entire aviation industry, which will ironically account for as much as a 0.5 degree celsius rise in global temperatures by the end of the century. As a cornerstone initiative of Saudi Vision 2030, KAFD was built to embody the core values of enhancing quality of life and fostering sustainable development. Today, KAFD is the largest LEED-certified mixed-use business district in the world, with over 40 LEED-certifying buildings. This partnership with Saudi Tabreed extends our commitment to these core values and our pursuit of an eco-conscious district. We are confident that the district cooling facilities with Saudi Tabreed's world class operation and maintenance will create a more comfortable and eco-friendly experience for all who live and work in KAFD.

Saudi Tabreed's partnership with KAFD underscores its commitment to KAFD's mission to build a smart, sustainable district that improves the lives of its people. This endeavor not only aims to bolster economic growth and diversification but also seeks to create a dynamic and vibrant atmosphere at the heart of Riyadh, becoming the ultimate business and lifestyle destination in the Kingdom and further solidifying KAFD’s status as a key driver to Riyadh's thriving economy.

This landmark contract not only reinforces Saudi Tabreed's stature as a leading provider and operator of district cooling services within Saudi Arabia but also accentuates its pivotal role in advancing national and regional environmental objectives, delivering innovative, efficient, and sustainable cooling solutions that achieve the objectives of Saudi Vision 2030 and the country’s pledge to reach net-zero greenhouse gas emissions by 2060.