The National Central Cooling company, also known as Tabreed, reported a 4 per cent increase in its second-quarter profit on the back of higher revenue.
The total profit attributable to equity holders of the parent for the three-month period ending June 30 rose to Dh148 million ($40.29m), the company said in a statement to the Dubai Financial Market, where its shares trade. Revenue during the period jumped 23 per cent year-on-year to Dh511.4m.
“As Tabreed has remained focused on achieving its stated objectives, revenue has continued to grow, along with its portfolio of district cooling networks,” the company said.
“Recent additions include a fourth plant in Downtown Dubai, along with additional connections to our existing concession areas. Capacity has also increased in Bahrain and Oman.”
Tabreed, in which French utility Engie and Mubadala Investment Company own significant stakes, operates 87 district cooling plants across the Gulf, 74 of which are in its home market in the UAE. It operates five plants in Oman, three in Saudi Arabia and one in Bahrain, among others.
Net profit in the six months ending June 30 climbed more than 4 per cent to Dh233.5m as revenue grew 22 per cent to Dh869m.
“Tabreed’s portfolio continues to grow through strategic business development that is measured and carefully considered,” Khalid Al Marzooqi, Tabreed’s chief executive, said.
“In the past six months we have increased cooling capacity in three different countries, most notably with the addition of a fourth district cooling plant in Downtown Dubai, which forms part of Tabreed’s acquisition deal with Emaar in April last year.”
Tabreed bought a majority stake in Emaar Properties' Downtown Dubai district cooling business for Dh2.48 billion. The deal, financed through a corporate loan, gave the company an 80 per cent stake, with Emaar retaining the balance under a long-term partnership deal.
The company also signed an agreement with master developer Miral to provide district cooling services at SeaWorld Abu Dhabi marine life theme park on Yas Island earlier this year.
As part of the deal, Tabreed will connect the new SeaWorld Abu Dhabi development to its existing Yas Island district cooling scheme to deliver a cooling capacity of 7,500 refrigeration tonnes to the project.
It also bought two district cooling units on Saadiyat Island from Aldar Properties in a Dh963m deal last year.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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