Abu dhabi: The Arab Energy Fund and The State Oil Fund of the Republic of Azerbaijan (SOFAZ) have announced a strategic partnership with CVC DIF to invest in a co-investment vehicle. This collaboration is set to invest alongside DIF VII, which has recently acquired a 50 percent stake in PAL Cooling Holding, a leading district cooling operator in the UAE.
According to Azeri-Press News Agency, this investment reflects a commitment from The Arab Energy Fund and SOFAZ to advance energy-efficient infrastructure solutions across the region. In June 2025, CVC DIF, the infrastructure arm of CVC, and Tabreed, a major player in the district cooling industry, agreed on the acquisition of PAL in a joint venture valued at approximately AED 3.8 billion.
PAL Cooling Holding is the second-largest district cooling provider in the UAE, managing eight long-term concessions with an average duration of 25 years, and serving over 45,000 customers. The company is pivotal in delivering efficient and sustainable cooling services across key developing districts in the UAE.
The collaboration between The Arab Energy Fund, SOFAZ, and CVC DIF unites three institutional investors, combining their capital strength and industry expertise to enhance the platform's operational resilience and strategic growth. Tabreed, maintaining its 50 percent stake in the joint venture with CVC DIF, brings extensive experience as the UAE's first district cooling company. Tabreed is publicly listed on the Dubai Financial Market and operates 99 plants across six countries.
Khalid Al-Ruwaigh, CEO of The Arab Energy Fund, expressed pride in partnering with CVC and SOFAZ on this significant investment. He emphasized the importance of district cooling in achieving energy efficiency and operational excellence, aligning with The Arab Energy Fund's focus on platforms and partnerships that offer long-term value.
SOFAZ Deputy CEO Rovshan Javadov highlighted SOFAZ's interest in the UAE and the broader Gulf region, noting that district cooling is crucial for energy-efficient urban development. Javadov stated that the transaction supports SOFAZ's objective to enhance cross-border economic cooperation and strategic partnerships.
Allard Ruijs, Partner and CIO at CVC DIF, appreciated the partnership with SOFAZ and The Arab Energy Fund. He stressed that this collaboration aligns with CVC's commitment to supporting business development in the UAE, offering investors solid returns and potential for long-term growth.