TAEF and SOFAZ invest alongside CVC DIF in UAE district cooling firm

The Arab Energy Fund (TAEF) and Azerbaijan’s State Oil Fund (SOFAZ) have agreed to invest alongside infrastructure investor CVC DIF in PAL Cooling Holding, one of the United Arab Emirates’ largest district cooling operators, the parties said.

TAEF and SOFAZ are participating through a co-investment vehicle that invests alongside DIF VII, CVC DIF’s flagship infrastructure fund, which acquired a 50% stake in PAL in 2025. Financial terms of TAEF’s and SOFAZ’s investment were not disclosed.

PAL Cooling Holding is the UAE’s second-largest district cooling provider, operating eight long-term concessions with an average remaining duration of about 25 years and serving more than 45,000 customers.

The investment deepens SOFAZ’s presence in the Gulf region and reflects growing interest by institutional investors in energy-efficient urban infrastructure, the parties said.