Empower: MEED Assessment

14 May 2013

The recent pick-up in Dubai’s property market is set to offer significant opportunities for Empower

As a company joint-owned by two government entities, Empower benefited from Dubai’s real estate boom from 2004-09. Over this period, Empower’s total cooling capacity increased from 5,400RT to 330,000RT. 

The award of an initial construction contract on its new Business Bay cooling plant in February shows Empower is continuing to benefit from an increase in demand.

With district cooling closely tied to the real estate sector, the recent pick-up in Dubai’s property market is set to offer significant opportunities for Empower.

Consumption of district cooling provided by the company rose 23.3 per cent in July 2012, which was a result of a significant increase in occupancy levels in residential and office areas. The rise in demand contributed to the company’s $51.7m profits in 2012, representing an impressive 17 per cent growth on 2011.

The growth of the UAE’s district cooling market is set to continue over the next five years, with the value of the market expected to rise from the current AED15bn ($4bn) to AED42bn as new schemes are announced.

A sensible business approach from Empower has ensured its finances have remained in good shape. In September 2012, it repaid AED83m of a AED1.2bn loan it took out to finance major projects. Empower’s debt currently stands at about AED580m. 

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