In a strategic move to enhance its market presence, National Central Cooling Co. (Tabreed) has announced the appointment of Arqaam Securities as its liquidity provider on the Dubai Financial Market (DFM). This initiative is poised to improve trading liquidity, boost investor confidence, and ultimately benefit shareholders.

Tabreed, a leading utility company in the GCC, is renowned for its energy-efficient district cooling solutions. With a robust portfolio of 83 plants across the GCC, the company has been a pivotal player in the region's infrastructure since its inception in 1998. As part of its ongoing efforts to strengthen trading dynamics, Tabreed's partnership with Arqaam Securities marks a significant step.

Arqaam Securities, a leading regional financial institution, will commence liquidity provisioning by entering two-way quotes into the market trading system. This mechanism is designed to narrow the bid-ask spread, reduce volatility, and enhance investor confidence, all while adhering to the regulations set by the DFM and the UAE Securities and Commodities Authority (SCA).

Tabreed's CEO, Khalid Al Marzooqi, emphasized that the appointment is primarily about benefiting shareholders. By enhancing access to Tabreed's shares, the company aims to provide greater flexibility for investors in dynamic markets, reinforcing its focus on sustainable, long-term value creation.

Veselin Tilev, Head of Market Making at Arqaam, expressed confidence in contributing to improved liquidity and facilitating active, orderly trading in Tabreed’s shares on the DFM. With a proven track record and deep understanding of local market dynamics, Arqaam is well-positioned to support Tabreed's goals.

For investors, the move signals Tabreed's commitment to creating a more stable and liquid market environment. Although the company's future prospects appear neutral, the enhanced liquidity could make Tabreed an attractive option for investors seeking stability and long-term growth potential.

Given the current market conditions and the strategic steps taken by Tabreed, it is advisable for investors to hold their positions. The partnership with Arqaam is expected to yield positive results, but monitoring market reactions and further developments is crucial.