This method of cooling is commonly used in large residential projects across the GCC and replaces the need for individual air conditioning units or traditional in-building chillers.  

A key advantage of district cooling is the relatively small space it takes up (thus increasing the total sellable/lettable area of a plot of land) and this also brings aesthetic benefits. Water and energy use is also less than alternative forms of air conditioning, which has both pricing and environmental benefits.  

Given the popularity of district cooling as a means of cooling large developments in the region, together with rapid population growth, it is an opportune time to touch on some of the key issues in a typical district cooling arrangement/concession agreement.   

The GCC's district cooling industry is subject to little law and regulation. This means that the rights and obligations of stakeholders need to be addressed in a clear and integrated contractual framework.