Ground‐coupled heat exchangers (GCHE) have received significant attention over several decades as a result of increasing the world's energy demand and the need for reducing fossil fuels consumption. Prior studies have demonstrated the effectiveness of utilizing GCHE with refrigeration and heating systems. However, optimizing the performance of GCHE coupled with chillers for heat rejection, especially in extreme hot‐humid climates (where cooling towers are not very effective) is lacking in the literature. In this work, a ground borehole fitted with a coaxial‐tubes heat exchanger (BHE) is numerically simulated. Based on a wide range of data collected for the soil of Dubai, its real in situ thermophysical properties are characterized. The soil's upper layer thickness is relatively small and dry that operates in conduction mode, while the lower one is water‐saturated that works in coupled conduction‐advection mode. The study aims at optimizing the parameters advancing heat rejection into ground considering the actual properties of the soil of Dubai. The results indicate that the more feasible high‐density polyethylene pipes can perform as good as the steel ones. Also, a great finding based on the presented novel design is that insulating the inner pipe can increase the temperature duty by 55%. The proposed design of BHE is relatively inexpensive, more feasible and efficient, which is achieved for the first time based on a deep analysis of Dubai climate and soil. This makes the technology ready to be implemented for industrial applications in Dubai and other regions having a similar climate and soil nature.