Losses narrow for developer of King Abdullah Economic City

KAEC

• Revenue up 184%
• $67m losses in 2023

Emaar the Economic City, the developer of King Abdullah Economic City near Jeddah, narrowed its losses in 2023 as revenue nearly tripled.

The developer cut losses to SAR253 million ($67 million) last year from SAR1.2 billion in 2022. Revenue was up 184 percent year on year to more than SAR1 billion in 2023, driven by sales of industrial and commercial land and residential properties

The company, known as Emaar EC, also recognised revenues from progress on existing projects and reassessments of project life-cycle cost estimates.

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Emaar EC reported a gross profit of SAR432 million in 2023 compared to a gross loss of SAR232 million in the previous year.

There was a SAR142 million decrease in general and administrative expenses and a SAR44 million fall in losses, due to a lower expected credit loss provision.

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However, the developer reported a SAR194 million increase in financial charges due to the Saudi Arabian Interbank Offered Rate.

This daily reference rate, published by the kingdom’s Central Bank, is based on the average interest rates at which Saudi banks offer to lend unsecured funds to other banks in the Saudi riyal wholesale money market.

In September 2023, Californian electric vehicle maker Lucid Group opened its first international manufacturing plant in the city’s newly launched special economic zone.