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King Abdullah Economic City developer’s losses at $185m

By Pramod Kumar
A view of Royal Greens Golf and Country Club at KAEC. Developer Emaar EC's Revenue fell 74 percent year on year to SAR150m KAEC
A view of Royal Greens Golf and Country Club at KAEC. Developer Emaar EC's Revenue fell 74 percent year on year to SAR150m

Emaar the Economic City (Emaar EC), the developer of King Abdullah Economic City near Jeddah, widened its losses in the first half of 2024 on higher finance costs and write-offs.

Loss in the first half of the year reached SAR694 million ($185 million), compared with SAR76 million a year ago.

Revenue fell 74 percent year on year to SAR150 million due to the termination of some leases and the delay in signing new contracts in the commercial and industrial segments.

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The company turned to a loss of SAR342 million in the second quarter versus a profit over the same period of SAR95 million a year earlier.

Revenues were down 82 percent year on year to SAR76 million.

In April, the developer rescheduled a SAR1 billion loan with the Public Investment Fund, the Saudi sovereign fund, to provide time to evaluate repayment alternatives.

The facility will mature on November 19, 2024, instead of August 19, 2024.

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