Saudi Emaar cuts company losses by 65% in Q3

Saudi Developer Emaar Economic City (EEC),an affiliate of Dubai's Emaar Properties, narrowed its losses by 65 percent in the third quarter.

The firm, which is developing the King Abdullah Economic City (KAEC) project on the Red Sea coast, posted a quarterly loss of 63.5 million riyals ($16.93 million) compared to losses of 181.8 million riyals in the same period last year.

"The reason for the loss is due to the delays of some the projects, which have not generated the targeted revenues," the firm said in a bourse statement.

EEC's operational losses for the third quarter declined by 70.5 percent compared to the same period last year to 59.5 million riyals.

KAEC, which faced delays with some projects, is the most prominent among a series of "economic cities" that are part of Saudi Arabia's plan to diversify the country's oil and gas-based economy and provide jobs for the country's growing population.

Last month, EEC said it had agreed to set up a firm with Saudi Binladin Group to finance, develop and operate a major port on the Red Sea coast which will cost over four billion riyals, and is expected to start operation in 2012.

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