Emaar's Saudi unit sees 129% rise in net profit

An Emaar Properties unit in charge of developing the King Abdullah Economic City (KAEC) in Saudi Arabia on Saturday said its net profit for 2012 more than doubled those in the previous year.

Emaar The Economic City Company said in a statement on the Saudi bourse that net income for the year totalled SR189.20m, compared to SR82.55m in 2011, an increase of 129 percent.

Operating profit for 2012 was SR219.40m, compared to SR124.78m the previous year, an increase of 76 percent, the company added.

It said the reason for the increase in profit was due to improved sales activity, primarily attributable to an increase in revenue from residential units and industrial plot sales.

The real estate company also said the net increase in total expenses seen in 2012 was in line with the rise in operations and sales.

Emaar Economic City leads the master-planning and development of the 168 million sq m King Abdullah Economic City, a project being built in the north of Jeddah.