Emaar unit in $1.39bn capital boost to fund Saudi port expansion

Emaar Economic City said on Sunday shareholders of its Port Development Company agreed the funding hike

Emaar Economic City said on Sunday shareholders of its Port Development Company subsidiary agreed to an increase in capital to SAR5.21bn ($1.39 billion) to help finance the expansion of the kingdom's first privately-owned port.

Shareholders agreed the capital increase on July 3, bringing Emaar Economic City's current holding of the company to SAR2.6bn, or a 50 percent stake, a statement on the Saudi stock exchange said.

It didn't state what the port company's last capital figure was, nor Emaar Economic City's previous shareholding. The remainder of the shares are owned by Huta Marine Company, the statement said.

The increase in capital is to strengthen the financials of the port company and facilitate funding ahead of the planned second phase of work on King Abdullah Economic City port which includes upping capacity, the statement said.

The port, which began operating on January 6, currently has an annual capacity of 1.3 million twenty-foot equivalent units, which is expected to rise to 4 million TEUs in two years and 7 million in 2018, the chief executive of Emaar Economic City told Reuters in January.

Emaar Economic City, a consortium headed by Dubai's Emaar Properties and Saudi investors, is focused on building the King Abdullah Economic City, a special economic zone up Saudi Arabia's Red Sea coast from Jeddah.

The zone is projected to be the size of Washington DC when completed, hosting as many as 2 million people and helping to diversify the kingdom's economy beyond oil into light industry and shipping.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
A humbler Qatar still wants to punch above its weight

A humbler Qatar still wants to punch above its weight

Qatar has acquired more than $335bn worth of assets around the...

Saudi Arabia spends money to make money

Saudi Arabia spends money to make money

Tour of Asia by Saudi Arabia's King Salman advances drive to...

Soft money: will cash transactions soon be a thing of the past?

Soft money: will cash transactions soon be a thing of the past?

The rapid digitisation of banking in the UAE is enabling robots...

Most Discussed
sponsoredTracking