Emaar Economic City Q2 loss rockets nine-fold

by Souhail Karam Monday, 21 July 2008

Saudi developer Emaar Economic City, an affiliate of Dubai-based Emaar Properties, posted a second-quarter net loss of 40.5 million riyals ($10.8 million), up nearly nine-fold from a year earlier.

Related Stories

Emaar Economic, which is developing the giant King Abdullah Economic City (KAEC) project on Saudi Arabia's Red Sea coast, had posted a net loss of 4.7 million riyals in the three months to June 30 last year, it said in a statement on the bourse website.
"These losses were the result of a normal increase in operating costs in the absence of operating profit, since the King Abdullah Economic City is still under construction," it said.

KAEC, the keystone of a policy of industrial expansion in Saudi Arabia, has attracted 130 billion riyals of investment so far, state news agency SPA reported in June, 30 percent above the initial target.

Emaar Economic City is spearheading the development of the industrial, tourism and real estate complex, which includes a financial centre and luxury residential areas.

The project is the most prominent of a series of "economic cities" the Saudi government has touted to diversify its oil and gas-based economy and find jobs for its swelling youth population. Saudi Arabia is the world's biggest oil exporter.

Shares in Emaar Economic City, unchanged on Monday after the results announcement, are down about 8 percent this year, against a near 18 percent fall in the Saudi benchmark index. (Reuters)



Search Property (2048 listed)



Enter a Development, City, Real Estate Agent or Developer name
Property Type
Added to Site
Price Range
to
Bedrooms
Area (in sqft)
to
to

Quick Links(Residental)