Saudi Arabia’s Emaar the Economic City (EMAAR EC) has posted losses of SAR 2.668 billion ($711 million) for the full year 2020, which is equivalent to 31 percent of capital.

According to the company, factors causing the losses include the prevailing economic environment, the COVID-19 pandemic and delays in the completion of construction projects.

The group said it had also recorded an impairment of SAR 316 million on properties available for sales or lease, and certain operating assets during the current year, which affected results, according to a statement to the Saudi Stock Exchange (Tadawul).

The increase in loss was partially offset by an increase in the results of the hospitality sector, improvement in the results of the Port Development Company and reduction in general administrative

expenses during the current year, the statement said.

EMAAR EC announced in September that it was entering into a share subscription agreement with a number of entities, including Saudi Arabia’s Public Investment Fund (PIF).

The company yesterday (Tuesday) told Tadawul that it had partially executed the novation of a loan of SAR 2.833 billion from the Ministry of Finance (MoF) to the PIF.

(Writing by Imogen Lillywhite; editing by Seban Scaria)


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