Emaar says Saudi deal still conditional
Dubai, June 16, 2009
Dubai developer Emaar Properties said on Tuesday a deal signed with Saudi Arabia's Kingdom Holding was still conditional and would focus solely on managing the development process.
In a statment on the Dubai bourse website, Emaar said it was too early to envisage the level of income from the project as it was still in feasibility study stage.
Emaar on Sunday denied it was investing in a development by Saudi Arabia's Kingdom Holding that will feature what would be the world's tallest tower, but said it was in a deal to offer management services against a fee.
The United Arab Emirates' bourse regulator had asked Emaar on Monday to give detailed clarification.
"The agreement currently signed by Emaar is conditional upon a number of other additional agreemnents to be finalised between Emaar and the company," Emaar said.
Emaar shares surged 7.18 percent on Sunday, the day after Kingdom Holding Co said it had appointed the Dubai-based firm as developer of the project, with a total investment of at least 100 billion riyals ($26.7 billion). The share tumbled 5.74 percent on Monday. - Reuters