Weak demand hits projects: Saudi Emaar
Jeddah, October 21, 2009
Saudi property developer Emaar Economic City (EEC) said on Wednesday weakening demand on housing has delayed the execution of some of its projects.
The firm, which is developing the King Abdullah Economic City (KAEC) project on the Red Sea coast, posted on Tuesday a quarterly loss of 63.5 million riyals ($16.9 million) compared to losses of 181.8 million riyals in the same period last year.
In a statement posted on the Saudi bourse's website on Wednesday, EEC said it has not met its revenue targets which did not help cover costs during the third quarter.
'This loss is due to the decline that occurred in the execution of some projects because of the conditions affecting the real estate market with the decline in demand for housing units compared to last year,' it said.
King Abdullah Economic City is the most prominent among a series of 'economic cities' that are part of Saudi Arabia's plan to diversify the country's oil and gas-based economy and provide jobs for the country's growing population. - Reuters