Saudi Developer Emaar Economic City, an affiliate of Dubai's Emaar Properties, has cancelled an agreement worth SR650 million ($173.3 million) with UAE-based City Cool.

City Cool was meant to own and operate two cooling stations for 25 years at the King Abdullah Economic City (KAEC), which the company was to build by investing SR650 million, Emaar said in a statement on the bourse website on Tuesday.

Emaar gave no reason for the cancellation of the deal with City Cool, a subsidiary of Saudi Arabia's Al Rajhi Investment Group, and said it faced no financial obligations resulting from the move.

KAEC has faced delays with some projects. – Reuters