Emaar the Economic City, listed on the Saudi market, Tadawul, announced the signing of a contract to sell industrial land to Sir National Motor Company, the first Saudi brand for the electric car industry. To establish a factory specialized in the manufacture of electric cars.
Emaar the Economic City said in a statement to the Stock Exchange, today, Tuesday, that the value of the deal amounted to 359.036 million riyals, and the value of the deal will be paid in installments over 15 years, explaining that the book value of the asset for sale is 19 million riyals.
As for the expected impact of the deal, Emaar the Economic City said that the company will start recognizing revenue starting from the fourth quarter of 2022, in accordance with the terms and conditions of the contract and applicable financial reporting standards.
Emaar the Economic City stated that the proceeds will be directed mainly towards the development of the project's infrastructure, operational working capital and the fulfillment of certain financial obligations.
It is worth noting that the company incurred losses of 219 million riyals in the third quarter of this year, an increase of 26.6% on an annual basis, while losses increased in the first nine months of the year by about 15% to reach 627 million riyals.
