Emaar's economic losses increased by 134.1% to 1.25 billion riyals in 2020, for about 533 million riyals in 2019.
According to Arab Net, the company's revenues declined by 42% in 2020 to 547 million riyals, compared to SR 947 million in 2019.
Emaar said the decline in revenues and gross profit over 2020 compared with 2019 due to the overall slowdown in economic activities in the real estate sector as well as the spread of Corona unusual virus.
The group had recorded a decline in the value of available properties for sale, rent contracts and some operational assets after revaluation at 316 million riyals during 2020, affecting the results of the group.
Because of the prevailing economic and delays in project completion, the Department re-evaluated the total cost estimates of residential and industrial projects and based on cost estimates, resulting in an increase in total loss by SR 307 million compared to 2019.
Emaar Economic City said: The slowdown in development activity as a result of macroeconomic conditions and the impact of the new Corona virus pandemic Kovid_19 to recognize the financial costs of debt in the statement of income for the current period instead, resulting in an increase in net loss for the year.
The accumulated losses
In the context, Emaar Economic City has announced its accumulated losses of 2.668 billion riyals equivalent to 31.3% of the capital.
Emaar said, as well as the continuing challenges in the real estate market faced by the company, King Abdullah Economic City is an integrated economic city where the company does not invest in the development of the city's infrastructure such as city roads, bridges, sub-stations, sewage, telephony and communication infrastructure So, but also bear the cost of running and maintaining the city infrastructure.
She also invested in the city's necessities, such as education, health care, hospitality and entertainment to meet the growing needs of the city's residents, and leads to a great deal of consumption, as well as preliminary operating losses related to these assets, which affect the company's short term profit.
Suggested that these investments will contribute to achieving the strategic objectives of King Abdullah Economic City as a major assistant factor for social and economic transformation in Saudi Arabia.
Emaar al-Madinah said it had concluded an agreement with the Public Investment Fund to convert part of the Finance Ministry loan of 2.83 billion riyals to ownership rights being completed and completed.
