Emaar, The Economic City swings to $115m profit in 2023
JEDDAH, March 31, 2024
Emaar, The Economic City, the master developer of the largest privately-funded new city in Saudi Arabia - King Abdullah Economic City - has reported a gross profit of SAR432 million ($115 million) for FY 2023 compared to a gross loss of SAR232 million ($62 million) the previous year.
Announcing its annual financial results for the period ended December 31, 2023, Emaar, The Economic City said its revenue witnessed solid growth surging to hit SAR1.03 billion ($274 million), thus registering a 184% increase over the previous year's results of SAR363 million ($97 million).
This jump in revenue was mainly driven by the new sale of industrial and commercial land as well as residential properties, which contributed SAR302 million to the gross profit, it stated.
Additionally, the company recognised revenues from progress on existing projects and re-assessments of project life cycle cost estimates also contributed to increase in revenue during the year.
On its profit growth, EEC said projects’ gross profit increased by SAR605 million from a gross loss of SAR8 million in the prior year, to a gross profit of SAR597 million during 2023, driven mainly by new sale of industrial and commercial land as well as residential properties, which contributed SAR302 million to the gross profit.
Also there was a sharp decline in the net loss for the year ended 31 December 2023 which stood at SAR253 million, compared to the net loss of SAR1.15 million the previous year.-TradeArabia News Service
