Emaar, The Economic City, also known as Emaar EC, may soon see its capital swell from SAR8.5 billion ($2.26 billion) to SAR11.33 billion ($3.01 billion), local reports have said.
The master developer of King Abdullah Economic City or KAEC has seen its board of directors recommend a 33 percent increase in its capital, said the local reports
Emaar EC will now put the approval plan to shareholders’ vote during the extraordinary general meeting to be held on September 12.
The capital hike will take place through settlement of the SAR2.83 billion ($755 million) it owes to the Public Investment Fund.
The move is aimed at boosting the company’s liquidity and credit position, said the local reports.
It is expected to provide greater solvency in relation to its financial obligations, and help improve the company’s ability to achieve its growth goals.
KAEC is said to be the fastest-growing developing market in the world today, with direct access to King Abdullah Port and the Industrial Valley manufacturing and logistics hub.
With a total development area of 173 sq km, KAEC is located along the coast of the Red Sea, around 100 km north of Jeddah, the commercial hub of Saudi Arabia.
Emaar EC has already invested SAR18 billion ($4.8 billion) in to the project.