Saudi's Emaar The Economic City's Q3 revenue drops 54%
The developer's revenues for the first nine months of 2017 were valued at $216m, a 43% decline compared to 9M 2016 revenues, worth $373m
Saudi Arabia's Emaar The Economic City (Emaar EC) reported $71.7m (SAR269m) as total revenues for Q3 2017, a 54.5% decline against corresponding figures for 2016, worth $157.3m (SAR590m).
Meanwhile, revenues for the nine months (9M) of 2017 were valued at $216m (SAR810m), 43% lower than last year's 9M revenue, worth $373.3m (SAR1.4bn).
Emaar EC's total comprehensive income for 9M 2017 amounted to $12m (SAR45.6m), an 84.6% decline against 9M 2016's corresponding figures of $78.8m (SAR295.4m).
Change in infrastructure cost estimates of industrial land was cited as a factor for the income reduction.
Compensation received during 9M 2016, based on a court decision regarding the cancellation of a development lease agreement by a customer, also influenced income figures.
In a filing to the Saudi bourse, Emaar EC said the decrease in residential sales it noted during 9M 2017 was "partially offset by the increase in industrial land sales, as compared to corresponding period".
Emaar EC leads the master-planning and development of King Abdullah Economic City (KAEC), a project being built in the north of Jeddah.
KAEC comprises six components, which include a sea port, an industrial district, an educational zone, resorts, a residential area, and a central business district featuring commercial, mixed-use, and retail outlets, as well as a financial island.
Based on initial forecasts, KAEC will create up to one million employment opportunities in the various industries and service-oriented companies it will host, and will be home to two million residents.