RIYADH: The company behind King Abdullah Economic City, Saudi master developer Emaar The Economic City, has revealed an SR8.7 billion ($2.32 billion) capital optimisation plan to reorganise its financial structure.
According to a press release, the board approved restructuring SR3.8 billion in bank debts, converting SR4 billion in debt owed to the Public Investment Fund into equity, and introducing an SR1 billion convertible shareholder facility from PIF.
Along with reducing capital, the plan aims to stabilise EEC’s financial position and pave the way for long-term value creation by offsetting accumulated losses.
This occurs as EEC sharpens its focus on important industries, such as real estate, tourism, and logistics and industry. Designated as a Special Economic Zone, KAEC is expected to draw more enterprises and inhabitants, thereby boosting Saudi Arabia’s Vision 2030 goals.
The implementation of the COP, which forms the basis of EEC’s Board-approved strategy, will allow the company to take advantage of opportunities to align its direction with Saudi Vision 2030, according to EEC Chairman Fahad Al-Saif.
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