DUBAI: Emaar the Economic City said losses widened after a tough year for the commercial real estate sector.
Losses grew by more than 130 percent to reach SR1.25 billion ($333 million), the company said in a stock exchange filing on Wednesday.
The developer behind King Abdullah Economic City said that beyond the general tough trading conditions created by the pandemic, it also recorded an impairment of SR316 million on properties available for sale and lease and other operating assets.
“Due to the prevailing economic environment and delays in completing projects, the management reassessed life cycle cost estimates of residential and industrial projects and accordingly, the cost estimates were revised, resulting in increase in gross loss by SR307 million as compared to the corresponding year,” the company said in the statement.
Still, it said losses were partially offset offset by an improvement in its hospitality and port development businesses as well as a reduction in administrative expenses.
The developer said it had recently engaged with mortgage and financing companies to make homes in King Abdullah Economic City more affordable and boost its cash flow generation.
It is also pursuing debt rescheduling with its lenders and said that it had agreed with the Kingdom’s Public Investment Fund to convert part of a government loan of R2.83 billion, into equity.
Losses widen at Emaar the Economic City after tough year for commercial real estate
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Losses widen at Emaar the Economic City after tough year for commercial real estate
- Losses grew by more than 130 percent to reach SR1.25 billion ($333 million)
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
