On 2026-05-12 15:58:12 (Saudi Time), Emaar, the Economic City announced its Interim financial results for the three months ended on March 31, 2026.

Year-on-Year Performance Drivers

Sales declined 23.04% YoY to SAR 157 million primarily due to exceptional revenue in the comparative quarter from property development projects that reached completion in 2025 and did not generate comparable revenue in the current quarter, partially offset by a 53% increase in residential unit sales and 46% increase in operational revenue. Net loss widened by 46.34% to SAR 180 million, driven by decreased revenue, SAR 25 million increase in operational expenses from higher employee costs and marketing spend, SAR 17 million decrease in other income, and SAR 19 million provision for expected credit losses, partially offset by SAR 81 million reduction in finance costs due to debt-to-equity conversion and commercial debt restructuring.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 65.645% primarily due to lower residential land sales and absence of property development project completions that generated revenue in the previous quarter, partially offset by 6% increase in operational revenue from city operations. The company swung from SAR 293 million net profit to SAR 180 million net loss, mainly driven by the revenue decline and absence of previous quarter's one-off adjustments including SAR 317 million impairment reversal and SAR 26 million loan extinguishment gain. This was partially mitigated by SAR 58 million reduction in finance costs from debt-to-equity conversion and SAR 20 million lower expected credit loss provisions.

Other Items

The auditors issued an unmodified conclusion but included an emphasis of matter paragraph highlighting material uncertainty regarding the company's ability to continue as a going concern, stating "The Group's ability to achieve sustainable profitability and continue its operations without significant curtailment is highly dependent on the successful execution of management's plans, including obtaining additional funding from shareholders and the sale of properties to generate sufficient cash flows." The company reported accumulated losses of SAR 177 million, representing 2% of capital, with a net operating cash flow deficit of SAR 21 million during the three-month period ended March 31, 2026.

Original announcement:

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.