Emaar EC, the master developer behind King Abdullah Economic City (KAEC) in Saudi Arabia, has said that its board of directors has recommended a 33% increase in its capital, taking the total from $2.26 billion to $3.01 billion.
In its filing to the Saudi Tadawul, the developer explained that the capital hike will be effected through settlement of the $754.5 million debt it owes to the Public Investment Fund (PIC). It added that the move is aimed at boosting the company’s liquidity and credit position in order to provide greater solvency in relation to its financial obligations, and to help improve the company’s ability to achieve its goals.
The approval plan will be put to a shareholders’ vote during an extraordinary general meeting (EGM), which will be held on September 12, 2021.
KAEC is the gateway to the Red Sea market, the fastest growing developing market in the world today, with direct access to King Abdullah Port and the Industrial Valley manufacturing and logistics hub.
The master developer has already invested $4.79 billion into the project.
With a total development area of 173 sqkm, KAEC is located along the coast of the Red Sea, around 100 km north of Jeddah, the commercial hub of Saudi Arabia.