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Logo of King Abdullah Economic City
Emaar The Economic City (Emaar EC) signed on Nov. 28 a contract to sell a partially developed industrial land plot to CEER National Automotive Co. in the Industrial Valley, King Abdullah Economic City (KAEC), to build and operate a specialized factory for manufacturing electric vehicles (EVs).
The deal, which falls within the company’s core business activities, was valued at SAR 359.04 million, Emaar EC said in a statement to Tadawul, noting that the amount will be paid in installments over 15 years.
The asset book value stands at SAR 19 million.
Emaar EC will start recognizing revenues from the fourth quarter of 2022, in accordance with terms and condition of the contract and applicable financial reporting standards.
The proceeds will be primarily directed towards developing the project's infrastructure, operational working capital and meeting certain financial obligations.
On the other hand, the real estate developer added that Chairman Fahad Al-Saif and board member Majed AlSorour have an indirect interest in this contract, as they are the representatives of the Public Investment Fund (PIF), the major shareholder of CEER.
Earlier this month, Crown Prince Mohammed bin Salman announced the launch of CEER, the first Saudi electric vehicle (EV) brand.
The company, which is a joint venture between PIF and Hon Hai Precision Industry Co. (Foxconn), will license component technology from BMW for use in the vehicle development process. Foxconn will develop the electrical architecture of the vehicles, resulting in a portfolio of products that will lead in the areas of infotainment, connectivity and autonomous driving technologies. Each vehicle will be designed and manufactured in Saudi Arabia, and tested to the highest global automotive quality control and safety standards. Ceer vehicles are scheduled to be available in 2025.
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