Emaar EC signs 2 land leases worth SAR 264.4M in SEZ

Logo of Emaar The Economic City Co. (Emaar EC)

Emaar The Economic City (Emaar EC) signed today, Nov. 28, two land lease agreements in the Special Economic Zone (SEZ) in the Industrial Valley, totaling SAR 264.36 million.

In two separate statements to Tadawul, the company said the first agreement was signed with Hyundai Motor Middle East Co. to establish and operate a facility for manufacturing and assembling vehicles and vehicle parts, valued at SAR 175.68 million, with a lease term of 20 years.

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The second lease, extending for 20 years, was signed with MENA Tyre Co. to establish and operate a plant for manufacturing pneumatic tires, for SAR 88.68 million.

The company highlighted that these agreements aim to capitalize on the available assets to enhance its revenue stream.

It also noted that the relevant revenue recognition will begin in the fourth quarter of 2024, as per the entailed terms and applicable financial reporting standards.