Emaar EC wipes out all accumulated losses

Logo of Emaar The Economic City (Emaar EC)

Emaar The Economic City (Emaar EC) brought its accumulated losses to 0% of capital as of Dec. 31, 2024, following a capital reduction, according to a Tadawul filing today, Feb. 27.

In its statement, Emaar EC attached a report that is based on unaudited and unreviewed balance statements for the fiscal year (FY) ended Dec. 31, 2024. It showed retained earnings, but the figures remain subject to auditing as part of the company’s financial statement procedures, which will be disclosed later.

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The recent capital cut came as part of Emaar EC’s financial restructuring plan, launched on Sept. 8, 2024. The move was aimed at strengthening the company’s financial position and improving its growth potential.

In December 2024, Emaar EC’s extraordinary general meeting (EGM) approved the board’s recommendation to trim the company’s capital by 53.83% from SAR 11.33 billion to SAR 5.23 billion, through writing off 610.07 million shares.

The capital reduction eliminated 0.5383 shares per outstanding share, in a bid to write off accumulated losses, according to Argaam’s data.

Agreed-Upon Procedures Report