Saudi developer Emaar The Economic City (EEC), the firm behind King Abdullah Economic City (KAEC), has announced a capital optimization plan worth SR8.7 billion ($2.32 billion). The plan aims to restructure EEC’s financial framework by reducing debt and improving financial health. The strategy includes restructuring SR3.8 billion in bank loans, converting SR4 billion of debt owed to the Public Investment Fund (PIF) into equity, and securing a SR1 billion convertible facility from PIF.
EEC is also focused on enhancing its presence in key sectors like logistics, tourism, and real estate. The company sees these steps as aligning with Saudi Arabia’s Vision 2030 goals, with KAEC positioned to attract more businesses and residents as a Special Economic Zone.
Chairman Fahad Al-Saif stated that this plan not only stabilizes the company’s financial position but also unlocks KAEC’s full potential for growth. Additionally, the restructuring consolidates credit facilities into a single Shariah-compliant facility from multiple lenders.
CEO Abdulaziz Ibrahim Al-Nowaiser added that EEC is undertaking measures to restore financial health and strengthen relationships with stakeholders. King Abdullah Port and various infrastructure projects, including new hospitality ventures, are expected to drive further growth.