Emaar's Saudi Arabia Unit Turns to Profit

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Emaar Economic City, the Saudi Arabia subsidiary of the Dubai developer, reported 87.6 million riyals (Dh85.2 m) in net income for the second quarter, compared to a loss of 128.4m riyals in the same quarter last year.

The company attributed the turnaround to land sales and "a revision in the distribution of infrastructure costs" for King Abdullah Economic City, the 168 sq kilometre project it is developing on the Red Sea.

Net income for the first six months of the year was 74m riyals, compared to a loss of 181.9m for the same period last year. Earnings per share for the first half of the year jumped 0.08 riyal, after a loss of 0.21 riyal a share for the same period last year, the company reported in a statement posted on the Tadawul web site.

In May the project received a 5 billion riyals loan from the Saudi Arabian government.