Emaar Economic City loss widens to 444 million riyals, stock drops 5.37%

Summary

• Nine-month net loss reached 444 million riyals, up 26.5% as revenue fell 37%.
• Third-quarter loss alone hit 241 million riyals, nearly double a year earlier.
• Shares slid 5.37% on the filing, even as equity rose 80% to 8,841 million riyals.

The latest

Emaar The Economic City posted a 444 million riyal net loss attributable to shareholders for the first nine months of 2026, against 351 million riyals a year earlier, according to its filing on the Saudi Exchange. Revenue dropped 37.004% to 429 million riyals. The developer of King Abdullah Economic City saw its stock fall 5.37% as the announcement was published.

Details

• The headline numbers: Nine-month net loss attributable to shareholders rose 26.495% to 444 million riyals from 351 million riyals, the company said in its Saudi Exchange filing. Revenue fell 37.004% to 429 million riyals from 681 million riyals over the same comparison period.
• Margin collapse: Gross profit was nearly wiped out, falling 94.047% to 15 million riyals. The operating loss widened to 166 million riyals from 52 million riyals a year earlier, a more than threefold deterioration at the operating line.
• The quarter: Third-quarter net loss reached 241 million riyals against 135 million riyals in the comparable quarter of 2025, a 78.518% increase. It also marks a sharp sequential deterioration from the 22 million riyal loss recorded in the second quarter of 2026.
• Quarterly revenue: Revenue for the third quarter fell 59.497% to 145 million riyals from 358 million riyals a year earlier, a steeper decline than the nine-month figure, indicating the pressure intensified over the most recent three months.
• Company explanation: The company attributed the quarterly revenue drop mainly to a 147 million riyal decline from earlier projects recognized on a percentage-of-completion basis and delivered during 2025, plus a 92 million riyal decline from projects recognized at a point in time.
• The offset: Partly countering those declines was a 26 million riyal increase in revenue from sales of residential and industrial units, according to the filing. The company did not disclose how many units were sold or in which developments.
• Why losses grew: Emaar The Economic City linked the 79% rise in net loss to the revenue decline combined with a 54 million riyal increase in legal provisions. The filing did not identify the cases or counterparties behind those provisions.
• The balance sheet: Shareholders' equity climbed 80.318% to 8,841 million riyals from 4,903 million riyals, a sharp strengthening of the capital base running counter to the earnings picture. Loss per share narrowed to 0.5 riyal from 0.67 riyal.
• Market reaction: The stock declined 5.37% at the time the announcement was published on the Saudi Exchange.

Background

Emaar The Economic City is the listed developer of King Abdullah Economic City on Saudi Arabia's Red Sea coast, a project combining residential, industrial and port-linked assets whose revenue recognition is tied to construction progress and unit handovers.

Between the lines

The gap between the two headline moves is the story: equity rose 80.318% while the operating loss tripled, meaning the balance sheet strengthened through capital rather than trading performance. Loss per share narrowed to 0.5 riyal even as the absolute loss widened, a function of a larger share base rather than improved results.

What's next

Full-year 2026 results will show whether the third-quarter revenue collapse reflects a delivery timing gap or sustained weakness, and whether the 54 million riyal legal provisions expand further.

Source: Saudi Exchange (Tadawul) — Emaar The Economic City filing