Emaar Approves 53.83% Capital Reduction to Address Accumulated Losses

Emaar The Economic City announced the outcomes of its Extraordinary General Assembly Meeting (First Meeting), where shareholders approved the Board of Directors’ recommendation to reduce the company’s capital by 53.83%.

Key details of the capital reduction are as follows:

• Capital Before Reduction: SAR 11,333,333,340
• Capital After Reduction: SAR 5,232,599,090
• Reduction Percentage: 53.83%
• Shares Before Reduction: 1,133,333,334
• Shares After Reduction: 523,259,909
• Method of Reduction: Cancellation of 610,073,425 shares, equivalent to 0.5383 shares canceled for each share owned.
• Purpose: To offset accumulated losses totaling SAR 6,100,734,257 as of September 30, 2024.

The reduction will apply to shareholders owning shares as of the Extraordinary General Assembly date and registered in the company’s shareholder register at the Securities Depository Center (Edaa Center) by the end of the second trading day after the meeting.

Emaar confirmed, based on an accounting report prepared by KPMG Professional Services, that the capital reduction will not negatively impact the company’s liabilities.

Additional Resolutions Approved:

• Amendments to Article 7 of the company’s bylaws concerning share capital.
• Amendments to Article 8 of the company’s bylaws regarding subscription.

Trading Suspension and Adjustments:

Trading in Emaar’s shares will be suspended for two trading days starting Wednesday, January 1, 2025. Trading will resume with the adjusted share price on Sunday, January 5, 2025.

This strategic move aims to strengthen Emaar’s financial position and enhance its ability to achieve long-term growth.