EMAAR EC Raises Recommendation to Transfer Debts Owed to the PIF to SAR 4.11 Billion

Emaar, The Economic City (Emaar EC) (the “Company”) announced on Monday the issuance of a resolution by its Board of Directors to pass an amendment to the previous Board of Directors’ recommendation to raise the value of the debt to be transferred from SAR 3.97 billion to SAR 4.11 billion, in order to add all interest, fees and commissions as of Dec. 31, 2024. An addendum to the debt transfer agreement with the Fund was also concluded on March 09, 2025 reflecting this, including the debt transfer equation.

The Company stated in a statement today on “Tadawul” that it will disclose all relevant details in its shareholders’ circular that will be published after obtaining the approval of the Capital Market Authority and the Saudi Stock Exchange.

The Company added that the debt conversion proposal comes as part of the financial restructuring plan announced by the Company on Sep. 08, 2024, which aims to enhance the stability of the Company’s financial and operational position and to restructure the capital to improve its ability to move forward in achieving its growth plans.

It is worth noting that the fund is a related party, as it is one of the Company’s major shareholders.

This is in reference to Emaar, The Economic City’s announcement dated Sep. 08, 2024 on the Saudi Stock Exchange’s website regarding the Board of Directors’ recommendation to shareholders to increase capital by converting the debt owed to the Public Investment Fund (PIF) amounting to (SAR 3.97 billion) into new ordinary shares, which includes the financial liabilities and obligations owed by the Company and due to the Fund in accordance with: (a) the Shareholder Loan Agreement concluded with the Fund dated Feb. 19, 2023 and (b) the debt transferred by the Ministry of Finance (“the Ministry ‘MoF’”) in favour of the Fund dated Sep. 05, 2024, and its conclusion of the Debt Conversion Agreement for that with the Fund dated Sep. 07, 2024 (“the Debt Conversion Agreement”), and where it was indicated in the previous announcement that the two parties would agree to settle the accrued interest at a later date.