Emaar, The Economic City AGM endorses progress on KAEC; approves financial reports

The AGM endorsed the rapid progress in developing the various components of KAEC and congratulated the management for the strong investor response gained to the first phase launch.

The AGM approved the report on the company for the fiscal year ended December 31, 2007, and the financial reports and the report of accountants.

The meeting also approved the appointment of Mr Fahd Al-Rasheed, Chief Executive Officer of Emaar.E.C, as Board Member of the company.

The AGM approved the appointment of the auditors for the fiscal year 2008 and absolved the Board of Directors and Auditors from any liability for the fiscal year.

Mr Abdullah Saleh Kamel, Vice Chairman, Emaar.E.C said:

'We thank our shareholders for their confidence in the on-schedule development of King Abdullah Economic City, one of the largest private sector-led projects in the region. KAEC is poised to usher in a new era of socio-economic prosperity for the Kingdom in line with the vision of the Custodian of the Two Holy Mosques King Abdullah bin AbdulAziz AlSaud.'

He added: 'The confidence of the shareholders further inspires us to develop KAEC as one of the world's best investment destinations. The response to the launch of the first phase has been strong with investors from around the world leveraging on the growth opportunities offered by KAEC in several high-growth sectors including the Sea Port, Industrial Zone and Residential Communities.'

Mr Al-Rasheed said: 'Year 2007 was a milestone for KAEC as the various components of the project were unveiled and Emaar.E.C signed several key partnerships. In all infrastructural and other work of 17 million sq metres was undertaken in 2007, and contracts worth over SR2bn were awarded last year to various contractors for constructing residences, commercial buildings and other infrastructure work. More than 800,000 sq m has been leased out in the Industrial Zone and international investors are expected to bring in SR850m to the Kingdom.'

Mr Al-Rasheed added: 'Emaar.E.C is steered by qualified professionals with the workforce consisting of more than 64% Saudi nationals. Over 7,000 professionals and skilled workers are working on the construction of the project and the number is expected to increase to 10,000 within a year.'

Located on the Red Sea coast on 168 million sq m, KAEC has six components: the Sea Port, Industrial Zone, Central Business District, Educational Zone, Resort District and Residential Communities.

KAEC has the potential to create 1 million jobs and will be home to over 2 million residents.

The project highlights the huge employment and investment potential of Saudi Arabia in line with the Kingdom's Vision 10x10 to be one of the top ten most competitive economies in the world by 2010.