RIYADH: Kingdom Holding Co.(KHC) said yesterday it had signed a contract with Emaar Properties for development services through an affiliate that does not involve an investment by the UAE firm.
“Kingdom Holding confirms that there is a contract for development services between Emaar Properties PSJC and Kingdom Holding, representing Jeddah Economic Co.,” the firm said in a press release.
Jeddah Economic Co. is a limited liability company which is 40 percent owned by KHC.
KHC also confirms that “Emaar is not an investor and that this is in line with Emaar’s announcement and in conformity with Kingdom Holding Company’s press release issued on June 14 in which it states that Emaar is in charge of development services,” it said yesterday.
On Tuesday, Emaar stock fell sharply after it said that the KHC deal was still conditional and it would focus solely on managing the development process.
The United Arab Emirates’ bourse regulator had asked Emaar on Monday to give detailed clarification.
In another development, Emaar Properties said that it was reviewing a number of new projects in Saudi Arabia but none have been finalized.
A statement issued by the company yesterday says Emaar has a Saudi joint venture with the Al-Oula Group and is developing two projects called Jeddah Gate and Alkhobar Lakes.
Other projects were still in the review phase, the statement added.
“The company has been reviewing a number of propositions and opportunities in the country including a large master planned development in Riyadh. However ... no transaction has been finalized,” it said.
— With input from agencies