Too Dependent on Parent Company

Emaar the Economic City (EEC, 4220) is a consortium headed by Emaar Properties and numerous high profile investors from Saudi Arabia. The proceeds of the initial public offering in August 2006 were earmarked for the development of the King Abdullah Economic City, a new metropolis that will initially cost SR 100 billion (US$ 26.6 billion) to build. The prestigious mega-project, encouraged by governmental incentives and economic reforms, influences investor confidence in the whole country. It is the single largest private sector investment in the Kingdom. All six key components of the project are geared towards generating significantly more employment opportunities, building the Kingdom's infrastructure to be prepared for the future, facilitating sustained investor interest - and, above, retaining oil profits within the country.