Emaar, the Economic City Announces its Interim Financial Results for the Period Ending on 31-03-2026 (Three Months)

This decrease was partially offset by the following:

- 53% increase in sales of residential units and land.

- 46% Increase in operational revenue driven by income from city operations, and higher revenue from student enrollment in one of the subsidiaries operating in education sector.

- Decrease in period revenue for the reason provided above

- Increase in operational expenses by SAR 25m primarily driven by higher employee related cost and increased marketing spend to support real estate strategy, and especially after the launch of the Non-Saudi Real Estate Ownership Law during the period.

- Decrease in other income by SAR 17m is due to the comparative quarter including gains from the disposal of an Investment Property and one-off release of certain excess provisions

- The current quarter includes a charge of SAR 19m relating to the provision for expected credit losses, whereas the corresponding quarter reflected a reversal of such provision as per the ECL methodology under IFRS.

- The increase in net loss was partially offset by a reduction in finance costs of SAR 81m, primarily driven by the conversion of SAR 4.1b of debt into share capital, and the commercial debts restructuring of SAR 3.7b loan at lower interest rates.

-Lower residential land sales

- Revenue recognized in the previous quarter from property development projects under the percentage-of-completion method, which reached full completion and were delivered during 2025, therefore did not generate comparable revenue in the current quarter.

This decrease was partially offset by a 6% Increase in operational revenue driven by income from city operations.

- Decrease in revenue for the reason provided above

- Increase in operational expenses by SAR 9m primarily driven by higher employee related cost and increased marketing spend to support real estate strategy and the launch of the Non-Saudi Real Estate Ownership Law during the period.

- The corresponding quarter included one-off adjustments, comprising an impairment reversal of SAR 317m on non-financial assets and a gain on extinguishment of a loan amounting to SAR 26m.

Also, the negative impact was partially controlled by the following:

- Decrease in provision for expected credit loss by SAR 20m between the two comparative periods.

- Decrease in financial charges by SAR 58m primarily driven by the conversion of SAR 4.1 billion debt into share capital.