KAEC Port to get $1.4 billion capital hike by Emaar unit Financial Services

The shareholders of the Emaar The Economic City have sanctioned a plan to raise around (SR5.2bn) so it can invest in the extension of the port at King Abdullah Economic City.

According to the company, capital of $700mn (SR2.6bn) would be utilised to increase its stake in the Port Development Company at King Abdullah Economic City (KAEC). This would further improves its share in the firm to just over 50%, while the remainder of the shares held by the joint venture partner Huta Marine holding.

Its finance will be utilised to help progress the next stage of the port, which will then run the growth of the adjoining Industrial Valley that takes up around one-third (63mn m2) of the city's 189mn m2 built-up area.

With the opening of a container terminal adequate of handling 1mn twenty foot equivalent (TEU) units a year, the port of KAEC became operational in January. The port will ultimately handle 20mn TEU, which will make it as one of the biggest in the world, once completed.