Reuters reported that Saudi developer Emaar Economic City, which secured USD 1.33 billion loan from the government in May to speed up construction, has terminated a contract to build 134 villas in the King Abdullah Economic City development.

Emaar Economic City affiliated to Dubai developer Emaar Properties, ended the contract with Al Radwan Contracting. The termination of the construction contract is in normal course of business where re evaluation of project feasibilities in view of constantly changing business environment do require amendment/termination of construction contracts. Emaar does not expect an adverse impact from the project cancellation.

Emaar Economic City is spearheading the development of King Abdullah Economic City, a project aimed at diversifying the kingdom's oil based economy. The developer received SAR 5 billion loan from the kingdom's finance ministry to speed up construction of a project.

King Abdullah Economic City is among five so called economic cities planned in the world's largest oil exporter to speed up job creation for the country's rapidly growing population.

(Sourced from Reuters)