CMA approves Emaar EC request to reduce capital

Logo of King Abdullah Economic City 

The Capital Market Authority (CMA) issued a resolution approving Emaar The Economic City's (Emaar EC) request to reduce its capital from SAR 11.33 billion to SAR 5.23 billion, thereby reducing the number of shares from 1.13 billion to 523.26 million.

This approval is contingent upon the company’s extraordinary general meeting (EGM) approval and the completion of the necessary procedures in accordance with the applicable regulations.

The company will issue a disclosure document to its shareholders outlining the proposed capital reduction method and the expected impact of such reduction well in advance of the EGM, allowing shareholders sufficient time to vote on the proposed decrease.

The CMA’s approval of a company’s capital reduction application should not be construed as an endorsement of the feasibility of the reduction. The CMA’s approval solely confirms that the regulatory requirements under the Capital Market Law and its Implementing Regulations have been fulfilled.