Emaar The Economic City announces its Annual Financial results for the period ending on 2025-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	1,138	426	167.14
Gross Profit (Loss)	484	-119	-
Operational Profit (Loss)	368	-361	-
Net Profit (Loss) Attributable to Shareholders of the Issuer	-9	-1,135	-99.21
Total Comprehensive Income Attributable to Shareholders of the Issuer	-20	-1,138	-98.24
Total Shareholders Equity (after Deducting Minority Equity)	9,346	5,267	77.44
Profit (Loss) per Share	-0.02	-2.17
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year	The increase in revenue by 167% during the current year compared to the last year is mainly attributable to the following:

- Higher sales of residential land and the recognition of additional development revenue resulting from project progression in the percentage of completion for ongoing property development projects.

- Increase in operational revenue, mainly driven by lease contracts signed in the Industrial Valley, increased hospitality revenue and higher education sector revenue from student enrollment in one of the subsidiaries. The reason of the increase (decrease) in the net profit during the current year compared to the last year is The decrease in net loss by 99% during the current year compared to the last year is mainly attributable to the following:

- Increase in revenues for the reasons provided above.

- Decrease in operational expenses by SAR 20 million due to lower legal and professional fees and optimized spending on sales and marketing activities during the current year.

- Decrease in financial charges by SAR 74 million due to the restructuring of long-term commercial debt at lower interest rates and conversion of shareholder loan into equity.

- Reversal of impairment loss of SAR 317 million, in accordance with IAS 36, booked in prior years on non-financial assets. The reversal is based on an increase in the recoverable amounts of these assets driven by higher fair values, supported by favorable market conditions, improved operational performance, and positive regulatory and economic developments. This reversal underscores the Group’s proactive monitoring of asset performance.

- Gain on extinguishment of loan of SAR 269 million due to the successful completion of commercial debt restructuring at lower interest rates.

- Decrease in Zakat charges by SAR 54 million, mainly because the last year included a one-off charge of SAR 66 million related to legacy Zakat assessments.

Above is partially off-set by following :

- Decrease in other income by SAR 70 million, mainly due to a one-off income of SAR 45 million recognized last year following a court ruling in favor of the Group, as well as a SAR 19 million decrease in gain on disposal of investment property compared to the last year.

- Provision for Expected Credit Loss (ECL) charge of SAR 71 million due to increases in contract assets, compared to last year which recorded a reversal following reassessment of provision as per accounting standards. Statement of the type of external auditor's report Unmodified opinion Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) We draw attention to Note 1 of the consolidated financial statements, which indicates that the Group incurred a net loss of SR 9 million and reported a net operating cashflow deficit of SR 85 million during the year ended 31 December 2025. The Group’s ability to achieve sustainable profitability and continue its operations without significant curtailment is highly dependent on the successful execution of management’s plans, including obtaining additional funding from shareholders and the sale of properties to generate sufficient cash flows. These events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter. Reclassification of Comparison Items Certain prior period amounts have been reclassified wherever necessary to

conform to the presentation adopted in the consolidated financial statements for the current year. Additional Information -

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