Ash-Sharqiyah offsets accumulated losses on land reclamation, says CEO

Ash-Sharqiyah Development Co. has offset its accumulated losses after reclaiming additional 36 million square meters of land, chief executive, Samer Alsourani, told Argaam on telephone Tuesday.

Accordingly, upon implementation of the International Financial Reporting Standards (IFRS), recorded an additional SAR 220.68 million from that land, he said.

Although the Saudi Authority for Accredited Valuers (Taqeem) has set the price of the land between SAR 20 and SAR 40/square meter, the company has conservatively set the price at SAR 6/ square meter.

The procedures for transferring the land ownership are over 80 percent complete, Alsourani said.

Meanwhile, Alsourani added that no decision has been yet taken about the planned capital reduction, but all related updates will be disclosed later on.

Ash-Sharqiyah will focus on high-efficiency technologies that use less water to produce various agricultural crops.  

Other investments in poultry, green fodder imports along with other real estate and tourism projects are being mulled.

The company has failed to secure finance from commercial banks or the Agricultural Development Fund as it does not have the land deed or other assets to pledge, he added.