Saudi Developer Emaar Economic City (EEC), an affiliate of Dubai's Emaar Properties, narrowed its losses by 65 per cent in the third quarter.

The firm, which is developing the King Abdullah Economic City (KAEC) project on the Red Sea coast, posted a quarterly loss of SR63.5 million ($16.93 million) compared to losses of SR181.8 million in the same period last year.

'The reason for the loss is due to the delays of some the projects, which have not generated the targeted revenues,' the firm said in a bourse statement on Tuesday.

EEC's operational losses for the third quarter declined by 70.5 per cent compared to the same period last year to SR59.5 million.

KAEC, which faced delays with some projects, is the most prominent among a series of 'economic cities' that are part of Saudi Arabia's plan to diversify the country's oil and gas-based economy and provide jobs for the country's growing population.

Last month, EEC said it had agreed to set up a firm with Saudi Binladin Group to finance, develop and operate a major port on the Red Sea coast which will cost over SR4 billion, and is expected to start operation in 2012.-Reuters