Saudi property developer Emaar Economic City said on Monday it has cancelled a 1.4 billion riyals ($373.3 million) contract which it awarded to Saudi Binladin Group (SBG) due to a drop in costs.

The firm, spearheading the development of King Abdullah Economic City (KAEC) on the Saudi Red Sea coast, is reviewing plans to build 16 towers at the Baylasun area of the city after the drop in contracting and construction material costs, it said in a statement posted on the bourse's website.

SBG was awarded the contract to build the 16 towers in 2008, it added. - Reuters