KEC Signs MOU for SAR 2.8 Billion Project in Madinah

Knowledge Economic City Company (KEC) has signed a Memorandum of Understanding (MOU) with Dar Almajed Real Estate Company (Almajdiah) and Capital Hill Company to develop a major residential and commercial project within Knowledge Economic City in Madinah. The project has a preliminary total cost of approximately SAR 2.8 billion and is expected to generate revenues exceeding SAR 4 billion. The MOU was signed on September 14, 2026, and outlines the development of the project on approximately 97,000 square meters of land adjacent to the Multaqa Al Madinah development. The project will be owned and financed through a closed-ended real estate investment fund, subject to regulatory approvals and definitive agreements. KEC is expected to hold 80% of the fund units, while Almajdiah will hold the remaining 20%. KEC will contribute the project land as an in-kind subscription to the proposed fund, with the land initially valued at approximately SAR 875.4 million. Almajdiah will contribute approximately SAR 200.7 million and act as the Development Manager, while Capital Hill will manage the real estate investment fund. The development will include approximately 2,700 residential apartments, a ground-floor commercial component with 8,000 square meters of net leasable area, 3,500 parking spaces, and associated infrastructure. The residential component is planned as a build-to-sell development, while the commercial component will be leased and operated until stabilization before being sold. The project primarily targets non-Saudi Muslim buyers, aligning with the new Law of Real Estate Ownership by Non-Saudis. The development is part of a broader cluster of interconnected projects within Knowledge Economic City, connecting with Multaqa Al Madinah 2 and Multaqa Residences, and forming an integrated urban destination.