Knowledge Economic City (KEC) has signed a Memorandum of Understanding (MOU) with Dar Almajed Real Estate Company (Almajdiah) and Capital Hill to develop a major new residential project within Knowledge Economic City in Madinah.
Located within KEC’s 6.8 million sqm masterplan within the Haram boundary and close to Multaqa AlMadinah, the new development is planned across approximately 97,000 sqm of developable land. It is expected to comprise approximately 2,700 residential apartments of varying sizes and configurations, complemented by around 8,000 sqm of ground-floor commercial space and more than 3,500 parking spaces.
The preliminary total project cost is estimated at approximately SAR 2.8 billion, with expected revenues of more than SAR 4 billion.
The development is expected to primarily target non-Saudi Muslim buyers, in line with the recently introduced Law of Real Estate Ownership by Non-Saudis. The project will create a significant new opportunity for eligible international buyers seeking to own a home and invest in the Holy City of Madinah.
More than a residential development, the project will form part of KEC’s wider vision to create an integrated lifestyle destination where residential, hospitality, retail, dining, leisure, green spaces and community amenities come together within a connected urban environment.
Dr. Moath Al-Yahya, CEO of Knowledge Economic City, said:
‘This partnership marks another important step in accelerating the development of Knowledge Economic City and unlocking the long-term value of our land portfolio. In the Holy City of Madinah, we are creating integrated communities that bring together quality living, lifestyle and investment opportunities within a connected destination.’
Abdulsalam Almajed Managing Director and Acting CEO of Almajdiah, said:
‘We are pleased to partner with Knowledge Economic City and Capital Hill on this significant development in Madinah. We look forward to bringing our development expertise to the project and creating a high-quality residential community that responds to the evolving aspirations of residents and property owners.’
Abdulaziz Almosa, Co-Founder and Chief Executive Officer of Capital Hill, said:
“Capital Hill was established to institutionalize real estate in the Kingdom, connecting capital with quality real estate opportunities through an institutional model. It is our privilege to advance the transformation of Madinah, at a moment when the Kingdom’s new foreign ownership rules are opening its real estate market to a broader base of investors. This project gives eligible international buyers a genuine opportunity to own a home in the Holy City”
Under the proposed structure, the project will be owned and financed through a closed-ended real estate investment fund to be established in accordance with Capital Market Authority regulations. KEC will contribute the project land as an in-kind subscription, Almajdiah will contribute cash and act as Development Manager, while Capital Hill will establish and manage the proposed fund as Fund Manager.
The preliminary value of the project land is approximately SAR 875.4 million. Under the contemplated structure, KEC is expected to hold approximately 80% of the fund units and Almajdiah approximately 20%. Upon execution of the definitive agreements, KEC is expected to receive approximately SAR 89 million in cash, in addition to fund units equivalent to approximately SAR 786.4 million.
The new development will form part of KEC’s expanding Multaqa district and complement a growing pipeline of residential, retail and hospitality projects, including Multaqa AlMadinah 1, Multaqa AlMadinah 2, Multaqa Residences and Multaqa Hospitality.
Together, these developments are creating an interconnected urban and lifestyle destination in Madinah, bringing together residential, hospitality, retail, commercial, dining, entertainment, cultural and community experiences. This integrated approach is designed to enhance the experience for residents, visitors and businesses while strengthening connectivity across Knowledge Economic City.
The project further advances KEC’s strategy to accelerate the development and investment of its land portfolio through partnerships with specialist developers and institutional investors. It also supports the objectives of Saudi Vision 2030, including the Quality-of-Life Program and Pilgrim Experience Program, while strengthening Knowledge Economic City’s position as an integrated urban destination in Madinah.
All figures and commercial assumptions relating to the proposed development remain preliminary and are subject to due diligence, final design, applicable regulatory requirements and execution of the definitive agreements.
