Logo of Knowledge Economic City (KEC)
Knowledge Economic City (KEC) signed a real estate development agreement with Al Rashid Properties to develop the Multaqa Residences project, one of its strategic mixed-use developments in Knowledge Economic City in Madinah. 
In a statement to Tadawul, the company said the agreement has a 54-month term from the signing date, with the possibility of extension under its terms.
Under the agreement, Al Rashid Properties will be responsible for the project’s design, engineering, financing, construction, marketing, sales, delivery, and maintenance.
The project will be developed in accordance with Saudi Arabia’s off-plan real estate sales and leasing regulations after obtaining the required approvals, while KEC will retain its role as the master developer and ownership of the project land throughout the agreement.
The company said the partnership supports its strategy of developing its assets through specialized developers to accelerate project execution, maximize returns on its land portfolio, enhance shareholder value, and advance urban development within Knowledge Economic City.
The company said Al Rashid Properties will add value to the flagship projects being developed within Knowledge Economic City, leveraging its extensive experience across all aspects of real estate development.
It added that the partnership marks a step toward diversifying KEC’s development capabilities and benefiting from Al Rashid Properties’ expertise in delivering similar projects, particularly in Riyadh.
Multaqa Residences project is part of the Multaqa Al Madinah development on King Abdulaziz Road in Madinah.
The project overlooks Multaqa Mall and is directly linked to Hilton Hotel tower, Hilton Branded Residences tower, and the Multaqa Hospitality development, the JW Marriott Hotel, the Marriott Hotel, and Branded Residential units.
The project will feature residential units, branded residences, and commercial areas on a 149,500-square-meter site.
It forms part of the integrated development plan for KEC, serving the hospitality, tourism, retail, entertainment, museum, and residential sectors in line with Saudi Vision 2030, particularly the Tourism, Quality of Life, and Pilgrim Experience programs.
The company outlined the agreement’s key commercial and financial terms, noting that the project land is valued at SAR 9,000 per square meter, with an estimated total value of SAR 1.34 billion.
Any sales proceeds exceeding the reference development cost will be shared between Knowledge Economic City and Al Rashid Properties based on the agreed percentages, while the financial entitlements of both parties will be adjusted if the final saleable area differs from the agreed minimum, in accordance with the mechanism set out in the agreement.
The project’s development cost is estimated at approximately SAR 2.6 billion, excluding land value, with total revenue expected to reach around SAR 5 billion.
KEC’s obligations include providing the project land, retaining ownership throughout the development period, and completing subdivision, title transfer, and ownership registration procedures after all regulatory requirements are met.
The company added that the book value of the project land is approximately SAR 94 million.
Al Rashid Properties will prepare and approve the engineering designs, secure the required permits, fully finance the project, and appoint consultants, contractors, and suppliers.
It will also execute the construction works, manage the project’s marketing and sales activities, operate the escrow account, deliver the units to buyers, and fulfill all post-handover obligations.
KEC said the project’s financial impact will be recognized in its financial statements in accordance with International Financial Reporting Standards (IFRS), based on construction progress and the fulfillment of accounting recognition criteria.
The company added that the agreement represents a strategic partnership with one of the Kingdom’s leading real estate developers.
It is expected to accelerate the development of the Multaqa area, maximize the investment value of the company’s land portfolio, enhance liquidity, and recycle capital to finance its strategic projects.
The partnership is also expected to diversify the company’s development capabilities, enhance sustainable value for shareholders, and support the objectives of Saudi Vision 2030.
Logo of Knowledge Economic City (KEC)
Knowledge Economic City (KEC) signed a real estate development agreement with Al Rashid Properties to develop the Multaqa Residences project, one of its strategic mixed-use developments in Knowledge Economic City in Madinah.
In a statement to Tadawul, the company said the agreement has a 54-month term from the signing date, with the possibility of extension under its terms.
Under the agreement, Al Rashid Properties will be responsible for the project’s design, engineering, financing, construction, marketing, sales, delivery, and maintenance.
The project will be developed in accordance with Saudi Arabia’s off-plan real estate sales and leasing regulations after obtaining the required approvals, while KEC will retain its role as the master developer and ownership of the project land throughout the agreement.
The company said the partnership supports its strategy of developing its assets through specialized developers to accelerate project execution, maximize returns on its land portfolio, enhance shareholder value, and advance urban development within Knowledge Economic City.
The company said Al Rashid Properties will add value to the flagship projects being developed within Knowledge Economic City, leveraging its extensive experience across all aspects of real estate development.
It added that the partnership marks a step toward diversifying KEC’s development capabilities and benefiting from Al Rashid Properties’ expertise in delivering similar projects, particularly in Riyadh.
Multaqa Residences project is part of the Multaqa Al Madinah development on King Abdulaziz Road in Madinah.
The project overlooks Multaqa Mall and is directly linked to Hilton Hotel tower, Hilton Branded Residences tower, and the Multaqa Hospitality development, the JW Marriott Hotel, the Marriott Hotel, and Branded Residential units.
The project will feature residential units, branded residences, and commercial areas on a 149,500-square-meter site.
It forms part of the integrated development plan for KEC, serving the hospitality, tourism, retail, entertainment, museum, and residential sectors in line with Saudi Vision 2030, particularly the Tourism, Quality of Life, and Pilgrim Experience programs.
The company outlined the agreement’s key commercial and financial terms, noting that the project land is valued at SAR 9,000 per square meter, with an estimated total value of SAR 1.34 billion.
Any sales proceeds exceeding the reference development cost will be shared between Knowledge Economic City and Al Rashid Properties based on the agreed percentages, while the financial entitlements of both parties will be adjusted if the final saleable area differs from the agreed minimum, in accordance with the mechanism set out in the agreement.
The project’s development cost is estimated at approximately SAR 2.6 billion, excluding land value, with total revenue expected to reach around SAR 5 billion.
KEC’s obligations include providing the project land, retaining ownership throughout the development period, and completing subdivision, title transfer, and ownership registration procedures after all regulatory requirements are met.
The company added that the book value of the project land is approximately SAR 94 million.
Al Rashid Properties will prepare and approve the engineering designs, secure the required permits, fully finance the project, and appoint consultants, contractors, and suppliers.
It will also execute the construction works, manage the project’s marketing and sales activities, operate the escrow account, deliver the units to buyers, and fulfill all post-handover obligations.
KEC said the project’s financial impact will be recognized in its financial statements in accordance with International Financial Reporting Standards (IFRS), based on construction progress and the fulfillment of accounting recognition criteria.
The company added that the agreement represents a strategic partnership with one of the Kingdom’s leading real estate developers.
It is expected to accelerate the development of the Multaqa area, maximize the investment value of the company’s land portfolio, enhance liquidity, and recycle capital to finance its strategic projects.
The partnership is also expected to diversify the company’s development capabilities, enhance sustainable value for shareholders, and support the objectives of Saudi Vision 2030.
