Knowledge Economic City Signs MoU for Approximately SAR 2.8 Billion Mixed-Use Project in Madinah

Knowledge Economic City Company has signed a memorandum of understanding with Dar Al Majed Real Estate Company, known as Almajdiah, and Capital Hill Company for a proposed mixed-use residential and commercial development in Knowledge Economic City, Madinah. The scheme would cover approximately 97,000 square metres and include approximately 2,700 residential apartments, about 8,000 square metres of net leasable commercial space and approximately 3,500 parking spaces. Its preliminary cost is approximately SAR 2.8 billion, with expected revenues of more than SAR 4 billion.

Executive Summary

The agreement adds a sizeable residential and commercial scheme to Knowledge Economic City’s development pipeline. If it advances through due diligence, approvals and definitive agreements, the project could bring a substantial volume of housing alongside leasable commercial space. It would also test a partnership model combining land, development management and investment-fund expertise.

Confirmed Development Facts

• The memorandum was signed on September 14, 2026, and announced on September 15, 2026.
• The proposed development is located in Knowledge Economic City, Madinah, and has an approximate site area of approximately 97,000 square metres.
• The planned components comprise approximately 2,700 residential apartments, about 8,000 square metres of net leasable commercial space and approximately 3,500 parking spaces.
• The preliminary total project cost is approximately SAR 2.8 billion, while expected revenues are more than SAR 4 billion.
• Knowledge Economic City Company is expected to contribute the land. Almajdiah is expected to provide cash and act as Development Manager, while Capital Hill is expected to establish and manage the proposed closed-ended real estate investment fund.
• The memorandum includes a 90-day exclusivity period. The project remains subject to due diligence, final design, applicable regulatory requirements and the execution of definitive agreements.

Market Significance

The proposed scale is notable because it combines residential supply with an income-generating commercial element rather than positioning the scheme as housing alone. The apartment count could give the project relevance to the depth and range of accommodation available within Knowledge Economic City, while the commercial component could support a more integrated day-to-day environment if delivered as planned. The proposed fund structure also points to an approach that brings land ownership, project execution and investment management into a single development framework. It may offer a basis for assessing how large Saudi projects assemble capital, but the memorandum itself is not evidence of final financing.

Investor Perspective

For investors monitoring Saudi real estate exposure, the announcement is best viewed as a pipeline signal rather than a completed investment opportunity. The combination of approximately 2,700 apartments and about 8,000 square metres of net leasable commercial space raises questions about the positioning of the residential and commercial uses, whether the final design will retain the stated scale, and how the proposed fund will allocate risk between land, construction and operations. The preliminary cost and expected revenue figures provide an initial framework for considering project economics, but they are not a final valuation or return forecast. Progress through due diligence, approvals and definitive agreements will be more meaningful timing indicators. The 90-day exclusivity period is also a near-term transaction milestone, although it does not establish that development will proceed.