Knowledge Economic City signs $266M mixed-use development in Saudi
January, 2025
Knowledge Economic City has announced the signing of a framework agreement with Sidra Capital and Raseel Properties on 22 December 2024 to create a closed-ended real estate investment private fund.
As per the joint agreement, Sidra Capital will serve as the fund manager, while Raseel Properties will oversee the development of the Al Duha mixed-use project. Knowledge Economic City, listed on the Tadawul stock exchange, will be the majority investor in the fund.
The Al Duha mixed-use development will be situated along King Abdulaziz Road in Madinah, with a total investment of $266 million. The project will include a variety of spaces, comprising hospitality, residential, retail, and office units.
Expected features of the development include 150 hotel keys, 576 residential apartments, and approximately 21,000 square metres of leasable office space. The project will also offer multiuse retail space, further enhancing its appeal to various sectors.
Timeline and Vision 2030 Alignment
The fund is projected to launch in the first quarter of 2025, with the full completion of the project slated for the first quarter of 2029.
This mixed-use development supports Saudi Arabia’s Vision 2030 and is aligned with the objectives of the Madinah Governorate, the Ministry of Tourism, and the Ministry of Culture.
Earlier in December 2024, Knowledge Economic City also signed a deal with Hilton and Al Gharaa International for Real Estate Development to introduce three new hotels in Madinah, further contributing to the city’s growing hospitality and tourism sector.
