Knowledge Economic City Signs SAR 91 Million Infrastructure Contract with SALCO Saudi Contracting Through Its Subsidiary, Algharraa International Real Estate Development

Rashad Iskandrni

·        The agreement will support several strategic developments, most notably the Knowledge Gardens project, as part of the Company’s plan to deliver enabling infrastructure and prepare development-ready sites that attract investment

Madinah, Saudi Arabia, 2 August 2026: Knowledge Economic City (KEC), the publicly listed master developer leading Madinah’s urban transformation, has announced that its subsidiary, Algharraa International Real Estate Development Company, has signed a contract with SALCO Saudi Contracting Company to deliver the infrastructure works for the Southeastern District of Knowledge Economic City. Valued at approximately SAR 91 million, excluding value added tax, the contract forms part of the company’s plan to complete the development of its land infrastructure and prepare its sites to attract investment and launch future development projects.

The works, to be delivered over 24 months, cover the area north and south of Sheikh Ibn Baz Road. The scope of work includes general site works, excavation, backfilling and grading, roads and pavements, potable water, sewerage and stormwater drainage networks, irrigation and firefighting networks, electrical works and street lighting, and ICT infrastructure and the district cooling network all delivered in accordance with approved engineering designs technical specifications and the requirements of the relevant authorities.

The Southeastern District is one of the most significant future development areas within Knowledge Economic City. The infrastructure works will serve several strategic projects currently under development and planned for launch in the next phase, most notably the Knowledge Gardens project alongside residential, commercial, hospitality and mixed-use developments, enhancing urban integration while improving the quality and efficiency of infrastructure and public services.

The works will also accelerate  land development, strengthen the investment environment for developers and investors, and enhance the company’s ability to launch projects on schedule, supporting the Company’s strategy  to  maximize the value of its 6.8 million square meter land portfolio while diversifying revenue streams.

The agreement supports o anticipated growth in demand for real estate within Knowledge Economic City, reinforced by recent regulatory developments that have expanded investment and ownership opportunities for non-Saudis. It also contributes to the goals of Saudi Vision 2030 by helping meet expected demand for residential units, hospitality and supporting services, while strengthening Madinah’s position as a leading investment, residential and tourism destination.

Dr. Moath Al-Yahya, CEO of Knowledge Economic City, said: “The signing of this contract reflects our commitment to delivering our masterplan to the highest standards, and marks a significant milestone in advancing the development readiness of the Southeastern District, which will be home to several of our most important futuristic projects, foremost among them Knowledge Gardens. Integrated infrastructure forms the foundation of successful destinations. Through this investment  we are preparing  our land for future development, attracting investment, strengthening our ability to launch projects on schedule, creating sustainable value for our shareholders and supporting the ambitions of of Saudi Vision 2030.”

The contract value will be paid through monthly progress payments based on the actual percentage of works completed, with contract costs capitalized as part of the project development cost in accordance with International Financial Reporting Standards (IFRS) and the Company’s applicable accounting policies.

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About Knowledge Economic City

Knowledge Economic City (KEC) is a publicly listed joint-stock company on the Saudi Exchange (Tadawul), operating under the regulation of the Economic Cities and Special Zones Authority (ECZA). With a masterplan covering 6.8 million square meters within the sacred boundaries of Madinah, KEC is developing  integrated  destinations that combine residential, commercial, cultural, and leisure components, transforming Madinah into a world-class lifestyle hub.

Strategically located near the Prophet’s Mosque, the Haramain High-Speed Rail station, and Prince Mohammed bin Abdulaziz International Airport, KEC plays a vital role in supporting Saudi Vision 2030, aligning with programs such as the Pilgrim Experience Program, Quality of Life, Housing, and Human Capability Development.