Knowledge Economic City Returns to Profit in the First Nine Months of 2026 with SR 71.3 million in Net Profit, as Q3 Net Profit Rises 253% to SR 99.7 million

Manal Saleh 

·       Nine-month revenue rose 40.2% to SR 330.5 million and gross profit increased 180.4% to SR 206.5 million. In the third quarter, revenue nearly doubled to SR 245.1 million, and gross profit rose by 251.6%

Madinah, Saudi Arabia – 10 November 2026: Knowledge Economic City Company (KEC; Tadawul: 4310) a publicly listed master developer Under the supervision of the Economic Cities and Special Zones Authority, and contributing to the urban and economic transformation in Madinah, announced a return to profitability for the first nine months of 2026, reporting net profit attributable to shareholders of SR 71.3 million, compared with a net loss of SR 26.7 million in the same period of 2025. Revenue for the period rose 40.2% to SR 330.5 million, while gross profit increased 180.4% to SR 206.5 million, lifting gross margin to 62.5% from 31.2%.

The third quarter was the principal contributor to the turnaround. Quarterly revenue nearly doubled, rising 98.8% year on year to SR 245.1 million, while net profit attributable to shareholders reached SR 99.7 million, up 253.0% from SR 28.2 million versus last year. Third-quarter gross margin strengthened to 74.1%, from 41.9% in the same quarter of 2025.

The results were driven primarily by the sale of a 13,049-square-metre land parcel for SR 169.6 million, recognized in the third quarter, together with SR 31.5 million of revenue from the Company’s group hotel operations, a new revenue stream introduced in 2026. Revenue from residential units recovered strongly during the quarter, rising to SR 65.8 million from SR 16.8 million in the second quarter, following the introduction of the new law permitting real estate ownership by non-Saudis.

The Company also strengthened its financial position. Accumulated losses narrowed to SR 371.0 million, or 10.93% of capital, as at 30 September 2026, from SR 442.3 million (13.04% of capital) as at 31 December 2025. Equity attributable to shareholders rose to SR 3,031.8 million, and cash and cash equivalents increased to SR 150.7 million.

Dr. Moath Al-Yahya, Chief Executive Officer of Knowledge Economic City, said: “Our return to profit in the first nine months of 2026 reflects the progress we are making in building a stronger and more resilient Knowledge Economic City. Through a flexible development model that combines land sales, development partnerships and real estate funds, we are creating sustainable value while advancing the development of Madinah. We are grateful for the continued support of the leadership for Madinah and its people, and for the trust of our shareholders and partners.”

During this period, the Company continued to apply a flexible development model that combines land sales, development partnerships and real estate funds. KEC signed a real estate development agreement with Al Rashed Real Estate for Multaqa Residence project, a letter of intent with BSF Capital to establish a real estate fund for Knowledge Gardens project, and a memorandum of understanding with Dar Almajed Real Estate (Almajdiah) and Capital Hill to develop a residential project within Knowledge Economic City. These developments support KEC’s strategy to deliver an integrated, world-class destination in Madinah and to contribute to the objectives of Saudi Vision 2030.

Key financial highlights

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About Knowledge Economic City (KEC)

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 fully integrated modern 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.