- Knowledge Economic City Co. sealed SR 288.6 million ($78 Million) in deals with Elkhereiji Commerce and Contracting Co. for residential projects in the Al-Alya development.
- The contracts will be paid in installments over 20 and 24 months respectively, starting from May 2024, impacting cash outflows.
- SR 3.5 billion investment deal with Gulf International Bank to develop Madinah’s Islamic World District.
- The Projects aim to elevate Madinah as a premier destination, blending historical significance with modern amenities to enhance visitor experiences and foster city growth.
Knowledge Economic City Co., Saudi’s premier developer, has recently sealed two significant deals in its Al-Alya mixed-use project.
These agreements, valued at a staggering SR 288.6 million (~$78 Million), are with Elkhereiji Commerce and Contracting Co., as disclosed in Tadawul filings.
The first deal involves the comprehensive implementation of contracting works for additional residential buildings within the inaugural phase of the Al-Alya project.
This encompasses a group of four residential blocks, offering a total of 132 apartments in varying sizes. The total worth of this endeavor, excluding value-added tax, amounts to SR117.5 million.
The company announced its second contract, which involves handling various tasks like electromechanical work, finishing touches, gardening, and site coordination for a set of eight residential buildings.
These buildings are quite valuable, totaling SR 171.13 million and offering a total of 264 apartments.
The payment for these contracts will be divided into installments, paid monthly based on the progress of the work.
The company shared that this second deal will have a financial impact involving a cash outflow over a period of 20 months, starting from the end of May 2024.
The firm stated that the financial impact of the initial agreement reflects in the cash outflow for the amount payable to the contractor over a 24-month period.
Al-Alya is a primary project in the Knowledge Economic City. It is a mixed-use development within a gated complex combining hospitality, housing, offices, retail, and education services.
The design of the project responds to the urban trend of humanizing cities and the quality-of-life program, relying on green areas and pedestrian walkways to create a style and vibrancy meeting the Kingdom’s Vision 2030.
The goal of the project is to enable local and foreign companies, businessmen, and digital entrepreneurs to operate in Madinah.
In October 2023, Knowledge Economic City Co. entered an agreement with Gulf International Bank Capital for SR 3.5 billion. The purpose is to establish a real estate investment fund.
The fund will support the development of the Islamic World District in Madinah. This district will cover an area of over 140,000 sq. meters. It will undergo transformation into a mixed-use development.
The site will comprise hospitality, residential, retail, entertainment, and cultural zones. It will offer over 5,000 hotel keys and 743 residential apartments. Additionally, there will be a designated area of 24,000 sq. m. for retail shops.
GIB Capital operates as a subsidiary of Gulf International Bank, primarily owned by the governments of the Gulf Cooperation Council.
According to the 2022 annual report of Gulf International Bank, Saudi Arabia’s Public Investment Fund holds a significant stake of 97.2 percent in the bank.
The project’s primary goal is to enrich the visitor experience in Madinah, a city steeped in historical significance. Madinah holds a special place as the first capital of Islamic civilization, attracting millions of pilgrims and tourists every year.
This initiative seeks to elevate Madinah as a premier destination by enhancing various aspects of the visitor experience. It aims to provide modern amenities and services that align with the city’s esteemed historical heritage.
Through these efforts, the project aims to contribute to the city’s growth as a prominent cultural and religious hub, ensuring visitors leave with memorable experiences and a deeper appreciation of Madinah’s rich heritage.
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Last Updated on April 15, 2024 by Safiya K
