Riyadh – Mubasher: Knowledge Economic City has signed a real estate development agreement with Al Rashid Real Estate to develop the Al Multaqa Residence project in Madinah.

The project, spanning 149,520 square meters, is valued at an estimated land price of SAR 1.35 billion, calculated at SAR 9,000 per square meter, according to a bourse filing.

Under the 54-month contract, Al Rashid Real Estate will serve as the developer responsible for design, engineering, financing, construction, and marketing. Knowledge Economic City will retain ownership of the land, which has a book value of SAR 94 million, and act as the master developer.

Development costs, excluding land value, are estimated at SAR 2.60 billion, while total project revenues are expected to reach SAR 5 billion.

The development will be executed under off-plan sales and leasing regulations. Financial impact will be recognized in the company’s financial statements according to IFRS standards based on project progress.

The partnership aims to accelerate the development of the Al Multaqa area and enhance shareholder value by leveraging Al Rashid’s expertise in mixed-use residential and commercial projects.

The group sold two land plots within its master plan in Madinah for a total value of SAR 229.12 million.