Knowledge Economic City (KEC) has entered into a Memorandum of Understanding with Dar Almajed Real Estate Company (Almajdiah) and Capital Hill to construct a residential scheme in Madinah.

The project sits on roughly 97,000 square metres of developable land inside KEC’s wider 6.8 million square metre masterplan within the Haram perimeter. Initial estimates place total project costs around SAR 2.8 billion, with projected sales revenues expected to clear SAR 4 billion.

Plans outline approximately 2,700 residential apartments alongside 8,000 square metres of commercial ground-floor units and over 3,500 parking spaces. Located near Multaqa AlMadinah, the hub aims to merge living, retail, dining, green areas and community services.

The initiative primarily targets international Muslim purchasers following the introduction of the Law of Real Estate Ownership by Non-Saudis.

Under the proposed financial structure, a closed-ended real estate investment fund created under Capital Market Authority rules will handle ownership and funding. KEC is supplying the project site valued at roughly SAR 875.4 million as an in-kind share, while Almajdiah contributes cash and acts as development manager. Capital Hill will serve as fund manager.

Current estimates suggest KEC will hold roughly 80 per cent of fund units, with Almajdiah taking 20 per cent. Following final contracts, KEC expects to receive about SAR 89 million in cash alongside fund units worth approximately SAR 786.4 million.

The project builds upon the nearby Multaqa district, joining active schemes such as Multaqa AlMadinah 1, Multaqa AlMadinah 2, Multaqa Residences and Multaqa Hospitality. The deal aligns with objectives under Saudi Vision 2030, including the Quality-of-Life Program and Pilgrim Experience Program.

Abdulsalam Almajed,‏ Managing Director and Acting CEO of Almajdiah, said: ‘We are pleased to partner with Knowledge Economic City and Capital Hill on this significant development in Madinah. We look forward to bringing our development expertise to the project and creating a high-quality residential community that responds to the evolving aspirations of residents and property owners.’

Abdulaziz Almosa, Co-Founder and Chief Executive Officer of Capital Hill, said: “Capital Hill was established to institutionalize real estate in the Kingdom, connecting capital with quality real estate opportunities through an institutional model. It is our privilege to advance the transformation of Madinah, at a moment when the Kingdom’s new foreign ownership rules are opening its real estate market to a broader base of investors. This project gives eligible international buyers a genuine opportunity to own a home in the Holy City”

Dr. Moath Al-Yahya, CEO of Knowledge Economic City, said: ‘This partnership marks another important step in accelerating the development of Knowledge Economic City and unlocking the long-term value of our land portfolio. In the Holy City of Madinah, we are creating integrated communities that bring together quality living, lifestyle and investment opportunities within a connected destination.’