The Knowledge Economic City Announces the Signing of a Real Estate Development Agreement for "Multaqa Residences" Project with Alrashid Properties

Knowledge Economic City signed a Real Estate Development Agreement with Alrashid Properties for the "Multaqa Residences" project, a mixed-use development on 149,520 square meters of land in Al-Madinah Almunawarah.
The project has an estimated development cost of approximately SAR 2.6 billion and is expected to generate total revenues of approximately SAR 5.0 billion over a 54-month implementation period.
Alrashid Properties will manage the project's design, financing, construction, and sales, while Knowledge Economic City provides the land—valued indicatively at SAR 1.34 billion—and retains ownership until legal transfer to purchasers.
Financial proceeds exceeding benchmark development costs will be shared between the parties, with revenue recognized in financial statements based on project progress and IFRS standards.

Element List	Explanation
Introduction	The Knowledge Economic City ("KEC" or the "Company") announces that it has signed a Real Estate Development Agreement with Alrashid Properties, for the development of the Multaqa Residences project, one of the Company's strategic mixed-use developments within Knowledge Economic City in Al-Madinah Almunawarah.
Memorandum Signing Date	2026-07-19 Corresponding to 1448-02-05
Counterparty	Alrashid Properties
Memorandum Subject	Under the agreement, Alrashid Properties has been appointed as the developer of the Multaqa Residences project and will be responsible for the project's design, engineering, financing, construction, marketing, sales, delivery, and maintenance. The project will be developed under the Off-Plan Sales Regulations in compliance with all applicable laws and regulations, following the issuance of the required approvals and licenses, while Knowledge Economic City will continue to act as the Master Developer and retain ownership of the project land throughout the term of the agreement. The agreement represents a strategic partnership with one of the Kingdom's leading real estate developers and is expected to accelerate the development of the whole Multaqa District, enhance the value of the Company's land portfolio, strengthen its liquidity and enable the best capital utilization to fund its strategic projects, diversify its development capabilities, and create sustainable long-term value for shareholders, while supporting the objectives of Saudi Vision 2030.
Memorandum Duration	The project implementation period is 54 months from the date of execution of the agreement and may be extended in the circumstances specified therein.
Related Parties	No related parties.
Financial Impact	The financial impact of the agreement represented in projects revenue, will be recognized in the Company's financial statements in accordance with the International Financial Reporting Standards (IFRS), based on the progress of the project and upon satisfaction of the applicable accounting recognition criteria.
Additional Information	The agreement complements the Knowledge Economic City's strategy to develop its assets through partnerships with specialized developers, thereby accelerating project delivery, maximizing returns from its land portfolio, enhancing shareholder value, and supporting the urban development objectives of Knowledge Economic City. Alrashid Group represents a significant value addition to the Company's flagship developments, given its extensive experience in real estate development across various asset classes. The partnership also diversifies the Company's development capabilities by leveraging Alrashid's experience in delivering comparable projects in Riyadh. Multaqa Residences project is strategically located within Knowledge Economic City as part of Multaqa Al Madinah development on King Abdulaziz Road in Al-Madinah Almunawarah. The project overlooks Multaqa Mall to the west, which is directly connected to the Hilton Hotel tower, the Hilton Branded Residences tower, and the Multaqa Hospitality development, which includes the JW Marriott Hotel, the Marriott Hotel, and branded residential units. The project comprises residential units, branded residences, and commercial components on a land area of 149,520 square meters. It forms part of an integrated mixed-use destination serving the hospitality, tourism, retail, entertainment, cultural, and residential sectors, supporting the objectives of Saudi Vision 2030, particularly those relating to tourism, Quality of Life, and the Pilgrims Experience Program. Key Commercial and Financial Terms Among the principal commercial and financial terms of the agreement are: • The project land has been valued at SAR 9,000 per square meter, representing an indicative land value of SAR 1,345,680,000. • Any sales proceeds exceeding the agreed benchmark development cost will be shared between Knowledge Economic City and Alrashid Properties in accordance with the agreed profit-sharing mechanism. • The financial entitlements of both parties will be adjusted should the final Gross Saleable Area differ from the agreed minimum, in accordance with the mechanism set out in the agreement. • The estimated development cost is approximately SAR 2.6 billion, excluding the land value, while total project revenues are expected to reach approximately SAR 5.0 billion. Key Obligations of Knowledge Economic City Among other responsibilities, the Company shall: • Provide the project land. • Retain ownership of the land throughout the development period. • Complete the subdivision, title transfer, and conveyancing procedures to purchasers upon fulfillment of the applicable legal requirements. The book value of the project land is approximately SAR 94 million. Key Obligations of Alrashid Properties Among other responsibilities, Alrashid Properties shall: • Prepare and obtain approval for the engineering designs. • Obtain all required development permits and approvals. • Fully finance the project. • Appoint consultants, contractors, and suppliers. • Execute all construction works. • Manage marketing and sales activities. • Open and manage the project's escrow account. • Deliver the completed units to purchasers in accordance with applicable regulations. • Fulfil all post-handover obligations in accordance with the relevant laws and regulations.