The Knowledge Economic City Announces the Signing of an Infrastructure Works Contract by its Subsidiary, Algharraa International Real Estate Development Company Limited, with SALCO Saudi Contracting Company

Element List	Explanation
Introduction	The Knowledge Economic City ("KEC" or the "Company") announces that its subsidiary Algharraa International Real Estate Development Company Limited has signed a contract with SALCO Saudi Contracting Company for the execution of the infrastructure works for the Southeastern District of Knowledge Economic City. The contract forms part of the Company's strategy to complete the development of its land infrastructure, enhance the readiness of its development sites, attract investments, and facilitate the launch of future development projects.
Date of Announcement of the Award	2026-07-27 Corresponding to 1448-02-13
Contract Subject Matter	The execution of the infrastructure works for the South Eastern District of Knowledge Economic City, including general site works, earthworks, excavation and backfilling, roads and pavements, potable water network, sewerage network, stormwater drainage network, irrigation network, firefighting network, electrical works, street lighting network, Information and Communication Technology (ICT) infrastructure, and District Cooling network, in accordance with the approved engineering designs, technical specifications, and the requirements of the relevant authorities, within the contract period.
The Entity with Which the Contract was Signed	SALCO Saudi Contracting Company
Date of Signing the Contract	2026-07-27 Corresponding to 1448-02-13
Contract Value	SAR 90,998,853 (excluding Value Added Tax).
Contract Details	Under the contract, SALCO Saudi Contracting Company will execute and complete the infrastructure works for the Southeastern area of Knowledge Economic City, covering the area located north and south of Sheikh Ibn Baz Road. The scope of work includes general site works, excavation, backfilling and grading works, roads and pavements, potable water network, irrigation network, sewerage network, stormwater drainage network, electrical works, street lighting network, Information and Communication Technology (ICT) infrastructure, and the District Cooling network, in accordance with the approved engineering designs and technical specifications, while complying with the requirements of the relevant authorities. The contract also includes testing, commissioning, and handover of the completed works to the relevant authorities in accordance with the terms and conditions of the contract.
Contract Duration	24 months
Financial Impact and the Relevant Period	The contract value will be paid through monthly progress payments based on the actual percentage of completed works. Accordingly, the financial impact will be reflected in the Company's cash outflows throughout the execution period of the contract. The contract costs will also be capitalized as part of the project development cost in accordance with the International Financial Reporting Standards (IFRS) and the Company's applicable accounting policies.
Related Parties	There are no related parties to this contract.
Additional Information	The signing of this contract represents an important milestone in the implementation of Knowledge Economic City's strategy to complete the infrastructure development of its land bank and prepare development-ready sites to attract investments and launch future real estate projects. The project is expected to accelerate urban development, enhance the investment value of the Company's land portfolio, and increase the readiness of strategic development sites. The Southeastern area represents one of the most significant future development areas within Knowledge Economic City. The infrastructure works will support a number of strategic projects currently under development and planned for launch, of the Knowledge Gardens project, in addition to future residential, commercial, hospitality, and mixed-use developments. The project will further enhance urban integration and improve the quality and efficiency of infrastructure and public services across the development area. The infrastructure works will also accelerate land development, strengthen the investment environment for developers and investors, and improve the Company's ability to launch projects in line with its development schedule, thereby supporting its strategy of maximizing the value of its land portfolio and diversifying its revenue streams. This project is being undertaken in anticipation of the expected growth in demand for real estate products within Knowledge Economic City, supported by recent regulatory developments that have enhanced investment opportunities and property ownership by non-Saudis. The project also contributes to the objectives of Saudi Vision 2030 by helping meet the anticipated demand for residential units, hospitality, and supporting services, while further strengthening Madinah's position as a leading investment, residential, and tourism destination. The execution of this contract constitutes a key milestone toward the development of the Southeastern area and the enhancement of its infrastructure readiness, supporting the delivery of future strategic projects and creating sustainable long-term value for the Company's shareholders.