Knowledge Economic City Inks SAR 399M Deal to Build Major Educational Hub, Leased to Riyadh Schools

The landmark agreement will see KEC develop and lease a state-of-the-art educational complex, securing a long-term partnership with a leading education provider and advancing development in Madinah.

RIYADH, SAUDI ARABIA – Knowledge Economic City Company (KEC), a leading Saudi real estate developer listed under ticker 4310, today announced it has signed a major contract with Riyadh Schools Holding Company to develop and lease a new, integrated educational complex.

The total value of the transaction is SAR 399.3 million (approximately USD 106.5 million).

Under the terms of the landmark agreement, KEC will be responsible for the full development of the educational complex within the Knowledge Economic City project in Madinah. Upon completion, the state-of-the-art facility will be leased to Riyadh Schools Holding, which will operate the institution.

This strategic partnership underscores KEC’s core mission to create a world-class hub for knowledge and development in Madinah. By securing a high-profile tenant like Riyadh Schools, KEC not only adds a vital educational component to its city but also ensures a stable, long-term revenue stream through the lease agreement.

For Riyadh Schools Holding, a prestigious name in Saudi education, the deal facilitates a significant expansion into the holy city of Madinah. The move allows them to operate from a brand-new, purpose-built campus without the upfront capital expenditure of construction, leveraging KEC’s development expertise.

The agreement is a clear example of the synergies driving Saudi Arabia’s Vision 2030, which aims to diversify the economy and enhance key sectors like education and urban development. The project is expected to create a significant number of jobs and provide high-quality educational opportunities for residents of Madinah and the surrounding region.

Key Deal Points:

• Developer & Landlord: Knowledge Economic City (KEC)

• Operator & Tenant: Riyadh Schools Holding Company

• Project: A fully integrated educational complex.

• Total Value: SAR 399.3 million.

Investors will be closely watching KEC’s performance following this significant capital allocation, which solidifies a key part of its development pipeline and diversifies its real estate portfolio with a long-term, high-value asset in the resilient education sector.