Saudi Arabia: Saudi master developer Knowledge Economic City Co. has signed two deals to deliver 396 residential apartments within the first phase of its mixed-use project Al-Alya.

In Tadawul filings, the listed firm announced the deals with Elkhereiji Commerce and Contracting Co., worth SR288.6 million ($77.92 million).

The first agreement entails fully implementing contracting works for additional residential buildings in the first phase of the Al-Alya mixed-use project. This comprises a group of four houses, offering 132 apartments of different sizes valued at SR117.5 million, excluding value-added tax.

The second contract involves the implementation of electromechanical, finishing, gardening, and site coordination works for a group of eight residential buildings valued at SR171.13 million, providing 264 apartments, the company said in a statement to Tadawul.

Based on work progress, both contracts will be paid in installments per monthly payment certificate.

The company commented on the second deal, saying: “Accordingly, the financial impact is represented in the cash outflow for the amount payable to the contractor over a period of 20 months starting from the end of May 2024.” 

The firm said that the financial impact of the first agreement is represented in the cash outflow for the amount payable to the contractor over a period of 24 months.

Al-Alya is one of the main projects in the Knowledge Economic City and represents a project with mixed-use components within a gated complex compound that combines hospitality, housing and offices as well as retail and education services.

It was designed to respond to the urban trend of humanizing cities and the quality-of-life program that relies on green areas and pedestrian walkways to create a style and vibrancy that meets the Kingdom’s Vision 2030.

The project aims to enable local and foreign companies, businessmen, and digital entrepreneurs to work in Madinah.

In October last year, Knowledge Economic City Co. signed an agreement with Gulf International Bank Capital for SR3.5 billion to establish a real estate investment fund.

The initiative is poised to launch the initial phase of the Islamic World District in Madinah and will span over 140,000 sq. meters, transforming the area into a mixed-use development.

The site will include hospitality, residential, retail, entertainment, and cultural zones, providing over 5,000 hotel keys, 743 residential apartments, plus a designated area of 24,000 sq. m. for retail shops.

GIB Capital is a subsidiary of Gulf International Bank, owned by the governments of the Gulf Cooperation Council, in which Saudi Arabia’s Public Investment Fund holds a 97.2 percent stake, according to the bank’s 2022 annual report.

The project aims to enhance the visitor experience in Madinah, a city that holds historical significance as the first capital of Islamic civilization and a destination that draws millions of pilgrims and tourists annually.