Knowledge Economic City Cites Real Estate Resilience

Knowledge Economic City has pointed to continued growth and resilience across the real estate sector in Madinah and Makkah, citing sustained demand for residential and mixed-use projects alongside limited future supply relative to projected population and visitor growth.

Forecasts for Madinah indicate a shortage of around 109,000 residential units by 2035, even after accounting for deliveries from Knowledge Economic City and competing mega projects such as Rua Al Madinah. The gap points to a structurally undersupplied market as demand keeps rising.

Financial performance

The company's total assets increased to around SAR 6.10 billion as of 30 June 2026, up from about SAR 5.38 billion at the end of September 2025, reflecting ongoing investment and development in its real estate portfolio.

For the first quarter of 2026, the company reported revenues of about SAR 55.4 million and a net loss of about SAR 15.4 million, narrowing losses year-on-year while increasing sales. In the second quarter, sales reached about SAR 29.9 million with a net loss of about SAR 12.9 million. Across the first half of 2026, sales totalled about SAR 85.3 million with a net loss of about SAR 28.3 million.

For full-year 2025, the company generated revenues of about SAR 319 million and a net loss of about SAR 34.9 million. Accumulated losses stood at roughly SAR 458 million as of 31 March 2026, or about 13.5% of share capital, though narrowing quarterly losses point to resilient core operations rather than falling demand.

In September 2026, the company signed a memorandum of understanding with Kaden Investment Company to co-develop a mixed-use project in Madinah with an estimated investment value of about SAR 2.5 billion — a sign of confidence in the long-term strength of the city's real estate market and its importance for residents and visitors alike.

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