Knowledge Economic City Expands in Madinah in 2026

Knowledge Economic City has reported continued growth in its Madinah developments through 2026, with new mixed-use projects and land sales advancing under its wider master plan for the city.

Among the latest additions is the Knowledge Gardens project, valued at SAR 7.5 billion, alongside a land sale worth SAR 169.64 million, both falling within the company's Madinah master plan. That plan spans 6.8 million square meters and carries more than SAR 24 billion in committed investment, positioning it as one of the larger integrated developments in the city.

The activity comes as foreign ownership changes affecting Makkah and Madinah took effect in 2026, opening designated zones to Muslim non-Saudi ownership. The shift marks a notable expansion in who can invest in property in the two cities, subject to the defined zones and applicable rules.

What buyers should note on costs

The commonly stated government transfer burden in Makkah and Madinah is a 5% Real Estate Transaction Tax (RETT) at purchase, plus a 2% non-Saudi disposal fee applied at exit. Together, this amounts to a combined 7% across the full holding period.

For residents and investors following the market, the developments signal ongoing confidence in real estate in Makkah and Madinah. The combination of large-scale investment and broadened ownership rules may create fresh opportunities, though buyers should confirm the specific zones, procedures, and any additional fees through official channels before committing to any transaction.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving