• Dar Al Majed Real Estate Company (Al Majdiah), listed on Tadawul, and Knowledge Economic City Company (KEC) signed an MOU on September 15, 2026 to build a mixed-use project inside Medina's Knowledge Economic City.
• The vehicle is a closed-ended fund split 80% KEC / 20% Al Majdiah, managed by Capital Hill; KEC's share comes in as land valued at SAR875.4 million ($233m) rather than cash.
• Trade Arabia puts the total project cost at SAR2.8 billion ($738m); AGBI's report of the same MOU rounds it to $750m — a reminder that headline dollar conversions of Saudi riyal deals vary by outlet and exchange-rate assumption.
• The plan calls for about 2,700 apartments, 8,000 square metres of leasable commercial space and 3,500 parking spaces on a 97,000 square-metre site, explicitly marketed to non-Saudi buyers.
• The deal is an MOU with a 90-day exclusivity window for due diligence, not a signed, binding development agreement — financing, delivery dates and unit pricing are not yet disclosed.

Dar Al Majed Real Estate Company, the Tadawul-listed developer known as Al Majdiah, has signed a memorandum of understanding with Knowledge Economic City Company (KEC) to build a mixed-use project inside Medina's Knowledge Economic City district, according to reports from AGBI and Trade Arabia dated around September 15, 2026. The vehicle is a closed-ended real estate fund, split 80 percent to KEC and 20 percent to Al Majdiah, built around roughly 2,700 apartments and marketed explicitly to non-Saudi buyers under the kingdom's foreign-ownership rules. This is not investment advice.

How the fund is capitalized

KEC is not putting in cash — it is contributing land valued at SAR875.4 million ($233 million) toward its 80 percent stake, per Trade Arabia's account of the MOU terms. Al Majdiah's 20 percent comes from a mix of cash and fund units totaling roughly SAR200.7 million. Capital Hill is named as the fund manager. Structuring the anchor developer's contribution as land rather than capital is a common Saudi project-fund pattern, but it means the deal's stated size rests partly on an internal land valuation rather than a cash outlay.

The project's numbers, and a headline discrepancy

Trade Arabia reports a 97,000 square-metre site holding about 2,700 residential apartments, 8,000 square metres of net leasable commercial space, and more than 3,500 parking spaces, with projected revenue above SAR4 billion. Trade Arabia values the total project at SAR2.8 billion, converting to roughly $738 million; AGBI's headline on the same MOU rounds the figure to $750 million. Neither outlet discloses the exchange rate used, so the dollar figure should be read as an approximation of a SAR2.8 billion project, not a precise, audited cost.

Why the project is pitched at non-Saudi buyers

AGBI frames the development as targeting non-Saudi buyers, and Trade Arabia ties that positioning to Saudi Arabia's non-Saudi real estate ownership law taking effect in 2026, which opens designated zones — including parts of Medina and Mecca under conditions tied to religious tourism and residency status — to foreign purchasers. For KEC and Al Majdiah, marketing units to expatriates widens the buyer pool beyond domestic Saudi demand, a distribution strategy rather than a pricing or investment signal.

What is still unconfirmed

An MOU is a preliminary agreement, not a binding development contract. Trade Arabia reports a 90-day exclusivity period for due diligence before terms are finalized, meaning the fund structure, contribution values and even the 2,700-unit count could still change. Neither AGBI nor Trade Arabia cites a construction timeline, delivery date or unit pricing. Watch for the definitive fund agreement and any Tadawul disclosure from Al Majdiah confirming final terms — until then, the SAR2.8 billion figure and its dollar conversions remain reported, not confirmed final costs. This is not investment advice.