Knowledge Economic City, Kaden and Capital Hill have signed a memorandum of understanding to establish a Madinah real estate fund valued at more than SAR 2.5 billion. The closed-ended private vehicle will develop a mixed-use project named Multaqa AlMadinah 2, subject to regulatory approvals from competent authorities.
The development comprises more than 1,500 residential units and approximately 30,000 square metres of leasable space, alongside open green areas. Furthermore, the project links directly with the existing Multaqa AlMadinah retail destination and the Hilton Hotel and Hilton Branded Residences to expand local economy capacity.
Scope of the Madinah real estate fund
Under the agreement, the partners divide specific operational responsibilities. Capital Hill will establish and manage the fund, while Kaden will act as developer, operator and investor. Knowledge Economic City will serve as the master developer and landowner for the project.
“This MOU reflects the development model we have adopted, which combines institutional capital with specialised expertise to develop distinctive projects, while Knowledge Economic City retains its role as landowner and master developer.”
Dr. Moath Al-Yahya, Chief Executive Officer of Knowledge Economic City
Strategic Roles and Partnerships
The transaction follows Knowledge Economic City’s strategy of financing projects through specialised investment vehicles rather than relying solely on corporate balance sheets. Consequently, this structure broadens the institutional investor base in the region while accelerating construction timelines.
“Madinah is one of the Kingdom’s most important growth markets, and this agreement reflects our confidence in its future and our long-term commitment to contributing to its urban and economic development.”
Eng. Mohammed Al Othman, Chief Executive Officer of Kaden
Integration with Master Plan Infrastructure
The project sits within Knowledge Economic City’s 6.8 million square metre master plan inside the Haram boundary in Madinah. The location connects Prince Mohammed bin Abdulaziz International Airport with the Haramain High-Speed Railway station and King Abdulaziz Road, near the Prophet’s Mosque. The wider development supports tourism targets and will eventually accommodate 200,000 residents and 42,000 hotel rooms.
“Part of our focus is on building projects that support the growth of the Holy Cities and give visitors, pilgrims and residents a world-class lifestyle experience and this project helps deliver on that objective.”
Abdulaziz Almosa, Co-Founder and Chief Executive Officer of Capital Hill
Alignment with National Development Goals
This initiative responds to growing property demand driven by rising pilgrim numbers and national expansion targets. In addition, the establishment of the Madinah real estate fund aligns with targets under the Housing Programme, the Pilgrim Experience Programme and the Quality of Life Programme across Saudi Arabia.
