Knowledge Economic City Company Profile

Background

Overview

Knowledge Economic City (KEC) is a Saudi Arabian joint-stock company established in August 2010, following a successful initial public offering earlier that year. The company is publicly listed on the Saudi Stock Exchange (Tadawul) under the ticker symbol 4310. KEC is headquartered in Al Madinah, Saudi Arabia, and is dedicated to the development and management of the Knowledge Economic City, a master-planned development located in Madinah.

Mission and Vision

KEC's mission is to develop a world-class destination that stimulates and attracts investments and knowledge-based economic development, offering its residents and visitors a distinguished lifestyle with integrated services, and delivering rewarding returns to its shareholders. The company's vision is to position Madinah as a global leader in knowledge-based industries, attracting talent and creating opportunities internationally.

Primary Area of Focus

KEC focuses on real estate development, infrastructure, and the establishment of knowledge-based industries within the Knowledge Economic City. The development spans approximately 6.8 million square meters and is designed to accommodate 150,000 residents. The city aims to provide high-quality housing, modern amenities, and facilities that support knowledge-based industries.

Industry Significance

KEC plays a pivotal role in Saudi Arabia's Vision 2030 initiative, which seeks to diversify the economy and reduce dependence on oil revenues. By focusing on knowledge-based industries and creating a conducive environment for innovation and investment, KEC contributes significantly to the economic development of the Madinah region and the Kingdom as a whole.

Key Strategic Focus

Core Objectives

Economic Diversification: Promote economic diversity by developing knowledge-based industries and attracting international investments.

Job Creation: Create employment opportunities for the local population through the establishment of various industries and services within the city.

Urban Development: Develop a modern urban environment with high-quality housing, infrastructure, and amenities to enhance the quality of life for residents and visitors.

Specific Areas of Specialization

Real Estate Development: Design and construction of residential, commercial, and mixed-use properties.

Infrastructure Development: Establishment of essential services such as telecommunications, electricity, water treatment plants, and transportation networks.

Knowledge-Based Industries: Development of educational institutions, research centers, and technology hubs to foster innovation and attract talent.

Key Technologies Utilized

KEC employs advanced technologies in urban planning, construction, and infrastructure development to ensure sustainability and efficiency. This includes smart city technologies, renewable energy solutions, and state-of-the-art telecommunications networks.

Primary Markets or Conditions Targeted

KEC targets both local and international markets, aiming to attract investors, businesses, and residents interested in a modern, knowledge-driven urban environment. The city is strategically located to serve as a hub for pilgrims visiting Madinah, offering facilities and services that cater to their needs.

Financials and Funding

Funding History

KEC has undergone multiple funding rounds to support its development projects. The company has engaged in post-IPO debt financing, with notable investors including Al-Rajhi Bank, Riyad Bank, and The Saudi Investment Bank. Specific details regarding the total funds raised and the exact amounts from each funding round are not publicly disclosed.

Utilization of Capital

The capital raised is primarily utilized for the development of infrastructure, construction of residential and commercial properties, establishment of knowledge-based industries, and other projects that contribute to the growth and sustainability of the Knowledge Economic City.

Pipeline Development

Key Projects

Al-Madinah al-Munawwarah Gate: The first project in the Kingdom to be linked to a Haramain High-Speed Railway station, comprising recreational and commercial centers, a transport station, and a tower-shaped hotel over an area of approximately 60,000 square meters.

Al-Alya'a: A housing development spanning 269,000 square meters, consisting of residential and commercial units, roads, services, walkways, recreational centers, and a central park of approximately 42,000 square meters.

Al-Madinah Hub: An integrated center containing a residential tower, hotel tower, commercial complex, spacious garden, recreational centers for different age groups, spa and sports club, pedestrian parks, restaurants, and modern cafes.

Dar al-Jewar: A gated residential community with a total area of 586,000 square meters, comprising pathways, gardens, mosques, children's play areas, courts, and ceremony halls.

Islamic World District Project: Consists of clinics, shopping and recreation areas, budget hotel services, and outdoor squares, aiming to provide inclusive services to visitors and pilgrims.

Anticipated Milestones

While specific timelines for each project's completion are not publicly disclosed, KEC continues to progress with these developments, contributing to the urban and economic growth of Madinah.

Technological Platform and Innovation

Proprietary Technologies

KEC integrates smart city technologies, renewable energy solutions, and advanced telecommunications networks into its developments to ensure sustainability and efficiency. These technologies are designed to enhance the quality of life for residents and visitors while promoting environmental sustainability.

Significant Scientific Methods

The company employs advanced urban planning methodologies, including Geographic Information Systems (GIS) for spatial analysis, Building Information Modeling (BIM) for construction management, and data analytics for infrastructure optimization. These methods facilitate efficient project execution and resource management.

Leadership Team

Executive Profiles

Mohammad A. Al-Mubarak: Chief Executive Officer (CEO)

Mr. Al-Mubarak has extensive experience in real estate development and urban planning. Under his leadership, KEC has advanced its mission to develop a world-class destination in Madinah.

Marwan Fahmie: Chief Operating Officer (COO)

Mr. Fahmie oversees the daily operations of KEC, ensuring that projects are executed efficiently and align with the company's strategic objectives.

Key Contributions

The leadership team has been instrumental in securing funding, establishing strategic partnerships, and driving the development of key projects within the Knowledge Economic City. Their combined expertise in real estate development, infrastructure, and urban planning has been crucial to the company's progress.

Competitor Profile

Market Insights and Dynamics

The real estate development sector in Saudi Arabia is experiencing significant growth, driven by the government's Vision 2030 initiative, which aims to diversify the economy and promote urban development. This growth presents opportunities for companies like KEC to lead in developing knowledge-based industries and smart city solutions.

Competitor Analysis

KEC's primary competitors include other real estate development companies operating within Saudi Arabia, such as Jabal Omar Development Company and Makkah Construction and Development Company. These companies focus on large-scale developments and have established a presence in the market. However, KEC's unique focus on knowledge-based industries and its strategic location in Madinah provide it with a competitive edge.

Strategic Collaborations and Partnerships

KEC has engaged in various collaborations and partnerships to enhance its development projects. Notably, the company has signed Memoranda of Understanding (MoUs) with organizations such as Cisco and CompTIA to provide access to networking technologies and ensure internationally recognized IT qualifications for its workforce.

Operational Insights

KEC's strategic considerations include leveraging its unique location in Madinah to attract pilgrims and investors, differentiating itself through the integration of smart city technologies, and focusing on sustainable development practices. The company's emphasis on knowledge-based industries and high-quality infrastructure positions it favorably in the competitive landscape.

Strategic Opportunities and Future Directions

KEC aims to expand its development projects, attract international investors, and establish itself as a leading hub for knowledge-based industries in the region. The company's strengths in real estate development, infrastructure, and strategic partnerships provide a solid foundation for achieving these objectives.