Knowledge Economic City returned to profitability during the first nine months of 2026, recording a net profit attributable to shareholders of SR 71.3 million. The master developer had posted a net loss of SR 26.7 million during the same period in 2025. In addition, total revenue for the nine-month period increased 40.2% year-on-year to SR 330.5 million, up from SR 235.8 million, while gross profit reached SR 206.5 million.
Third-Quarter Financial Growth
The third quarter of 2026 served as the primary driver of the company’s financial turnaround. Quarterly revenue rose 98.8% to SR 245.1 million compared with SR 123.3 million in the third quarter of 2025. Consequently, net profit attributable to shareholders for the quarter increased 253.0% to SR 99.7 million, compared with SR 28.2 million a year earlier. Operating profit for the quarter climbed to SR 139.7 million from SR 25.1 million, reflecting solid operational momentum in the national economy.
Revenue Drivers and Real Estate Regulations
Financial gains were driven largely by the sale of a 13,049-square-metre land parcel for SR 169.6 million recognized during the third quarter. The company also registered SR 31.5 million in revenue from group hotel operations, which represents a new revenue stream launched in 2026. Furthermore, residential unit sales increased significantly to SR 65.8 million, up from SR 16.8 million in the second quarter of 2026, following regulatory reforms allowing property ownership by non-Saudis. This growth in hospitality operations also supports local tourism infrastructure across Madinah.
“Our return to profit in the first nine months of 2026 reflects the progress we are making in building a stronger and more resilient Knowledge Economic City. Through a flexible development model that combines land sales, development partnerships and real estate funds, we are creating sustainable value while advancing the development of Madinah.”
Dr. Moath Al-Yahya, Chief Executive Officer of Knowledge Economic City
Strengthening Knowledge Economic City Balance Sheet
Knowledge Economic City improved its capital structure through the reduction of accumulated losses. Total accumulated losses dropped to SR 371.0 million, representing 10.93% of capital as of 30 September 2026, compared to SR 442.3 million or 13.04% of capital at year-end 2025. Meanwhile, total equity attributable to shareholders rose to SR 3,031.8 million, and cash reserves reached SR 150.7 million. These balance-sheet improvements accompany ongoing developments in connected urban spaces and smart devices used in real estate management.
Project Partnerships and Future Outlook
During the period, the developer entered multiple strategic agreements to expand its commercial footprint. The firm signed a development contract with Al Rashed Real Estate for the Multaqa Residence project, alongside a letter of intent with BSF Capital to establish a dedicated investment fund for the Knowledge Gardens project. It also signed a memorandum of understanding with Dar Almajed Real Estate (Almajdiah) and Capital Hill for a residential scheme within its masterplan, supporting Saudi Vision 2030 targets.
