Saudi-based Knowledge Economic City Company (KEC) and its subsidiary, Al-Gharaa International Real Estate Development Limited, have signed a framework agreement with GIB Capital, an asset management and investment firm, to establish a real estate investment fund (REIT) to develop the first phase of the mixed-use Islamic World District in Madinah.

The project’s first phase will cost 3.5 billion Saudi riyals ($933 million), comprising 5,061 hotel keys, 743 residential apartments and 24,000 square metres of retail space.

Islamic World District is located adjacent to the Haramain highspeed train station in Madinah. It will be developed as a Transit-Oriented Development (TOD) due to its connectivity to the train station through KEC’s Madinah Gate project.

In June, KEC awarded a contract worth SAR506.60 million ($135.03 million) to Alsaad General Contracting Company to execute electromechanical and finishing works at KEC Hub Mall.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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