On July 28, 2026, Knowledge Economic City ("KEC") announced the signing of a Letter of Intent ("LOI") dated July 27, 2026, jointly with its subsidiary Algharraa International Real Estate Development Company Limited, alongside BSF Capital (proposed fund manager) and Fourmen Investment Company, to establish a closed-ended private real estate investment fund regulated by the Capital Market Authority for the development of the Knowledge Gardens project in Madinah. The LOI is valid for 120 days, during which parties will finalize definitive agreements, with the proposed fund expected to have a four-year term (three years for development and one year for marketing and exit), extendable by two additional one-year periods. Upon execution of definitive agreements, KEC and Algharraa are expected to jointly receive approximately SAR 800 million in cash, with the remaining land value — estimated at approximately SAR 1.66 billion in total — contributed as an in-kind investment representing approximately 39.9% of the fund's equity. The indicative ownership structure comprises 46.2% for Fourmen Investment Company, 39.9% for KEC and Algharraa, and 13.9% for other investors, with total estimated project costs of approximately SAR 7.5 billion and projected total revenues of approximately SAR 10.2 billion, covering a mixed-use development spanning approximately 332,054 square meters net land area with around 4,198 residential units, 183 serviced apartments, a 450-key hotel, and approximately 80,000 GFA square meters of commercial and office space.

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