Saudi Arabia’s Knowledge Economic City (KEC) has partnered with Kaden Investment Company to develop a mixed-use project in Madinah, with an estimated gross floor area of approximately 229,117 square metres. The project, named Multaqa Al Madinah 2, will be constructed on a 92,043 square metre plot located immediately north of the first phase of the Multaqa Al Madinah development, as reported by ME Construction News.
The development is set to include around 1,527 residential units distributed across three residential zones, alongside commercial and office spaces that will offer a net leasable area of about 31,108 square metres. Additional features will encompass parking, recreational facilities, service amenities, and landscaping.
KEC and Kaden plan to finance the project through a closed-ended real estate investment fund regulated by Saudi Arabia’s Capital Market Authority. Under this structure, KEC will contribute the land as an in-kind asset and will hold 75% of the fund units, while Kaden will provide a cash contribution and retain the remaining 25%. Kaden will also serve as the development manager for the project.
The land for the project has been initially valued at approximately $184.6 million, with the total equity required estimated at around $222 million. KEC anticipates receiving $18 million in cash and fund units valued at about $166.3 million once definitive agreements are signed, pending regulatory approvals and the completion of the land transfer.
The residential units are intended for sale, including options for off-plan sales during the construction phase. The commercial and office components will be developed for lease and operation, with plans for eventual sale once stable occupancy and operations are achieved.
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