Knowledge City secures SAR 152M credit facility with SAIB

Knowledge Economic City (KEC) secured SAR 152 million in shariah-compliant financing from The Saudi Investment Bank (SAIB) to finish construction of its mixed-use development in Medina, the company said in a filing. The facility will cover the remaining infrastructure work on the project, which is part of Saudi Arabia's economic city program under Vision 2030.

The deal signals that Saudi banks remain willing to fund large-scale real estate projects tied to the kingdom's diversification push. Lenders have been competing for exposure to giga-projects and economic zones, and this credit line adds to a string of similar financings this year. It follows a credit renewal for Saudi Parts Center (1030.SR) from the same bank earlier this month.

KEC had been seeking a financing solution to complete the city's residential, commercial, and educational zones. The shariah-compliant structure means the facility avoids interest payments, aligning with the company's Islamic finance framework. SAIB did not disclose the margin or maturity in the statement.

The stock did not react sharply on the Saudi exchange on the day of the announcement. Trading volumes were in line with recent averages. The broader real estate sector has been supported by government spending on infrastructure and housing under Vision 2030, though individual project financing remains deal-specific.

KEC's project is one of several economic cities planned across the kingdom. The Medina development aims to attract knowledge-based industries and academic institutions. Completion of the funding removes a key near-term risk for the company, which had flagged construction delays in prior quarters. The company now expects to finish the remaining phases by late 2026, according to the filing.