In a strategic move reflecting its commitment to expanding its educational services and developing the sector's infrastructure, Al-Muhafazah Education Company announced that it has received notification of the award of a long-term land lease agreement from Tatweer Buildings Company, the executive arm of the Ministry of Education's projects and wholly owned by the Public Investment Fund. The total value of the agreement is SAR 57.33 million, and it aims to develop the land, located in the Al-Jazirah district of Riyadh, to construct, equip, and operate a modern, integrated educational facility.
Investment contract details
Under the contract, Al-Muhafaza Education Company will lease a 19,104.26 square meter plot of land in a prime location in Riyadh. The contract extends for 25 years from the date of signing, providing long-term stability for the educational project. The agreement includes a two-year grace period during which no rent is due, to facilitate the construction and equipping of the educational building. The annual rent is SAR 2.01 million, with a periodic increase of 10% every five years, bringing the total rent for the contract period to SAR 57.33 million (excluding VAT).
In the context of the Kingdom's Vision 2030
This partnership between the private sector, represented by the Education Authority, and the public sector, represented by Tatweer Buildings, is a practical embodiment of the goals of the Kingdom’s Vision 2030 and the Human Capital Development Program. The Vision aims to raise the quality of education and expand private sector participation in the development and operation of educational facilities. Tatweer Buildings plays a pivotal role in this endeavor, working to provide innovative, safe, and stimulating learning environments that meet the latest international standards through effective partnership models that ensure sustainability and efficiency.
Importance and expected impact
Locally, this project is expected to help meet the growing demand for high-quality private education in Riyadh, a rapidly growing capital city. The new educational complex will provide an exemplary learning environment for students, enhance the options available to parents, and create new job opportunities in the construction and education sectors. Nationally, this contract strengthens investor confidence in the Saudi education sector and presents a successful model of public-private partnerships that can be replicated in other regions of the Kingdom, accelerating the development of educational infrastructure and contributing to the achievement of sustainable development goals.
