Knowledge Economic City Company announced a significant strategic move, revealing the signing of a SAR 150 million Sharia-compliant financing agreement with Banque Saudi Fransi. According to the company's official statement, published on the Saudi Stock Exchange (Tadawul), this financing will be allocated to vital infrastructure work for the "Islamic World Avenue" project, one of the city's most prominent development initiatives.
Project background and strategic importance
The Knowledge Economic City, located in Madinah, is a cornerstone of Saudi Arabia’s economic cities strategy and plays a pivotal role in achieving the goals of Vision 2030. The city aims to build a knowledge-based economy and attract investments in the technology, religious and cultural tourism, and education sectors. The “Islamic World Avenue” project stands as the crown jewel of this city, designed to be a world-class cultural, tourist, and commercial destination, leveraging its strategic location near the Prophet’s Mosque and the Haramain High-Speed Railway station.
Details of the financing and its expected impact
The financing secured by the company spans four years and will be utilized in accordance with the project's progress. The company has provided collateral for this financing, including mortgages on project land and promissory notes, reflecting the strong confidence of financial institutions in the project's economic viability and the company's vision. This financing represents a significant boost to the project, enabling the company to accelerate the development of essential infrastructure, including roads, utility networks, and public facilities, thus paving the way for subsequent phases of construction and development.
Economic and social impact
The “Islamic World Avenue” project is expected to have a multifaceted positive impact. Locally, it will contribute to creating thousands of direct and indirect job opportunities for the residents of Madinah and will boost local economic activity by stimulating the contracting, hospitality, and retail sectors. Nationally, the project directly supports the goals of Vision 2030, which aim to diversify national income sources, increase the capacity for pilgrims, and enrich their religious and cultural experience. Internationally, the project reinforces the Kingdom’s position as the beating heart of the Islamic world, offering a unique cultural destination that blends tradition and modernity, and showcasing the diverse history and cultures of the Islamic world to visitors from around the globe.
