The latest financial results show significant developments, with Knowledge Economic City's losses by 66.4% compared to the fiscal year 2025. Net losses reached approximately SAR 34.86 million, compared to losses of SAR 20.95 million in the previous year. This announcement, made through the Saudi Stock Exchange (Tadawul), highlights the financial challenges the company faces as it strives to implement its major strategic projects.
Reasons for the high losses in Knowledge City and details of its financial performance
The company explained in its official statement that the increase in net loss during 2025 compared to the previous year was primarily due to a significant rise in operating expenses. Despite these losses, the financial indicators showed other positive aspects; sales jumped by 101% compared to the previous year. This exceptional revenue growth is attributed to the substantial increase in the number of units sold in one of the company's residential projects. Furthermore, in September 2025, the company successfully completed the sale of a plot of land for SAR 37.6 million, which contributed to providing cash flow to support its operational and development activities.
Historical context of the Knowledge Economic City project
Knowledge Economic City Company was established as one of the most prominent development projects in the Kingdom of Saudi Arabia, specifically in Medina. Since its inception in 2006, the primary objective has been to build a fully integrated smart city based on knowledge-based industries, technology, and education, alongside providing a sophisticated residential and commercial environment. The company is a major contributor to the development of the region's real estate and tourism infrastructure, capitalizing on Medina's religious and historical significance, which attracts millions of visitors annually. Despite the financial challenges posed by market fluctuations and the substantial operating expenses required for such mega-projects, the company continues to move forward with completing its planned development phases.
Economic impact and real estate market expectations
The financial performance of Knowledge City Company is of paramount importance both locally and regionally. Locally, these results reflect the state of the real estate sector and the challenges associated with operating and development costs in large-scale projects. However, the doubling of residential sales indicates strong and sustained demand for quality properties in Madinah, bolstering confidence in the Saudi real estate market as a whole. Regionally, the continued investment in infrastructure projects aligns with the objectives of Saudi Vision 2030, which aims to diversify income sources and reduce reliance on oil. The company's completed projects are expected to create new job opportunities, attract foreign investment, and boost religious and cultural tourism, thus mitigating current losses and establishing sustainable profitability in the foreseeable future.
