Saudi Arabia's Knowledge Economic City Co. (KEC), a leading master developer, has signed a pair of agreements valued at $78 million to propel the development of its Al-Alya mixed-use project. These deals pave the way for the delivery of 396 residential units within the project's first phase.
The contracts were inked with Elkhereiji Commerce and Contracting Co. and encompass a range of construction works. The initial agreement entails the complete construction of additional residential buildings in the first phase of Al-Alya. This includes a cluster of four buildings offering 132 apartments in various sizes, with a total value of $117.5 million excluding value-added tax (VAT).
The second contract focuses on the execution of essential tasks to finalize the constructed buildings. This includes electromechanical works, finishing touches, landscaping, and overall site coordination for a group of eight residential structures. These buildings will provide 264 apartments and hold a combined value of $171.13 million.
KEC's announcement regarding the signed contracts was made through official filings on the Saudi Stock Exchange, Tadawul. The company's progress on the Al-Alya project signifies its commitment to delivering a comprehensive mixed-use development that caters to a variety of residential needs.
The details surrounding the project advancements were well-received by investors. KEC's stock price experienced a positive shift following the announcement, reflecting growing confidence in the project's potential and the company's ability to deliver it successfully.
News of KEC's substantial investment in Al-Alya is expected to generate further interest in the project. The addition of nearly 400 new residences is likely to attract potential residents seeking a modern and well-equipped living space within a meticulously designed mixed-use development.
The project's progress is anticipated to contribute to the economic development of the region by creating job opportunities in the construction and real estate sectors. Additionally, the influx of new residents is expected to stimulate the demand for various goods and services, fostering the growth of local businesses.
KEC's commitment to the Al-Alya project signifies its confidence in the Saudi Arabian real estate market and the nation's economic diversification efforts. The project's successful completion has the potential to serve as a model for future mixed-use developments in the region.