Knowledge Economic City (KEC) announced that it signed - on July 14, 2019 - a cooperation agreement with the Doyof Al Rahman Program, which is one of the Kingdom's Vision 2030 programs, which was opened by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud.
The agreement aims to share the experiences of both parties and to take advantage of their potential to achieve their mutual interests. The KEC will benefit from enhancing its investments, supporting existing development projects, creating new investment opportunities of high standards, and attracting more investors to develop these projects. In addition to facilitating procedures for the arrival of more pilgrims, and attracting operating companies through new investment opportunities, in addition to improving the experience of pilgrims by enriching the religious and cultural aspects, as well as providing high-quality services.
The field of cooperation between the two parties includes that the KEC shall take into account the requirements of the program for the Doyof Al Rahman Program when preparing its project plans related to the scope of the service of the guests of Rahman, as well as work to keep pace with the aspirations of the Doyof Al Rahman Program through attracting new investors, providing new investment opportunities, serving pilgrims by providing commercial and hotel services, and creating a distinctly urban environment in general, especially for the area adjacent to the railway station, where designs are being made for the components of the "Madinah Gate" of 300 hotel rooms and three hotels in the first stage. Besides, the commercial markets are linked to the Al-Harameen High-Speed Railway, and the transportation station is linked with the railway station. Moreover, within the framework of the agreement, the KEC is currently conducting preliminary studies.
Initial studies of the Islamic World district are currently being completed to be linked with other projects in the region, especially the vicinity of the railway station, through architectural and urban designs that take into account the diversity of cultures so that the project shall be developed in stages that include all areas of the outer squares, such as clinics and shopping areas, in addition to economic hotel services that serve the total capacity of the hospitality sector, which amounts to 1,600 hotel rooms in the first stage, reaching 16,000 rooms for all stages. This strategic objective, serving the guests of Rahman, serves to cover the shortfall in the number of hotel rooms in Medina according to Vision 2030, which aims to increase the number of pilgrims and visitors to the city of the Messenger, peace be upon him, to 30 million visitors a year.
It is expected that the KEC, through its investments in developing multiple stages of the project in cooperation with the Program, will add about 15,000 direct and indirect jobs opportunities in the fields related to the scope of the Program, which provides programs and studies that contribute to the implementation of KEC's projects, supporting the scientific research and development, and investing along with the KEC and contributes to the holding of conferences and seminars, workshops, and many other services to support the interests of both parties.
The agreement was signed under the patronage of His Royal Highness Prince Faisal bin Salman bin Abdulaziz Al Saud, Governor of the Medina region, in the presence of His Excellency Dr. Muhammad Salih bin Taher Bintain, the Minister of Hajj and Umrah and the Member of the Economic Development Board and the Doyof Al Rahman Program, and His Excellency Mr. Amin bin Muhammad Shakir, Chairman of the Board of Directors of the KEC.
The duration of the agreement is two years from the date of its signing, and it will be renewed automatically for similar periods unless one of the parties desires otherwise. There is no related party between the two parties, neither a financial impact of the agreement on the financial statements of the company at present.