Knowledge Economic City (KEC), listed on the Saudi Exchange (Tadawul: 4310), returned to profitability during the first nine months of 2026, recording a net profit attributable to shareholders of SR 71.3 million, compared with a net loss of SR 26.7 million in the same period of 2025.
The company reported a 40.2% increase in nine-month revenue to SR 330.5 million, while gross profit surged 180.4% to SR 206.5 million. Accordingly, gross profit margin increased to 62.5%, compared with 31.2% in the corresponding period last year.
Q3 Net Profit Surges 253% to SR 99.7 Million
The third quarter was the main driver of the company’s return to profitability, with revenue nearly doubling year-on-year, rising 98.8% to SR 245.1 million.
Net profit attributable to shareholders reached SR 99.7 million, marking a 253% increase compared with SR 28.2 million in the third quarter of 2025. Gross profit margin also strengthened to 74.1%, up from 41.9% in the corresponding quarter last year.
The improved performance was primarily driven by the sale of a 13,049-square-meter land parcel for SR 169.6 million, recognized during the third quarter, in addition to SR 31.5 million in revenue generated by the group’s hotel operations, a new revenue stream introduced in 2026.
Revenue from residential units also recorded a strong recovery, increasing to SR 65.8 million during the third quarter, compared with SR 16.8 million in the second quarter, following the introduction of the new law permitting non-Saudis to own real estate.
Accumulated Losses Decline to SR 371 Million
Knowledge Economic City also strengthened its financial position, reducing accumulated losses to SR 371 million, representing 10.93% of capital as of September 30, 2026, compared with SR 442.3 million, or 13.04% of capital, as of December 31, 2025.
Equity attributable to shareholders increased to SR 3.03 billion, while cash and cash equivalents rose to SR 150.7 million.
Dr. Moath Al-Yahya, Chief Executive Officer of Knowledge Economic City, said the company’s return to profitability during the first nine months of 2026 reflects its progress in building a stronger and more resilient economic city.
He added that the company continues to create sustainable value and advance Madinah’s development through a flexible development model combining land sales, development partnerships, and real estate funds.
During the period, KEC signed a real estate development agreement with Al Rashed Real Estate for the Multaqa Residence project, a letter of intent with BSF Capital to establish a real estate fund for the Knowledge Gardens project, and a memorandum of understanding with Dar Almajed Real Estate (Almajdiah) and Capital Hill to develop a residential project within Knowledge Economic City.
These developments support the company’s strategy to deliver an integrated, world-class destination in Madinah and contribute to the objectives of Saudi Vision 2030.
