Saudi developer Madina Knowledge Economic City (KEC) has received its approval from the Ministry Commerce and Industry to sell 30 percent of its shares in an initial public offering. The ministry approved setting up the firm with a total capital of SR3.393 billion ($904.8 million), or 339.3 million shares. On behalf of himself and the Board of Directors, Sheikh Ibrahim Bin Mohamed AlEissa, KEC chairman, said: “We are delighted with the ministry's approval and we are currently on schedule in our preparations to finalize the CMA required documentation for the shares floatation before the end of this year as per the company's plans.” KEC is the lead developer of a knowledge-based city within the holy city of Madina that aims at attracting investments worth up to SR30 billion and housing some 150,000 people, AlEissa said. Knowledge Economic City is among four economic cities announced by SAGIA and planned by the Kingdom to diversify its oil-based economy and create jobs for a rapidly growing Saudi population. “KEC will act as a cultural landmark serving visitors, as well as becoming a national icon for knowledge-based industrial development,” he added. The project hopes to spur the creation of knowledge-based industries which would include a hospitality segment, retail offering, commercial and business communities for the millions of pilgrims who visit Madina each year. KEC will offer a completely master-planned and connected environment like no other providing the necessary capabilities for a sustainable business and residential environment which will be adaptable to the technology changes of the future. “The city of 30,000 residential units, 1,200 shops and accommodation for 30,000 visitors located in the heart of Madina Al-Munawwarah will be developed over an area of 4.8 million square meters of a completely master-planned community and is projected to create 20,000 jobs”, AlEissa added.
