KEC ends deal with int’l school developer, seeks replacement

Logo of Knowledge Economic City (KEC)

Knowledge Economic City (KEC) announced today, July 2, the termination of its agreement with Knowledge Tree Co., a subsidiary of Mounes Alshaib Group (MOBCO).

The deal had aimed for the development of a model K-12 educational complex offering accredited international curricula for boys and girls.

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In a statement to Tadawul, the company explained that the termination resulted from Knowledge Tree’s failure to fulfill its contractual obligations and meet project deadlines, despite multiple efforts by KEC to urge the project's completion.

KEC plans to claim rent payments for the period between the land handover and the termination date, which had initially been granted as a grace period to facilitate project development. In addition, the company intends to seek compensation by claiming the execution guarantee’s value.

The company also stated that negotiations with a top local investor to take over the project and build a top-notch educational complex are currently in the final stages.

According to Argaam's data, KEC and MOBCO had inked an agreement in April 2021 to develop international schools in the city.

The agreement had granted MOBCO a 20,000-square-meter plot in the knowledge zone under a 25-year lease, renewable for another 25 years.

In return, KEC would receive a percentage of total revenue generated from all licensed activities carried out by the tenant.