Madinah’s record ADR and occupancy highlight a structural supply gap in faith-based tourism; Knowledge Economic City aims to bridge it with an integrated urban destination built for repeat visitation
Knowledge Economic City (KEC) in Madinah is emerging as one of Saudi Arabia’s most ambitious mixed-use destinations, designed to reshape how millions of visitors experience one of Islam’s holiest cities. Spanning 6.8 million sqm between the train station and just four kilometres from Al Masjid an Nabawi, KEC aims to combine spiritual journeys with world class hospitality, lifestyle and urban comfort.
KEC’s master plan, which has already received three international awards, is built around quality of life. It features 1 million sqm of greenery and 313 communities and neighbourhoods, creating an urban fabric that encourages walkability, relaxation and a sense of place for both visitors and residents.
Hospitality at the heart
We speak to Chairman of the Board, Amin Mohammad Shaker, who emphasises that KEC’s approach goes far beyond adding hotel rooms. Once fully developed over the next 15 to 20 years, the project will deliver 45,000 hospitality keys; 42,000 residential units; and 1 million sqm of commercial, retail, and entertainment space.
Madinah currently enjoys the highest ADR and occupancy rates in the region, reflecting a strong and sustained demand that far outpaces supply. With airport expansion and enhanced rail connectivity linking Madinah, Jeddah and Makkah, Shaker expects this gap to persist for the next 20–25 years, and KEC is positioning itself to help close it.
“Our goal,” he stresses, “is not just rooms. It’s lifestyle, destination, and experience - value for money that visitors will want to repeat year after year.”
Global brands, local experience
KEC is partnering with many of the world’s leading hotel operators. Among the brands already signed and at various stages of design and construction are Marriott, Ritz-Carlton, JW Marriott, Hyatt (including Hyatt Regency, Hyatt Place/House); and leading Far East brands such as Grand Austin.
These hotels are at different stages of design and construction, forming the core of a hospitality ecosystem that will serve a wide range of budget segments and travel profiles, from luxury pilgrims and family groups to long-stay visitors and business travellers.
In the coming weeks, KEC plans to announce a joint venture with a major international hotel operator, a move aimed at transferring global know-how into the local market. “We want the capability to run and operate hospitality at the highest level,” says Shaker, noting that KEC is deliberately building its own operational expertise, not just relying on external brands.
Cherished journey
For the two billion Muslims who aspire to visit Madinah, KEC’s goal is to turn a once in a lifetime trip into a repeatable, cherished journey.
Beyond hotels, the development integrates retail promenades and malls (around 100,000 sqm of retail coming online within the next 10 months); entertainment and cultural offerings; healthcare, with five major hospitals; education, including ten major schooling complexes; extensive parks and community spaces.
Shaker underlines that the project is about integration - hospitality connected with retail, entertainment, and culture - to deliver a holistic destination.
We are building something that should transcend generations.
A place that visitors remember
- and return to, again and again– Amin Mohammad Shaker
Modern meets heritage
KEC’s vision is to create a “modern Madinah” that remains firmly linked to its historic and spiritual legacy. The city’s rich architectural evolution and its 148 historical sites, currently being developed by the government, form a cultural backdrop to the new urban fabric.
“We are building something that should transcend generations,” says Shaker. “A place that visitors remember - and return to, again and again.”
In a city where spiritual significance is timeless, Knowledge Economic City is setting the stage for a new era of integrated, high-quality pilgrim tourism, one that matches Madinah’s sacred importance with a world-class visitor experience.