Knowledge Economic City (KEC) has welcomed the Saudi Government’s approval of the Executive Regulations governing real estate ownership by non-Saudis, alongside the designation of approved zones where such ownership will be permitted.

The regulatory development represents a significant milestone for Saudi Arabia’s real estate sector, creating a structured pathway for eligible international investors to acquire property within designated developments in Madinah.

As one of the approved developments, Knowledge Economic City is preparing to facilitate ownership opportunities for eligible international buyers as the implementation of the new framework progresses.

Read more-Property transaction tax for foreign buyers: Saudi issues clarification

The introduction of the regulations forms part of Saudi Arabia’s broader Vision 2030 strategy to enhance economic diversification, attract international capital and strengthen the competitiveness of the kingdom’s property market.

Regulatory framework creates greater clarity for international investors

The new ownership framework establishes defined legal procedures that will enable eligible non-Saudi individuals, companies and qualifying entities to own real estate within approved areas.

The government-regulated process is expected to provide greater transparency and confidence for international buyers by establishing clear requirements, formal procedures and a structured ownership journey.

The move reflects Saudi Arabia’s continued efforts to develop a more accessible and globally connected investment environment, while supporting sustainable growth across key economic sectors, including real estate.

For international buyers, particularly those seeking a long-term connection with Madinah, property ownership represents a combination of investment potential and personal significance.

The city holds unique importance for millions of Muslims worldwide, and the opportunity to establish a residential presence in Madinah represents a significant milestone for many families.

Knowledge Economic City advances integrated development vision

As demand grows for destinations that combine cultural significance with modern infrastructure, investors are increasingly evaluating developments that offer connectivity, quality amenities and long-term value creation.

Knowledge Economic City has been developed to meet these requirements through a large-scale, integrated urban model.

Located within the Haram boundary of Madinah, Knowledge Economic City extends across more than 6.8 million square metres and represents one of the Kingdom’s largest master-planned developments.

The project integrates residential communities with hospitality, retail, commercial, educational, healthcare and public facilities, creating a comprehensive urban environment designed to support residents, businesses and visitors.

The development benefits from strategic connectivity, with close access to key religious landmarks including the Prophet’s Mosque, Mount Uhud, Quba Mosque and Qiblatain Mosque.

It is also connected to major transport infrastructure through proximity to the Haramain High-Speed Railway Station and Prince Mohammad bin Abdulaziz International Airport, linking Madinah with Makkah, Jeddah and international markets.

Al Alyaa strengthens KEC’s residential offering

Knowledge Economic City’s residential portfolio builds on the successful delivery of Dar Al Jewar, an established residential community within Madinah.

The development’s next phase is represented by Al Alyaa, a contemporary residential neighbourhood designed to provide eligible buyers with access to a modern living environment within one of Saudi Arabia’s most strategically important cities.

Al Alyaa incorporates contemporary architecture, landscaped areas, community facilities and family-oriented amenities, creating a residential destination aligned with changing expectations among global property buyers.

Several homes within the development also offer views towards Mount Uhud, combining modern residential standards with the distinctive character and heritage of Madinah.

Structured ownership process to support international buyers

Following implementation of the new framework, eligible buyers will be able to complete the required government procedures before purchasing property through the official Saudi property platform.

Upon completion of the ownership process and handover procedures, buyers will receive their title deeds in accordance with the applicable regulations.

Knowledge Economic City’s sales team will provide dedicated support throughout the process, assisting buyers with guidance and information to ensure a smooth and transparent ownership experience.

The introduction of the framework is expected to further strengthen Madinah’s position as an attractive destination for international investment, particularly among buyers seeking opportunities that combine real estate value with cultural and lifestyle considerations.

International demand highlights growing market potential

Hazem Banna, acting CEO & CCO, Knowledge Economic City, said: “The approval of Saudi Arabia’s new ownership framework marks a defining moment for Madinah. For the first time, eligible international buyers will have a clear and transparent pathway to own property in this remarkable city.

“As one of the designated developments, Knowledge Economic City looks forward to welcoming buyers from around the world and offering a destination that brings together faith, lifestyle and long-term investment. Building on the success of Dar Al Jewar and now with Al Alyaa, we are creating communities where people can invest, belong and become part of Madinah’s future.”

Knowledge Economic City has reported growing interest and enquiries from key international markets, including the UK, USA, Egypt, Pakistan, Malaysia, Indonesia and countries across the GCC.

The interest reflects increasing international recognition of Madinah’s potential as both a residential destination and an emerging investment market within Saudi Arabia’s evolving real estate landscape.

Supporting Saudi Arabia’s long-term economic objectives

As the kingdom continues to advance its Vision 2030 objectives, the expansion of international property ownership opportunities represents another step towards building a diversified and globally integrated economy.

Knowledge Economic City remains positioned to support this transformation by providing an integrated development environment that aligns with investor expectations and contributes to Madinah’s future growth.

Through its residential, commercial and community-focused offerings, KEC aims to support the development of a sustainable real estate ecosystem while strengthening Madinah’s role as a destination for international residents and investors.

For more information about Al Alyaa and property ownership opportunities at Knowledge Economic City, visit www.madinahkec.com or contact the Knowledge Economic City Sales Centre.

Standard Chartered has launched a new Asia Pacific-focused multi-asset investment fund under its Variable Capital Company (VCC) platform, expanding its wealth management offering for high-net-worth clients in the UAE and other key international markets.

The Signature Select APAC Allocation Plus fund will be managed by BlackRock as sub-manager and is designed to provide investors with diversified exposure to Asia Pacific through a single investment solution spanning equities, fixed income and liquid alternatives.

The fund will initially be available to Accredited and Professional Investors across Standard Chartered’s Priority, Priority Private and Private Banking segments in Hong Kong, Singapore, the UAE, Jersey, Malaysia, Kenya and Nigeria, with additional markets expected to follow.

The launch comes as Standard Chartered sees growing demand from UAE-based investors for globally diversified portfolios that provide exposure to long-term structural growth opportunities while helping improve resilience across market cycles.

Ayesha Abbas, managing director and head of Affluent and Wealth Solutions, Deposits and Mortgages, EMEA & UAE at Standard Chartered, said: “The UAE continues to attract globally mobile investors and entrepreneurs who are increasingly looking beyond traditional geographic allocations in pursuit of long-term growth opportunities. Asia Pacific remains one of the world’s most dynamic investment regions, underpinned by structural growth trends, innovation and evolving consumer demand. Through the launch of the Signature Select APAC Allocation Plus fund, we are providing our clients in the UAE with access to a professionally managed, diversified multi-asset solution that helps them participate in these opportunities while maintaining a disciplined approach to portfolio construction and risk management.”

Managed using BlackRock’s Multi-Asset Strategies & Solutions platform, the portfolio will dynamically allocate capital across Asia Pacific asset classes, combining systematic equity strategies with actively managed fixed income investments to generate diversified returns.

Sumeet Bhambri, global head of Advisory and Managed Investments, Wealth Solutions at Standard Chartered, said the launch further strengthens the bank’s VCC platform by providing clients with institutional-quality investment strategies designed to navigate increasingly complex market conditions.

Andrew Landman, deputy head of Asia-Pacific and head of Asia Pacific Wealth at BlackRock, said Asia Pacific continues to offer compelling opportunities for active investors, supported by strong economic growth prospects and attractive valuations across parts of the region.

The new strategy becomes the eighth sub-fund launched under Standard Chartered’s VCC platform since its establishment in June 2024, and the third fund introduced by the bank in 2026.

The VCC platform was created to combine the expertise of global asset managers with Standard Chartered’s in-house investment specialists, enabling the bank to offer exclusive, professionally managed investment solutions to its wealth management clients as it continues to expand its international private banking and affluent business.

The Middle East is expected to record the world’s second-highest construction cost inflation by 2027 as surging investment in AI infrastructure, data centres and digital projects intensifies demand for skilled labour across the region, according to Turner & Townsend’s latest Global Construction Market Intelligence report.

The Middle East’s construction market is set to remain under pricing pressure over the next two years as governments and private investors accelerate spending on AI infrastructure, despite a stabilising global cost environment.

According to Turner & Townsend’s 17th annual Global Construction Market Intelligence report, construction cost inflation in the Middle East is forecast to reach 5.1 per cent in 2027, making it the second-highest globally behind Africa’s 7 per cent. The report suggests that while global construction cost inflation is expected to plateau, regional markets will continue to face upward pressure driven by labour shortages, energy costs and strong demand for technology-led projects.

The report highlights that the rapid expansion of AI infrastructure is reshaping construction priorities worldwide, with data centres now the most sought-after asset class for contractors. Industrial and logistics developments rank second, while renewables and clean energy are also seeing a significant increase in demand in 2026.

For the Middle East, where countries including the UAE and Saudi Arabia are investing heavily in AI ecosystems, hyperscale data centres and digital infrastructure, the trend is expected to keep specialist contractors in high demand while placing additional strain on workforce availability.

Globally, more than 70 per cent of the 112 markets surveyed reported tightening or overstretched contractor capacity for data centre developments. At the same time, 87 per cent cited shortages in specialist mechanical, electrical and plumbing (MEP) trades—critical skills required for delivering advanced technology facilities.

The report notes that labour availability has become the primary driver of construction cost escalation worldwide, overtaking materials and broader supply chain disruptions. Around 71 per cent of markets now report labour shortages, reflecting the growing challenge of sourcing skilled workers as AI-related construction activity accelerates.

Although Turner & Townsend expects global construction cost inflation to rise only modestly from 4.2 per cent in 2025 to 4.5 per cent in 2026 before flattening in 2027, it warns that the Middle East remains exposed to energy market volatility stemming from regional geopolitical tensions.

The report says fluctuations in oil prices, higher freight costs, petrochemical input prices and potential disruption to key shipping routes could create additional cost pressures for construction projects across the region.

Stephanie Marshall, managing director, real estate cost management at Turner & Townsend, said the global construction landscape is being reshaped by AI-led investment. “The global construction market is shifting and new dynamics are reshaping the key drivers of cost performance. Demand is increasingly uneven and concentrated on AI-driven sectors like data centres, while broader labour constraints, supply chain volatility and geopolitical risk are becoming more pronounced.”

Marshall added that while AI presents significant opportunities for job creation, the industry faces a growing skills challenge. “There is a very real risk that growth in the pool of skilled labour needed to build data centres won’t keep up with demand. In construction, AI has the potential to be a force for good in terms of job creation, but only if the right resources are put in place to support it.”

She also noted that the impact of the conflict in the Middle East on construction costs is likely to be indirect and uneven, varying according to local supply chains, energy dependence and project type.

The report further found that AI is becoming increasingly important during procurement, with 66 per cent of markets reporting that AI capability now plays a greater role in tendering and client discussions than it did a year ago, signalling that digital expertise is becoming a competitive differentiator for contractors.

An Indian investigation found that Mumbai international airport’s duty-free shops run by billionaire Gautam Adani’s business group breached the law by selling nicotine pouches, which the government considers a public health hazard, according to documents from the investigation.

Adani denies wrongdoing and is asking judges to declare that a law covering drugs and cosmetics does not apply to duty-free shops and nicotine pouches, according to court papers reviewed by Reuters. Lawyers say the case could set a precedent on how India regulates sales at such outlets and a government win could block sales of one of the world’s fastest-growing nicotine products in India’s airports.

India banned e-cigarettes and approved certain nicotine replacements like patches and chewing gums following a registration process under the Drugs and Cosmetics Act. Nicotine pouches remain illegal and unapproved.

The Indian government says tobacco kills 1.35 million people each year in India. A government study in June called nicotine pouches “a new and largely unregulated public health concern”, with widespread illegal sales and consumption among people aged 18 to 40.

After receiving complaints from anti-nicotine group Mothers Against Vaping, India’s drug department inspected duty-free shops at Mumbai’s international airport in March and found imported nicotine pouches were being sold in the departure zone without the necessary approvals, government documents show.

“Nicotine pouches also fall under the definition of a drug … a valid registration certificate and import license are mandatory,” an assistant drugs controller wrote in an April 2 letter to the airport’s customs authority, attaching an “investigation report”.

The government asked Mumbai Travel Retail, a joint venture led by Adani with Dubai’s Flemingo, to discontinue sales of nicotine pouches and seek approvals, government letters show.

Adani did not respond to Reuters queries ahead of the story’s publication. Late on Wednesday, its spokesperson said in an email that the characterisation of “the matter as a ‘breach of law’ is premature and legally unsustainable”, adding that Mumbai Travel Retail has “challenged the regulatory interpretation through judicial review.”

“International passengers arriving in India may lawfully carry nicotine pouches purchased overseas for personal consumption,” the Adani statement said. “Yet the sale of identical products through an international duty-free channel has been treated differently. This apparent inconsistency forms part of the legal challenge.”

Flemingo and the Indian health and customs authority did not respond to requests for comment.

Selling a drug without a license could draw a prison term of at least three years and a fine of at least 100,000 rupees ($1,000) or three times the value of the drugs confiscated, whichever is higher.

Reuters is first to report the details of the investigation into Adani sales and its court challenge in Mumbai.

Adani’s firm has told authorities the shops in the international departure area conduct business “beyond the customs frontiers of India” and are outside the reach of domestic regulations, its non-public High Court filing shows.

Asked about the Adani group’s point, Murali Neelakantan, former general counsel at Indian drugmakers Cipla and Glenmark Pharmaceuticals, told Reuters: “If a murder occurs in the store, will Indian police have no powers to arrest? They will have … Can (the store) sell guns or ammunition? No.”

The Adani statement responded: “Firearms are prohibited from duty free retail world over because they pose an inherent threat to aviation safety. Drawing a parallel between firearms and regulated nicotine products has no bearing on the legal issues before the Court.”

On June 24, judges in Mumbai’s High Court said “no coercive action” should be taken on the existing stock of pouches at Mumbai’s duty-free shops, scheduling the case for a July 14 hearing.

Adani runs eight airports in India and is targeting an $11bn expansion that includes a bet on duty-free offerings. At Mumbai’s international airport, it runs more than 30 duty-free shops.

In court, Adani said nicotine pouches “are not a drug” and are a “recent innovation” that was not anticipated by existing tobacco control laws, documents show.

Since August, Adani’s firm imported Philip Morris’ PM.N Zyn nicotine pouches in various flavours worth more than $29,000, and the White Fox brand from Swedish Smokeless Solutions worth $7,700, customs records showed. Those companies did not respond to Reuters queries.

Philip Morris says Zyn’s US sales doubled last year from 2023. The June Indian government study said both Zyn and White Fox were being sold by Indian vendors illegally.

Separately, Flemingo Dutyfree has told the High Court it operates shops at international seaports — including in Mumbai — and fears similar actions as it was “in the process of stocking” nicotine pouches, documents show.

Seeking licenses for nicotine pouches will compel suppliers to withdraw them from the market, making “the duty free industry in India unattractive to passengers,” it said.

Pakistani rescuers found the wreckage of a cargo plane in a deep-sea search operation on Wednesday, 12 hours after it went missing off the coast of Karachi, with efforts underway to find the five crew members who were on board, authorities said.

The wreckage of the K2 Airways Boeing 737 was recovered 53 nautical miles (98 km) south of Ormara port, the Pakistan Airports Authority said.

The Pakistan Navy and Pakistan Maritime Security Agency deployed “various air and sea borne assets” to locate the remains, it said, adding that the search operation was continuing to find the crew members.

Read more-Update: Pakistan confirms K2 Airways cargo plane crash off Karachi

Prime Minister Shehbaz Sharif had directed authorities to speed up the search for the 27-year-old converted freighter, which went missing in the Arabian Sea after reporting a navigational system problem.

K2 Airways, the plane’s operator, said the crew comprised two pilots, two engineers and one support staffer. Authorities have made no official declaration on their status, although Sharif expressed his “heartfelt condolences” to their families.

The plane may have crashed into the sea southwest of Karachi after a series of sharp altitude changes before a steep final descent, according to flight-tracking service Flightradar24.

Authorities had launched a coordinated search-and-rescue operation at sea through various agencies, the airports authority said. K2 Airways said it was cooperating with the Pakistan Civil Aviation Authority and other government agencies. Boeing has not yet commented.

The plane reported a navigational system issue at 9:18pm. Pakistan Standard Time (1618 GMT) on Tuesday while flying towards Karachi from Sharjah in the UAE, the airports authority said.

Plane descended rapidly

Local air traffic control tried to guide it, but three minutes later radar systems showed the plane descending rapidly and communication was lost, the authority said. The flight was about 155 nautical miles (287 km) west of Karachi at the time, according to the statement.

The final minutes of Flightradar24’s tracking data appeared chaotic, showing the plane plunging about 5,000 feet in less than a minute before soaring about 6,000 feet in 30 seconds and then entering a catastrophic dive from 36,550 feet.

The last transmitted data point placed the aircraft at 1,100 feet above sea level, with a vertical rate of minus 22,400 feet per minute, about 400 kilometres per hour, an extremely steep and abnormal rate of descent.

The missing aircraft is one of Boeing’s decades-old 737-400s, two generations older than the 737 MAX that has been involved in a safety crisis. It uses engines made by CFM International, jointly owned by GE Aerospace and France’s Safran.

US safety expert and former commercial pilot John Cox said in an interview that flight-tracking data available so far suggested the crew appeared to be struggling with the airplane for unknown reasons.

“It is possible, in the last portions of it, that the airplane was stalled and descending at a very, very high rate,” said Cox, who has experience flying the 737-400.

Air crashes are typically caused by multiple factors, and investigations can take at least a year to complete.

Authorities in Pakistan, which is leading the probe under international rules, have not said whether they have recovered the plane’s “black boxes” that provide crucial data.

The US National Transportation Safety Board said it had appointed an accredited representative to assist Pakistan in the investigation along with technical advisers from Boeing, GE Aerospace and the Federal Aviation Administration.

The K2 Airways jet was first delivered as a passenger plane to Russia’s Aeroflot in 1999 and was converted to a freighter in 2012, according to Flightradar24. It is K2 Airways’ only aircraft and entered service with the carrier in 2024. Its previous flight was on June 28, according to Flightradar24 data.

The incident would be Pakistan’s first fatal crash since 2020, when a Pakistan International Airlines Airbus came down short of the runway in Karachi, killing 97 people.