King Saud University Signs Long-Term Investment Lease With Diriyah Company For Phase Two Development

King Saud University, through Riyadh Valley Company, signed a long-term lease agreement with Diriyah Company to support large-scale development and investment cooperation. The deal linked a major academic institution with a national development company and targeted sustainable urban growth, financial returns for the university, and broader economic benefits aligned with Saudi Vision 2030.

The agreement was signed in the presence of Minister of Education and King Saud University board chair Yousef Al-Benyan. Acting president and Riyadh Valley Company chairman Dr. Ali Masmali signed on behalf of King Saud University, while Diriyah Company represented the development side responsible for delivering the planned urban project.

Under the lease terms, Diriyah Company obtained the right to use 552,000 square metres of King Saud University land for 70 years. The site formed part of Phase Two of the Diriyah Project, known as D2, and its development followed the approved master plan for the wider Diriyah Project area and surrounding districts.

Project planners indicated that the leased land would be integrated within Phase Two to create a cohesive urban district. The development objectives included supporting mixed-use spaces, knowledge-related activities, and infrastructure that matched the Diriyah Project master plan, while ensuring the university’s land contributed to urban and economic development goals.

Key figures in the agreement are shown below, reflecting the scale and duration of the Diriyah Project partnership between King Saud University and Diriyah Company.

The arrangement aimed to maximise King Saud University assets through a sustainable investment model linked to national priorities. It also sought to support the knowledge economy by connecting a university investment arm with a national development entity, increasing cooperation between academic research, education activities, and major development projects managed by Diriyah Company.

Another objective was to strengthen integration between the academic sector and large urban initiatives. This integration was expected to contribute to Saudi Vision 2030 targets, especially in urban development, economic diversification, and knowledge-based activities, while reinforcing the role of King Saud University as an active partner in national projects.

Diriyah Project statements from King Saud University and Diriyah Company

Al-Benyan stated that "the agreement reflects the university’s strategic approach to maximizing the impact of its assets, activating long-term, high-quality partnerships with major national projects, enhancing its financial sustainability, reinforcing its role as an active partner in national development, and aligning with the university’s future ambitions on its path toward global excellence." This statement linked the lease to King Saud University long-term strategy.

Dr. Masmali noted that "the agreement represents a qualitative leap in investment, ensures the university’s financial sustainability, maximizes its assets, and achieves ambitious developmental objectives for both parties." The comments underlined how the deal was designed to balance financial returns with broader development results for King Saud University and Diriyah Company.

Diriyah Company Group chief executive Jerry Inzerillo said that "the agreement represents a strategic step in the development of Diriyah and reflects the integration of efforts between development entities and academic institutions to enable sustainable urban projects with long-term economic and knowledge value." The statement highlighted the expected impact of the project on Diriyah’s future growth.

Through this agreement, King Saud University and Diriyah Company established a long-term partnership that linked university-owned land with a national urban project. The arrangement combined financial sustainability for the university, support for the knowledge economy, and progress on Saudi Vision 2030 objectives, while embedding academic participation within the continued development of Diriyah.

With inputs from SPA