ع
The Public Investment Fund detailed in a statement that its newly established Gulf Coast Development Company will transform the Al-Khafji coastline in Saudi Arabia’s Eastern Province into a vibrant urban center and premier residential and tourism destination. The project covers approximately 20 square kilometers and includes a 10-kilometer waterfront along the Arabian Gulf, capitalizing on the governorate’s strategic position bordering Kuwait to draw visitors and residents from Saudi Arabia and other Gulf states. This initiative responds to growing demand for tourism and housing options while supporting broader economic expansion in the northern reaches of the Eastern Province.
PIF’s announcement positioned the effort within its Urban Development and Livability ecosystem, introduced as one of six new ecosystems under the fund’s 2026-2030 strategy. The completed destination will feature eight residential neighborhoods offering more than 16,000 housing units together with around 1,400 hotel keys, complemented by commercial outlets, tourism attractions, educational institutions and dedicated boat marinas. Such elements are designed to foster an integrated community that promotes sustainable growth and improved quality of life for future inhabitants.
Development proceeds across three distinct phases, with the first slated for completion in 2030 and encompassing three neighborhoods that establish the project’s foundational infrastructure. Saad Al-Kroud, head of Local Real Estate Investments at PIF, said the company will capitalize on Al-Khafji’s cultural and logistical advantages. He added that the project will generate new opportunities for the region’s residents, upgrade the city’s infrastructure and deepen private sector partnerships that maximize value and deliver sustainable returns.
The Public Investment Fund pursues the venture in collaboration with private sector partners as part of its mandate to invest in real estate projects that create long-term value, expand economic opportunities and advance diversification across Saudi Arabia. Reuters reported that PIF’s gross assets under management totaled 3.396 trillion riyals at the end of 2025, with local investments accounting for 76 percent of that portfolio. The fund has increasingly directed resources toward infrastructure to reduce reliance on oil revenues while scaling back certain large-scale giga-projects.
Al-Khafji’s location offers seamless connectivity for regional travelers, a factor that Arab News noted will help stimulate both direct and indirect economic benefits for local communities through job creation and related activity. The development aligns with national tourism objectives that have already seen visitor numbers surpass 100 million, with a revised target of 150 million annual arrivals by 2030 under the National Tourism Strategy. PIF’s statement underscored that the new company will work to unlock the area’s potential through coordinated public and private investment.
