Saudi Sovereign Wealth Fund launches company to develop coastal destination in Al Khafji
Saudi Arabia’s Public Investment Fund (PIF) announced on Monday the launch of “Gulf Coast Real Estate Development Company,” aimed at developing an integrated tourist and residential destination along the coastline of Al-Khafji, which overlooks the Arabian Gulf. The project seeks to meet the growing demand for housing and tourism options in the northern part of the Eastern Province.
The company plans to develop the Al-Khafji coastline and transform it into an urban center and a destination attracting residents and visitors from Saudi Arabia and neighboring Gulf countries, by implementing the project in partnership with the private sector and attracting local and regional investors.
The project spans an area of approximately 20 square kilometers and includes a 10-kilometer waterfront along the Arabian Gulf coast. It leverages the geographical location of Al-Khafji Governorate and its proximity to Kuwait and other Gulf states, thereby supporting the movement of residents and visitors to the new destination.
Upon completion, the destination is expected to include eight residential neighborhoods providing more than 16,000 housing units, alongside approximately 1,400 hotel units, a range of public, commercial, tourism, and educational facilities, as well as dedicated areas for boat marinas.
The project will be developed in three main phases, with the first phase scheduled to conclude in 2030. This phase will involve the development of three neighborhoods, enabling the creation of an integrated residential and tourism community in stages.
Saad Al-Karoud, Head of Local Real Estate Investments at the Public Investment Fund, stated that the company will benefit from the urban and logistical advantages offered by Al-Khafji. He noted that the project will contribute to creating opportunities for local residents, developing the city’s infrastructure, and enhancing partnerships with the private sector.
He added that through its local real estate projects, the Fund continues to stimulate the capabilities of strategic sectors and strengthen their integration within economic systems, supporting its role in economic development and aiming to achieve sustainable returns.
The launch of the company comes as part of the Public Investment Fund’s investments in the “Urban Development and City Development” system, which includes real estate projects in various regions of the Kingdom in partnership with the private sector. The goal is to maximize long-term value, create opportunities, and enhance innovation in urban development.
The Urban Development and City Development system is one of the six economic systems announced by the Public Investment Fund as part of its 2026–2030 strategy. Its investments aim to support quality of life and contribute to the development of advanced, sustainable, human-centric cities.
The Fund’s investments in local projects support efforts to diversify the economy, create opportunities, and enhance commercial and investment activity across various cities in the Kingdom, in addition to developing infrastructure and transferring expertise and knowledge in several fields.
The Public Investment Fund operates under a long-term strategy aimed at leading the economic transformation in the Kingdom and achieving sustainable returns, by investing in sectors and projects that support economic growth and diversify its sources.
