PIF launches company to develop Al-Khafji into coastal tourism hub

RIYADH: Saudi Arabia's Al-Khafji coast will be developed into an integrated tourism and residential destination under a new company launched by the Public Investment Fund to unlock the region's economic potential. Gulf Coast Development Co. will work on the site in partnership with the private sector and local and regional investors, responding to rising demand for accommodation and tourism in the northern part of the Eastern Province, PIF said. The project will span about 20 sq. km and feature a 10-km waterfront along the Arabian Gulf. Its location near Kuwait and other Gulf markets is expected to support demand for residential, hospitality and tourism facilities. The development aligns with Saudi Arabia's broader push to expand its tourism sector and build a stronger real estate landscape as the Kingdom continues efforts to diversify its economy and reduce reliance on crude revenues. Having already surpassed the 100 million visitor target, Saudi Arabia's National Tourism Strategy now aims to attract 150 million visitors by 2030. Saad Al-Kroud, head of Local Real Estate Investments at PIF, said: 'Gulf Coast Development Co. will capitalize on Al-Khafji's cultural and logistical advantages. The company's 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.' Al-Kroud added: 'Through its local real estate projects, PIF continues to unlock the potential of strategic sectors, deepen their integration within the six ecosystems outlined in PIF's 2026‑2030 strategy, and strengthen the private sector's role as an effective partner in economic growth.' PIF's 2026-2030 strategy aims to develop competitive ecosystems, unlock the full potential of its assets and maximize financial returns through its Vision, Strategic and Financial Portfolios. Coastal development plans Once completed, the destination will include eight residential neighborhoods containing more than 16,000 housing units and about 1,400 hotel keys. Plans also include commercial, tourism and educational facilities, as well as dedicated boat marinas. Development will proceed in three phases. The first phase, scheduled for completion in 2030, will deliver three neighborhoods and form the foundation of an integrated tourism and residential community, PIF said. The fund added that its real estate investments are aimed at diversifying the economy, generating opportunities and expanding trade and investment across Saudi Arabia, while increasing the attractiveness of urban centers. PIF expands domestic investment In August, PIF revealed in its annual report that its revenue rose 9 percent year on year to $120 billion, while net profit more than doubled to $17 billion in 2025. The sovereign wealth fund said that the stronger performance was supported by increased contributions from maturing portfolio companies. According to the report, PIF's assets under management exceeded $900 billion, up from around $530 billion in 2021 and $150 billion in 2015. In January, the Sovereign Wealth Fund Institute named PIF the fifth-largest sovereign wealth fund globally. The report added that the fund demonstrated a strong domestic investment orientation, with 80 percent of its assets allocated within the Kingdom and 55 percent of its portfolio invested in alternative assets.