Saudi Arabia’s Public Investment Fund (PIF) has launched the Gulf Coast Development Company to build a new tourism and residential destination on the Al-Khafji coastline along the Arabian Gulf.

The state sovereign wealth fund plans to deliver the scheme alongside private sector partners, as well as local and regional investors. The development aims to meet growing demand for accommodation and leisure across the northern region of Saudi Arabia’s Eastern Province.

Covering an area of around 20 square kilometres, the project features a 10-kilometre waterfront stretch. The site offers access for visitors and residents from Saudi Arabia, Kuwait and nearby Gulf Arab states, while generating direct and indirect employment opportunities locally.

Once fully built, the coastal destination will contain eight residential neighbourhoods housing over 16,000 homes, around 1,400 hotel keys, commercial areas, educational facilities and boat marinas. Construction will take place across three distinct phases, with the initial phase scheduled for completion in 2030. This first phase will establish three residential areas and basic community infrastructure.

The project forms part of the fund’s Urban Development and Livability ecosystem, which represents one of six strategic focus areas established in PIF’s 2026-2030 strategy.

Saad Alkroud, Head of Local Real Estate Investments at PIF, said: “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. Gulf Coast Development Company 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.”

The fund aims to use these investments to broaden the domestic economy, improve city infrastructure and encourage knowledge transfer across various commercial sectors.