Key Takeaways
- Saudi Arabia’s Public Investment Fund (PIF) has launched a new real estate company to develop tourism and residential areas on the Al-Khafji coastline.
- The project, called the Gulf Coast Development Company, will create an integrated tourist and residential destination spanning 20 square kilometres.
- The first phase of the project is scheduled to be completed by 2030 and will include over 16,000 housing units and commercial facilities.
Saudi Arabia’s Public Investment Fund (PIF) has announced the launch of a new real estate company, the Gulf Coast Development Company, aimed at developing tourism and residential areas on the Al-Khafji coastline on the Gulf. This move is part of Saudi Arabia’s broader strategy to diversify its economy and reduce reliance on oil revenue.
The new company will operate in partnership with the private sector and will focus on creating an integrated tourist and residential destination. The project covers an area of approximately 20 square kilometres, with a 10-kilometre waterfront, and is expected to accommodate more than 16,000 housing units, alongside hotels and other commercial facilities.
The project is part of a larger initiative by PIF to develop the Gulf coast, which includes plans to open 27 resorts along the Red Sea coast by the end of the year. PIF’s gross assets under management (AUM) totalled 3.396 trillion riyals ($904.54 billion) in 2025, with local investments representing 76% of total AUM.
In recent years, PIF has shifted its strategy, moving away from some investments, including scaling back so-called infrastructure giga-projects in the kingdom. The new real estate company is part of this strategic shift, focusing on more sustainable and diversified projects.
The first phase of the Al-Khafji project is scheduled to be completed by 2030, with the goal of creating a vibrant and integrated tourist and residential destination. The project is expected to contribute significantly to the local economy and enhance the region’s appeal as a destination for both tourists and residents.
The launch of the Gulf Coast Development Company marks a significant step in Saudi Arabia’s ongoing efforts to diversify its economy and promote non-oil sectors. The project is expected to create jobs and stimulate economic growth in the region, while also contributing to the country’s broader economic transformation plan.
