Saudi Arabia’s PIF launches $1 billion-scale Gulf Coast tourism and residential project

Saudi Arabia’s Public Investment Fund (PIF) has launched Gulf Coast Development Co. to develop an integrated tourism and residential destination on the Al-Khafji coast in the Eastern Province.

The company will work with the private sector and local and regional investors to meet growing demand for accommodation and tourism in the northern Eastern Province.

The project will span around 20 square kilometers and feature a 10-kilometer waterfront along the Arabian Gulf. Its location near Kuwait and other Gulf markets is expected to support demand for residential, hospitality and tourism facilities.

Once complete, the destination will include eight residential neighborhoods with more than 16,000 housing units and around 1,400 hotel keys, alongside commercial, tourism and educational facilities and dedicated boat marinas.

Development will take place in three phases, with the first phase scheduled for completion in 2030. It will include three neighborhoods and establish the foundation for the wider tourism and residential community.

The project forms part of PIF’s Urban Development and Livability ecosystem under its 2026-2030 strategy, which focuses on real estate development, private-sector partnerships and long-term value creation.

Saad Alkroud, head of Local Real Estate Investments at PIF, said the project would build on Al-Khafji’s cultural and logistical advantages, while creating opportunities for residents, upgrading infrastructure and expanding private-sector participation.

The development comes as Saudi Arabia continues to expand its tourism and real estate sectors under Vision 2030. The Kingdom has already surpassed its initial target of 100 million annual visitors and now aims to attract 150 million visitors by 2030.

PIF reported revenue of $120 billion in 2025, up 9% year on year, while net profit more than doubled to $17 billion. Its assets under management exceeded $900 billion, compared with around $530 billion in 2021 and $150 billion in 2015.

The fund said 80% of its assets were allocated domestically, while 55% were invested in alternative assets.