PIF launches Gulf Coast Real Estate Development Company for integrated Khafji waterfront project

The Public Investment Fund (PIF) of Saudi Arabia has established a new company called Gulf Coast Development Company to construct a coastal residential and tourism area in Al Khafji, a city located in Saudi Arabia near the border with Kuwait. Al Khafji, situated approximately 10km from the Kuwaiti border and 130km from Kuwait City, is a significant oil-producing region within the Divided Neutral Zone, where oil resources are shared equally between Saudi Arabia and Kuwait.

The offshore Khafji field, operated by Al Khafji Joint Operations, a partnership between Aramco Gulf Operations and Kuwait Gulf Oil Company, has a production capacity of around 300,000 barrels per day. The field was halted in 2014 due to a disagreement between the two nations but resumed operations in 2020.

Gulf Coast Development Company aims to develop around 20 square kilometers of land along a 10km stretch of the Arabian Gulf coastline. The project encompasses eight residential neighborhoods housing over 16,000 homes, hotels with approximately 1,400 rooms, commercial and tourism facilities, educational institutions, and marinas.

Construction will occur in three phases, with the first phase, consisting of three neighborhoods forming the core of the development, scheduled for completion in 2030. The first phase will capitalize on Al Khafji's cultural and logistical benefits and generate new opportunities for residents, enhance the city's infrastructure, and foster private sector collaborations, according to Saad Alkroud, the head of local real estate investments at PIF.

The project aims to address the increasing demand for housing and tourism accommodations in the northern Eastern Province, which attracts visitors from Kuwait and other Gulf regions. Gulf Coast Development Company is part of the urban development and livability ecosystem, one of six systems under PIF's 2026-2030 strategy approved by the fund's board in April.

The other five systems include tourism, travel and entertainment, advanced manufacturing and innovation, industrials and logistics, clean energy, water, and renewables infrastructure, and Neom. Other notable property developers under PIF include Roshn, Diriyah Company, New Murabba, and Jeddah Central Development Company.