PIF establishes Gulf Coast tourism developer in Khafji

Saudi Arabia’s Public Investment Fund has launched Gulf Coast Development Company to create a sprawling tourism and residential hub along the Al-Khafji coastline near Kuwait, extending the sovereign wealth fund’s investment reach into the northern Eastern Province. The new company, set to develop the project alongside private and regional partners, aims to tap into demand for housing, hospitality, and tourism facilities in an area well-positioned to attract visitors from Saudi Arabia, Kuwait, and other Gulf states.

Covering approximately 20 square kilometres, the development will feature a 10-kilometre waterfront on the Arabian Gulf, along with eight residential neighborhoods housing over 16,000 units, approximately 1,400 hotel rooms, commercial and tourism facilities, educational amenities, and dedicated boat marinas. Construction is slated in three phases, with the first phase—targeting completion in 2030—planned to deliver three neighborhoods and establish an initial tourism and residential community that will serve as a foundation for later stages.

While the project’s total cost remains undisclosed, Gulf Coast Development Company will integrate the waterfront, marinas, and mixed-use facilities into a cohesive destination, leveraging Al-Khafji’s cultural and logistical advantages to enhance local infrastructure and forge private-sector partnerships aimed at maximizing value and generating sustainable returns.

The launch of the project places Al-Khafji within Saudi Arabia’s Urban Development and Livability ecosystem, one of six investment ecosystems outlined in the Public Investment Fund’s 2026-2030 strategy, which emphasizes integrating state-backed projects with private capital to foster long-term financial returns and broader economic activity.

Al-Khafji’s strategic location, situated near Saudi Arabia’s border with Kuwait, offers access to population centers on both sides of the frontier and to travelers from the broader Gulf region, thereby bolstering the project’s commercial viability. The development aligns with Saudi Arabia’s broader economic diversification efforts under Vision 2030, which has channeled significant state investment into housing, hospitality, transport, entertainment, and urban development.

Tourism has emerged as a critical pillar of the kingdom’s Vision 2030, with Saudi Arabia welcoming 123 million tourists in 2025, including over 30 million international visitors, indicating a growing appetite for non-oil activity. The government has set an ambitious target of 150 million visitors annually by 2030, reflecting a continued push to expand tourism and attract both domestic and international travelers.

As a leading state investment vehicle behind numerous diversification projects, Saudi Arabia’s Public Investment Fund has overseen assets under management surpassing $900 billion and cumulative investments of over $199 billion in new ventures across Saudi Arabia from 2021 to 2025. The fund’s 2026-2030 strategy pivots towards value realization, placing greater emphasis on financial returns, private-sector engagement, and interconnected domestic investment ecosystems.

Gulf Coast Development Company is poised to follow this model by engaging local and regional investors throughout the development process. Situated near the Partitioned Neutral Zone shared by Saudi Arabia and Kuwait, Al-Khafji is also a prominent oil-producing hub, with the offshore Khafji oil field jointly operated by entities linked to Saudi Aramco and Kuwait Petroleum Corporation, underscoring the coastal city’s economic significance beyond its planned tourism expansion.