PIF launches Gulf Coast Real Estate Development for Khafji tourism project

Saudi Arabia’s Public Investment Fund (PIF) announced on Monday the launch of Gulf Coast Real Estate Development, a company that will develop an integrated tourism and residential destination along the Arabian Gulf coast in the city of Khafji, responding to growing demand for housing and tourism options in the northern part of the Kingdom’s Eastern Province.

The company plans to carry out its projects by attracting local and regional investors and partnering with the private sector, whose participation in PIF projects the fund continues to support and enable.

PIF said in a statement that the project will cover approximately 20 square kilometers, with 10 kilometers of waterfront along the Arabian Gulf. It will benefit from Khafji’s strategic location, which provides easy access for residents and visitors from Saudi Arabia, Kuwait and other Gulf countries, while creating direct and indirect employment opportunities for local residents.

PIF invests in numerous real estate projects through its Urban Development and Urban Regeneration ecosystem, in partnership with the private sector, to maximize long-term value and promote innovation in urban development. The investments aim to improve quality of life and contribute to the development of advanced, sustainable, people-centered cities.

The Urban Development and Urban Regeneration ecosystem is one of six economic ecosystems announced by PIF under its 2026-2030 strategy.

New destination to provide more than 16,000 homes

Once completed, the destination is expected to include eight residential neighborhoods providing more than 16,000 housing units and approximately 1,400 hotel units. It will also feature public, commercial, tourism and educational facilities, as well as areas designated for boat marinas.

The destination will be developed in three main phases, with the first phase scheduled for completion in 2030. That phase will include three neighborhoods, contributing to the creation of an integrated tourism and residential community that promotes sustainable development and improves quality of life.

Saad al-Kroud, head of PIF’s Local Real Estate Investment Division, said: “Through its projects in the local real estate sector, PIF continues to stimulate and unlock the potential of strategic sectors, strengthen their integration within the fund’s six economic ecosystems under its 2026-2030 strategy, and increase the fund’s role as an active partner in economic development.”

Strengthening private-sector partnerships

Al-Kroud said Gulf Coast Real Estate Development would benefit from Khafji’s competitive urban and logistical advantages. Its project would also create opportunities for local residents, develop the city’s infrastructure and strengthen partnerships with the private sector, helping maximize value and generate sustainable returns.

PIF’s investments contribute to local development by supporting economic diversification, creating opportunities and stimulating commercial and investment activity across Saudi cities. This increases their attractiveness and positive impact on local economies, while facilitating the transfer of expertise and knowledge across various fields.

PIF is one of the world’s most influential investors and operates under a long-term strategy aimed at driving Saudi Arabia’s economic transformation and generating sustainable returns.