Saudi PIF launches firm to develop tourism, residential area on Gulf coast

DUBAI: Saudi Arabia’s Public Investment Fund (PIF) said on Monday it has launched a real estate company to develop tourism on the Al-Khafji coastline on the Gulf, as the sovereign wealth fund pours billions of dollars into infrastructure projects.

Saudi Arabia is investing in infrastructure as part of its plans to transform the economy and reduce the kingdom’s reliance on oil revenue.

The new real estate company, called the Gulf Coast Development Company, in partnership with the private sector, will create an integrated tourist and residential destination on the Al-Khafji area bordering Kuwait on the Gulf.

The project, spanning around 20 square kilometres (7.7 sq. miles) with a 10-km waterfront, is expected to accommodate more than 16,000 housing units alongside hotels and other commercial facilities.

There was no immediate clarity on the value of the project, whose first phase is scheduled to be completed in 2030.

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PIF’s gross assets under management (AUM) totalled 3.396 trillion riyals ($904.54 billion) in 2025 compared to 3.434 trillion riyals the previous year. Local investments represented 76% of total AUM in 2025.

PIF, which is spearheading the economic transformation plan, recently shifted strategy, moving away from some investments, including scaling back so-called infrastructure giga-projects in the kingdom.

Saudi Arabia is also developing its Red Sea coast, where PIF’s firm Red Sea Global is planning to open 27 resorts by year-end.