Saudi Arabia’s Public Investment Fund (PIF) has launched Sahil Al Khaleej Real Estate Development Company to develop a major integrated residential and tourism destination along the coast of Khafji, leveraging the city’s strategic location near Kuwait and its accessibility from across the Gulf.
The project is designed to strengthen Khafji’s position as an emerging residential and tourism hub in the northern Eastern Province while responding to rising demand for housing, hospitality and leisure facilities in the region. According to the PIF, the development will cover approximately 20 square kilometers and feature a 10-kilometer waterfront overlooking the Arabian Gulf.
Its location is expected to provide convenient access for visitors and residents from various parts of Saudi Arabia, Kuwait and other Gulf countries. The development is also expected to support the local economy by creating direct and indirect employment opportunities for residents of Khafji and the surrounding area.
Once completed, Sahil Al Khaleej is planned to include eight residential neighborhoods with more than 16,000 housing units, alongside approximately 1,400 hotel units. The destination will also feature a mix of public, commercial, tourism and educational facilities, as well as designated areas for boat marinas.
The project will be developed in three main phases, with the first phase scheduled for completion in 2030. The initial phase will include three residential neighborhoods and is intended to establish the foundation for an integrated coastal community combining residential, tourism and commercial activities.
The PIF said the development is aimed at supporting sustainable growth, enhancing quality of life and unlocking the economic potential of Khafji’s strategic coastal location.
Saad Al-Karoud, Head of the General Department of Local Real Estate Investments at the PIF, said the fund continues to use its local real estate investments to stimulate strategic sectors and strengthen their integration across its six economic systems under its 2026–2030 strategy.
He added that the initiative reflects the fund’s role as an active partner in driving economic development and expanding investment opportunities within Saudi Arabia’s local real estate sector.
