Saudi Sovereign Fund Launches Gulf Coast Tourism and Housing Venture

Saudi Arabia's Public Investment Fund (PIF) has announced the creation of a new real estate company tasked with developing a tourism and residential zone along the Al-Khafji coastline on the Gulf, near the border with Kuwait. The move is part of the kingdom's broader strategy to diversify its economy away from oil revenues through large-scale infrastructure spending.

The newly formed entity, named the Gulf Coast Development Company, will work with private-sector partners to build an integrated destination spanning roughly 20 square kilometres, including a 10-kilometre waterfront. The master plan envisages more than 16,000 housing units, complemented by hotels and commercial spaces.

No official value for the project has been disclosed. The first phase is slated for completion by 2030.

The launch comes as the PIF recalibrates its investment approach, having recently pulled back from some of its larger infrastructure giga-projects. The fund's gross assets under management stood at 3.396 trillion riyals (about $904.54 billion) in 2025, with domestic investments accounting for 76 percent of the total.

In parallel, Saudi Arabia continues to develop its Red Sea coastline, where another PIF-backed firm, Red Sea Global, plans to open 27 resorts by the end of the year.