Ministry of Investment partners with PIF-owned Gulf Coast Development Company as the master plan targets nine hotels and resorts offering 1,400 rooms by 2040.
Riyadh – Saudi Arabia – Al Rehla
Saudi Arabia's Ministry of Investment has signed a Memorandum of Understanding (MoU) with Gulf Coast Development Company, a wholly owned subsidiary of the Public Investment Fund (PIF), to strengthen investor participation in the planned coastal destination in Al Khafji, in the northern part of the Eastern Province.
The development includes nine hotels and resorts as part of an integrated tourism and residential master plan.
Under the MoU, announced in November 2026, investment opportunities offered by the company will be incorporated into the Ministry of Investment's investor attraction programmes and platforms, helping connect international investors with projects aligned with their interests.
Nine Hotels and 1,400 Rooms Planned
The Al Khafji development covers approximately 20 square kilometres, featuring a 10-kilometre waterfront along the Arabian Gulf.
By 2040, the master plan aims to deliver nine hotels and resorts providing around 1,400 hotel rooms, alongside more than 16,000 residential units, over 214,000 square metres of retail space and approximately 390 marina berths.
The Public Investment Fund announced the establishment of the company and the launch of the project in September 2026.
Development is planned across three phases, with the first phase targeted for completion in 2030.
Who Is Behind the Project?
Gulf Coast Development Company serves as the master developer of the destination and is wholly owned by Saudi Arabia's Public Investment Fund.
The company is led by Chief Executive Officer Amr Banaja, who has highlighted the project's reliance on private-sector participation in developing its residential, tourism and commercial components.
The new MoU aims to expand access to potential investors and facilitate the promotion of investment opportunities.
However, it does not announce any new contracts for the construction or operation of the planned hotels.
Al Rehla Perspective | Could Al Khafji Become a Gulf Tourism Destination?
Al Khafji's location near the Kuwaiti border provides a potential advantage in attracting short-stay visitors and coastal tourism demand from neighbouring Gulf markets.
The planned destination presents potential opportunities in hotels, resorts, marinas and waterfront leisure activities.
However, transforming the master plan into an operational tourism destination will depend on securing investment, development and hotel management agreements, alongside completing the necessary infrastructure, facilities and services.
The total value of the planned hotel investments has not yet been disclosed, nor have the companies that will operate the nine proposed hotels and resorts been announced.
The latest agreement therefore represents a step towards attracting investors rather than confirmation of new hotel construction or operating contracts.
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