ALKHOBAR: Saudi Arabia’s Public Investment Fund has launched a waterfront development of 829,000 sq. meters in Alkhobar, with construction contracts and private-sector agreements advancing plans for a mixed-use destination combining residential, commercial and recreational facilities.
Prince Saud bin Naif bin Abdulaziz, governor of the Eastern Province, witnessed the launch on Nov. 1 alongside Deputy Governor Prince Saud bin Bandar bin Abdulaziz and Saudi Downtown Co. Chairman Ibrahim Al-Sultan.
Developed by PIF subsidiary SDC, the project will include more than 4,000 residential units, over 500 hotel rooms and 40,000 sq. meters of office space. It will also feature more than 139,000 sq. meters of retail, restaurant and cafe space, alongside 103,000 sq. meters of green spaces and public parks.
Residential development has also advanced through three agreements signed with Sumou Real Estate on Nov. 1 covering the development, construction, marketing and sale of residential buildings and towers. The 48-month arrangements include mid-rise buildings and a high-rise tower, with financing partly supported through off-plan sales.
SDC also signed an agreement with Sumou Investment Company to explore establishing a real estate fund to develop four- and five-star hotels and serviced hotel apartments within the project.
A major component of the development is its planned shopping mall and boulevard, for which Cenomi Centers signed a SR1.33 billion ($345.3 million) design-and-build contract with Lynx Contracting Co. in June. The 36-month contract covers the design, engineering and construction of the destination, which will have approximately 110,000 sq. meters of gross leasable area within a total built-up area of 152,000 sq. meters.
SDC is mandated to develop urban destinations across 12 Saudi cities, including Al-Madinah, Al-Ahsa, Buraidah, Taif, Tabuk and Jazan.
The project comes amid wider efforts across Saudi Arabia to expand pedestrian infrastructure, recreational facilities and public spaces.
During the first half of 2026, municipal authorities developed more than 667 km of pedestrian walkways and sidewalks, alongside 108 municipal plazas covering approximately 1.28 million sq. meters and 44 parks spanning more than 803,000 sq. meters, according to the Ministry of Municipalities and Housing.
Recent projects illustrate how this approach is taking shape in different parts of the country. In Alkhobar, the municipality inaugurated Alkhobar Terrace in May, introducing walking and cycling paths, sports facilities, green spaces and seating areas overlooking the sea.
