Ajdan Island Project: Saudi Arabia’s New Tourism Destination in Al-Khobar Nears Development

On Sunday, December 15, 2025, a historic deal was inked to launch an $80 million Ajdan Island tourist project in Al-Khobar Corniche. The deal, which took place through a collaborative effort among a Saudi Arabia Tourism Development Fund, Eastern Region’s Municipality, and Ajdan Real Estate Development Company, symbolizes a major step forward towards achieving a vision to support developing tourism within Saudi Arabia. Saudi Arabia’s Eastern region is soon to experience a new dawn in developing a tourist industry with a project valued at over SAR 300 million with a total cost of approximately $80 million in a bid to rename Al-Khobar Water Tower to a tourist site.

Project Overview: A Vision for Al-Khobar’s Transformation

The project will develop the Al-Khobar Water Tower area into a comprehensive and integrated tourist destination, complete with state-of-the-art facilities and services that will make it a major draw for both local and international visitors. The plan includes world-class restaurants, seafront cafés, entertainment spaces, and a fully integrated commercial zone. A unique feature of the development will be a panoramic restaurant that will offer stunning views of the Al-Khobar area, making it an iconic landmark on the Corniche.

This development aligns with Saudi Arabia’s Vision 2030 goals of diversifying the economy, particularly by expanding the tourism sector and creating a robust infrastructure for both domestic and international tourism. The development will not only revamp the Al-Khobar Corniche but also place Saudi Arabia’s Eastern Region on the global tourism map as a destination that combines modern luxury with authentic cultural experiences.

Government Support and Vision 2030: Fueling Growth in Saudi Tourism

The signing ceremony, which took place in Dammam, was sponsored by Prince Saud bin Naif bin Abdulaziz, the Governor of the Eastern Region. During the ceremony, the Governor emphasized the critical importance of the tourism sector in driving the Kingdom’s economic growth and diversifying sources of income. The support of Saudi Arabia’s leadership, including Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman bin Abdulaziz, has been instrumental in transforming the country’s tourism vision into reality.

Minister of Tourism and Chairman of the Tourism Development Fund, Ahmed Al-Khateeb, also attended the signing. He highlighted that the Ajdan Island project would further enhance the Kingdom’s efforts to position itself as a global tourism hub. It is also a key component of Saudi Arabia’s broader strategy to increase tourism investments and attract international travelers, creating jobs and boosting the national economy.

Economic Impact: Tourism as a Key Growth Engine

The Ajdan Island development is expected to have a transformative effect on both the local economy and the broader Saudi tourism industry. With a total value exceeding SAR 300 million, this initiative will contribute significantly to the region’s economic growth by fostering job creation, attracting tourists, and generating investment in local businesses. The tourism sector in Saudi Arabia has already seen considerable growth, and the Ajdan Island project is a critical piece of this expansion. As part of the Tourism Development Fund’s growing portfolio, which now surpasses SAR 12.7 billion, the project represents a major investment in the country’s tourism infrastructure.

The project will create a variety of job opportunities, both directly in the tourism and hospitality sectors and indirectly through the wider economic activities it generates. The addition of high-end restaurants, cafés, and entertainment facilities will require skilled labor, creating thousands of job opportunities for locals. Additionally, the development will boost tourism-related services such as transportation, retail, and local tour operations, offering new employment prospects for the region’s residents.

Ajdan Island: A New Tourist Destination in Saudi Arabia

The development of Ajdan Island promises to be a key addition to Al-Khobar’s already popular tourist destinations. The Corniche, a scenic waterfront area, has long been a favorite among residents and visitors alike, but the addition of world-class facilities will undoubtedly elevate it to a new level. The integration of various attractions, such as the panoramic restaurant and seafront cafés, will offer a diverse range of experiences for tourists, from dining and shopping to leisure activities and entertainment.

The project’s focus on creating a well-rounded tourism experience will appeal to a broad spectrum of travelers, including those seeking luxury, cultural experiences, and family-friendly activities. The Al-Khobar Water Tower area’s transformation will also create a new focal point for tourism in the Eastern Region, offering both locals and tourists a modern space that reflects Saudi Arabia’s growing tourism ambitions.

Cultural and Tourism Synergy: A Unique Blend of Modernity and Tradition

Ajdan Island will not just cater to luxury tourists but will also celebrate Saudi Arabia’s rich cultural heritage, blending modern development with traditional elements. The design of the project will incorporate aspects of the region’s history and culture, offering visitors an authentic experience that goes beyond just shopping and dining. This approach aligns with Saudi Arabia’s broader tourism strategy of preserving cultural traditions while embracing modernity to create diverse travel experiences.

The tourism development is expected to boost Al-Khobar’s position as one of the leading tourist destinations in Saudi Arabia. The city has already been known for its coastal beauty, but with the addition of this integrated, world-class tourism hub, it will become an even more appealing option for both international and domestic tourists.

Collaboration and Future Prospects: A Model for Regional Development

The successful signing of this agreement underscores the importance of cooperation between public and private sectors in realizing Saudi Arabia’s ambitious tourism goals. Eastern Region Municipality’s Mayor, Fahad Al-Jubeir, also expressed his enthusiasm for the project’s potential impact, noting that it would play a significant role in the development of tourism infrastructure and services in the region.

Al-Jubeir stressed the importance of the tourism sector in regional development, noting that projects like Ajdan Island will enhance the local economy, improve service quality, and create more job opportunities for the residents of the Eastern Region. The collaboration between the Eastern Region Municipality, Ajdan Real Estate Development Company, and the Tourism Development Fund is a model for the kinds of public-private partnerships that will be crucial in expanding Saudi Arabia’s tourism sector.

Transforming Al-Khobar into a Global Tourism Destination

The Ajdan Island tourism investment project, with a budget of $80 million, is an important step towards making Saudi Arabia a tourist hub in the global arena. The project aims to transform the Water Tower area in Al-Khobar into a tourist hub and will prove to be a major factor in impacting the regional economy and development in general.

The Ajdan Island project is one such project that receives immense government support and is a shining example of an initiative in line with the Kingdom’s Vision 2030 strategy. Apart from enriching Saudi tourist life, this project will also have a positive impact on local communities by providing jobs. As this project continues to gain momentum, it will go on to become an important part of a future Saudi Arabia where it will become one of the major tourist destinations in the world.

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