King Abdulaziz port in Dammam is the largest in the Gulf. Only Jeddah on the Red Sea has a larger port on the Arabian Peninsula.

The Dammam metropolitan area has a population of about 2.5 million people, more than 2 million of whom live in the city, the third-largest in the kingdom after Riyadh and Jeddah. A further 450,000 live in Al-Khobar. Dhahran has a population of about 11,000, but the two cities are located so close together they effectively meld into one and most locals no longer distinguish between the two. The governor of the Eastern Province is Prince Mohammad bin Fahd, who has been in office since 1985.

The area is associated with Saudi Arabia’s state-run oil company Saudi Aramco, which made its first major oil discovery in the area (as Arabian American Oil Company) when it was still owned by the US’ Standard Oil Company of California and Texaco. On 4 March 1938, after a largely fruitless exploration campaign, Aramco decided to drill a seventh, and last, well – Dammam 7 – in the province. It started producing oil, with output steadily rising to 3,000 barrels a day.

The company conclusively proved that oil production in the kingdom was commercially viable. Dammam 7 became an oil industry legend and the Eastern Province went on to provide a quarter of the world’s oil supply. The camp set up around Dammam 7 grew to become the town of Dhahran, a major cog in the Aramco machine and the site of its headquarters to this day. Aramco and oil are at the heart of the regional economy.

Al-Khobar

Expats describe Al-Khobar as the most pleasant part of the area due to its long and picturesque corniche. They also rate its restaurants highly.

A fishing village before the discovery of oil, Al-Khobar became a major port during the expansion of Aramco’s operations in the area, but its significance has diminished since King Abdulaziz port rose to prominence in the 1970s and 1980s and Aramco built a dedicated oil export terminal at Ras Tanura to the north of Dammam.

Al-Khobar has become as much a stop-off point as a trade destination in recent years, particularly since the completion of the King Fahd causeway, which links Saudi Arabia with Bahrain and passes through Al-Khobar.

Dammam

Most subsidiary services to the oil industry can be found in Dammam, from oil service companies to caterers. The city has undergone massive growth since 1938 and, as with other cities in Saudi Arabia, residents complain of smog, congested traffic and a sometimes incomprehensible road system.

In recent years, a lot of work has gone into sprucing up Dammam’s corniche and the local tourism department has worked hard to promote the city as a destination, with emphasis on the artificial reef of Half Moon Bay and Coral Island, a 15-minute boat ride away from the city.

Transport

Aviation
The Dammam metro area is served by a single airport, King Fahd International airport, which is located in the desert about 40 kilometres to the northwest of the city. In the past, complaints were made about the state of the roads leading into and out of the airport, but they have improved considerably in recent years. Another option, particularly for visitors to Al-Khobar, is flying to Bahrain International airport. It is about 65km from the city, not much more of a drive than the 50km from King Fahd airport.

Rail
Dammam is part of the existing Saudi Arabian passenger rail network, which connects the city with Riyadh (4.5 hours away) and Al-Hofuf (1.5 hours away).

Accommodation

Most of the attractive and expensive hotels and apartments in Dammam and Al-Khobar are close to the corniches in the cities, with visitors rating Al-Khobar’s hotels, grouped in the exclusive Madinat al-Ummal neighbourhood, particularly highly.

Apartments and villas
If you are moving to Dammam or Al-Khobar, you will not be short of choices for accommodation. In general, Dammam is seen as the older of the two places and is noted for its bustling markets and sometimes decrepit buildings. Al-Khobar is popular among expats and is seen as a little more upmarket. Further out of the cities, there are also a wide range of compounds.

Another choice for people working in either city, particularly Al-Khobar, is to live in Bahrain and commute to Saudi Arabia. Some families who do not enjoy compound living find this option preferable as Bahrain has a more laid-back, liberal atmosphere where women can drive and alcohol is legal.

Apartments
Beyond Madinat al-Ummal, expatriates favour areas including Al-Bandaryah in the north of Al-Khobar, an older part of the city, Al-Ulaya, which is an area developed relatively recently, from which you can walk to the huge new Al-Rashid Mall, and Al-Rakah, near the large university campus.

Villas and compounds
Sadly, Al-Khobar is remembered by many for the tragic attacks on several oil companies and a large expatriate compound in 2004 by the extremist Jerusalem Squadron. To this day, security around compounds in the area is tight and there have been no attacks since then. Al-Khobar has some of the best compounds in the kingdom, including Al-Bustan, Zamil Village, Oasis, Nesma Village, Canary Village and Al-Rushaid.

Office space
Office space in Dammam and Al-Khobar is cheaper than in Riyadh and comparable with Jeddah. The quality can be variable, however, and some businesses have complained about older facilities in Dammam. Another option is moving into one of the growing number of business parks that are springing up around Dammam in particular. These include the Novotel business park in Al-Khobar.

Healthcare

As in the rest of the kingdom, there are a wide variety of hospitals and smaller clinics in Dammam and Al-Khobar, which offer a good level of healthcare. Larger facilities include Saad Specialist Hospital in Al-Khobar and King Fahad Specialist Hospital in Dammam, both of which are accredited by the US-based healthcare organisation Joint Commission International.

The 1,500-bed King Khalid Medical City is also under construction about 20km southwest of Dhahran. US-based Aecom was awarded a $27.9m contract in July 2012 to provide architecture, engineering, design and production services for the facility.