The Battle of Khafji took place in and around the town in 1991 and marked the high tide of Iraq's advance through Kuwait and into Saudi Arabia during the Persian Gulf War.

was Prince Faisal bin Turki I, eldest grandson of the country's founder Ibn Saud, also known as King Abdulaziz.

The Saudi government, in conjunction with Aramco Gulf Operations Company, is promoting large-scale development projects in Khafji with the goal of transforming it into one of the major cities in the country.

The project would publicize and promote Khafji's beaches on the Arabian Gulf during the summer and the temperate weather and desert camping in the winter.

[citation needed] In 1988, Khafji National Polyclinic was established and turned into hospital by 2004 to be the pioneer in private medical service in the city.

[6] Currently Khafji General Hospital- since started by the end of 2005- became the main health institute in Khafji Governorate since it provides the health care for all citizens and eligible residents in all speciality areas -regarding the rapidly growing population- and rapidly expanding every day replacing the historical role of KJO hospital.

[7][citation needed] There is a small airfield in the city (Khafji Airport) owned by Aramco Gulf Operations Company that is not open for public use or commercial service.

[citation needed] Both locations offer a greater variety of products and large and well-established markets in contrast to the young but growing retail options in Khafji.