This was completed in 1351H (1932) for King Abdul Aziz and was also the home for King Saud. The palace forms a model for the style of Jeddah buildings of the second half of 14th century H, with its big buildings, wide rooms, high ceilings, yards and beautiful gardens. The palace was where the first agreement to excavate for petrol in the kingdom was signed.

Since 1402H it has been used as a regional heritage center in Jeddah, following renovations by the Museums Department. The magnificent Diwan has been converted into a museum of archaeology and ethnology.

The site includes the Khuzam International Swimming Pool, a park, a restaurant, the King Saud mosque, a nursery, Islamic bank, Eid mosque and Queen Effat College.