In earlier days, Khobar was a small port on the Gulf, a fishing village inhabited mainly by Al Dossary tribe members. With the discovery of oil in the 1930s, it was transformed into a major commercial and shopping centre and an industrial port. In modern times, the larger port of Dammam has taken over most commercial shipping activities for the Eastern Province, and oil is exported via the dedicated Saudi Aramco port of Ras Tanura. As a result, Khobar has transformed and extended its water front along the Gulf into a scenic Beirut-like cornice with parks, eateries, and family beaches, thus making it one of the most iconic features of the city. Moreover, Khobar's location along the Persian Gulf has made it increasingly popular amongst people travelling from cities within the Kingdom (such as the capital Riyadh which lies approximately 400 km west).
The 16-mile (26 km) King Fahd Causeway connects Khobar to the island nation of Bahrain, previously reachable only by air or sea.
The city is divided into four areas: Khobar, Subekha, Thuqba and Aqrabia. While Khobar, Subekha and Thuqba are mainly commercial areas with not much residential scope, Aqrabia consists of mostly residential complexes, accommodating about 50% of the city's population.
The city used to have a model of the space shuttle Discovery to commemorate the space flight of Sultan Salman Al Saud, the first Saudi in space (on STS-51-G).
The city is also the home of Quran recite Ahmad Ali Al-Ajmi.
In 1996, the Khobar Towers, a US Air Force housing complex, was bombed by ِAl Kaida-talban militants, killing 19 US servicemen and one Saudi local
