CAIRO - Saudi Arabia will invest 2.64 billion riyals ($702.6 million) in its Tarout Island in the Gulf, state news agency SPA reported on Thursday.

Development of the 32 sq km island inhabited by 120,000 will focus on its tourism, heritage and environmental advantages, SPA said.

($1 = 3.7573 riyals)

(Reporting by Yomna Ehab Writing by Nafisa Eltahir Editing by David Goodman )