Exclusive: Saudi Arabia Pauses Mukaab Megastructure as Vision 2030 Priorities Shift

Saudi Arabia has suspended construction of the Mukaab, a massive cube-shaped skyscraper planned for the heart of Riyadh’s New Murabba district, as authorities reassess the project’s financing and long-term feasibility, according to multiple people familiar with the matter.

The decision makes the Mukaab the latest high-profile Vision 2030 gigaproject to be delayed or scaled back, as the kingdom’s $925 billion sovereign wealth fund (PIF) recalibrates spending priorities amid rising fiscal pressures.

Vision 2030 ambitions under review-

Saudi Arabia is increasingly shifting away from capital-intensive, futuristic developments toward projects viewed as more urgent or commercially viable, sources said. While flagship concepts such as NEOM’s The Line captured global attention, focus is now turning to initiatives tied to near-term economic impact.

Priority projects include World Expo 2030 infrastructure, preparations for the 2034 FIFA World Cup, the $60 billion Diriyah Gate cultural development, and the Qiddiya entertainment and tourism megaproject, according to people familiar with internal deliberations.

The reassessment comes as oil prices remain below levels required to comfortably finance the kingdom’s expansive transformation agenda.

Work beyond foundations halted-

The Mukaab was envisioned as a 400-metre-by-400-metre metal cube, housing a vast dome with what was described as the world’s largest AI-powered immersive display, visible from a more than 300-metre-high ziggurat-like structure inside the building.

“When you enter Mukaab, you enter another world,” New Murabba CEO Michael Dyke said at a Riyadh conference in December, acknowledging the unprecedented technical challenges involved.

According to sources, construction beyond soil excavation and piling has now been suspended, leaving the project’s future uncertain. Development of surrounding real estate within the New Murabba district, however, is expected to continue.

Officials from the PIF, the Saudi government, and the New Murabba Development Company did not respond to requests for comment.

PIF pivots toward higher-return sectors-

The pause follows a broader strategic shift by the PIF. In October, it emerged that the fund was redirecting capital toward sectors such as logistics, mining, and artificial intelligence, which are seen as offering stronger near-term returns. The move followed an $8 billion writedown on gigaproject investments at the end of 2024.

Saudi Economy Minister Faisal Al-Ibrahim recently acknowledged that several Vision 2030 projects are undergoing review, stating that the kingdom is willing to delay, rescope, or shift initiatives when necessary.

Over the weekend, Saudi Arabia also announced the indefinite postponement of the 2029 Asian Winter Games planned for Trojena, another NEOM-linked project facing delays.

First major Riyadh project reassessed-

While several mega developments have been slowed elsewhere in the kingdom, the Mukaab is the first major project in Riyadh reported to be undergoing a feasibility reassessment.

Originally billed as large enough to accommodate 20 Empire State Buildings, the structure was designed to include around 2 million square metres of interior floor space, making it the largest single-built structure in the world if completed.

Real estate consultancy Knight Frank has estimated the total cost of the New Murabba district at around $50 billion, with projects commissioned so far valued at approximately $100 million. Initial completion targets of 2030 have since been pushed back to 2040.

The district was expected to deliver 104,000 residential units, contribute 180 billion riyals to Saudi Arabia’s GDP, and create 334,000 jobs by 2030, according to previous government estimates.

Design controversy-

When unveiled, the Mukaab’s cube-like design drew criticism on social media for its resemblance to the Kaaba in Makkah, Islam’s holiest site. While officials did not formally address the criticism, the design sparked debate both inside and outside the kingdom.

For now, the future of the Mukaab remains uncertain, reflecting a broader recalibration of Saudi Arabia’s ambitions as Vision 2030 enters a more pragmatic phase.