Saudi Arabia pauses work on landmark Mukaab megaproject as funding review begins

RIYADH — Saudi Arabia has halted construction on the central Mukaab megaproject in Riyadh’s New Murabba development as authorities reassess the project’s financial viability and strategic direction, people familiar with the matter said.

The pause affects one of the most ambitious architectural ventures linked to the kingdom’s Vision 2030 transformation agenda — a colossal 400-metre-tall cube envisioned as the focal point of a futuristic urban district. Work beyond initial excavation and foundation piling has been suspended while funding structures, timelines and long-term economic returns are reviewed.

Project shift reflects recalibration of priorities

The decision highlights a broader shift within the Public Investment Fund (PIF) — the kingdom’s $925 billion sovereign wealth fund — toward projects with clearer near-term economic returns and financial sustainability. Officials familiar with internal deliberations said the review comes amid fiscal pressures as oil prices remain below levels needed to comfortably finance all previously announced megaproject ambitions.

The Mukaab was intended to house immersive digital experiences, retail, hospitality and entertainment spaces. It was widely touted as a global icon of futuristic architecture, with interior space large enough to fit “20 Empire State Buildings.”

Alongside the Mukaab, the broader New Murabba district is a planned mixed-use urban zone featuring residential, cultural, office and retail spaces. Although the cube’s construction has been paused, development of the surrounding real estate is expected to continue.

Originally targeted for completion around 2030, timelines for the New Murabba district have already extended toward 2040 as the kingdom adjusts to the scale and complexity of the undertaking.

Shift in Vision 2030 spending strategy

The Mukaab suspension comes amid a broader recalibration of Saudi spending priorities. Rather than pressing forward aggressively on ultra-large conceptual projects, authorities appear increasingly focused on developments that are more commercially grounded or tied to major global events and pragmatic infrastructure needs.

These include preparations for Expo 2030, infrastructure build-outs ahead of the 2034 FIFA World Cup, the mixed-use Diriyah Gate zone and the tourism and entertainment hub Qiddiya.

Why This Matters

The Mukaab was a signature symbol of Saudi Arabia’s Vision 2030 — a blueprint to diversify the economy away from oil toward tourism, technology and culture. Its suspension signals a more cautious approach by policymakers and investors, emphasizing capital efficiency, execution risk and near-term returns.

For global investors and construction partners, the review could mean renegotiated contracts, phased funding plans or reconfigured designs. It also underscores how rising costs and fiscal discipline are shaping the trajectory of the kingdom’s long-term development ambitions.

Summary

• Saudi Arabia has suspended construction of the landmark Mukaab megaproject in Riyadh, pending a funding and feasibility review. 
• The pause affects all work beyond early excavation and foundational pilings, though the wider New Murabba district development continues.
• The shift reflects broader fiscal discipline and a PIF priority shift toward projects with clearer near-term returns. 
• Timelines for New Murabba have extended toward 2040 from an original 2030 target.

FAQs

Q1. What is the Mukaab project?

The Mukaab is a proposed 400-metre cube structure at the heart of the New Murabba development in Riyadh — designed to house immersive digital, retail, hospitality and entertainment spaces.

Q2. Has construction been canceled?

No official cancellation has been announced, but work beyond early grounds and pilings has been paused as financing and feasibility are reviewed.

Q3. Why is the project under review?

The review reflects recalibration of priorities amid fiscal pressures and a focus on projects with clearer near-term returns and commercial viability.

Q4. Does the rest of New Murabba development continue?

Yes, the broader mixed-use district’s development is expected to continue, though large-scale targets have shifted later.

Q5. What was the original timeline for New Murabba?

New Murabba was originally targeted for completion by 2030, but revised expectations now point toward 2040.