RIYADH: Saudi Arabia has suspended planned construction of a colossal cube-shaped skyscraper at the center of a downtown development in Riyadh while it reassesses the project’s financing and feasibility, four people familiar with the matter said.
The Mukaab, at the center of Riyadh’s New Murabba development, is the latest fantastical gigaproject linked to Saudi’s Vision 2030 to be curtailed or delayed as the kingdom’s $925 billion sovereign wealth fund scales back ambitions to manage costs and prioritize spending.
The kingdom is pivoting from heavy expenditure on futuristic projects that have dominated Crown Prince Mohammed bin Salman’s Vision 2030, such as NEOM’s The Line, to initiatives seen as more pressing and potentially profitable.
Projects in focus now include infrastructure for World Expo 2030 and the 2034 World Cup, the sprawling $60 billion Diriyah mixed-use cultural zone and the Qiddiya tourism megaproject, five people familiar with the matter said. The repositioning also reflects mounting fiscal pressures as oil prices remain well below levels needed to fund the ambitious transformation agenda. The Mukaab was planned as a 400-metre by 400-metre metal cube containing a dome with an AI-powered display, the largest on the planet, that visitors could observe from a more than 300-metre-tall ziggurat - or terraced structure - inside it.
“When you enter Mukaab, you enter another world,” CEO Michael Dyke told attendees at a Riyadh conference in December, acknowledging difficulties realizing the project.
“Trying to solve for something that doesn’t exist today, that’s quite challenging,” he said.
Its future is now unclear, with work beyond soil excavation and pilings suspended, three of the people said. Development of the surrounding real estate is set to continue, five people familiar with the plans said.
The sources include people familiar with the project’s development and people privy to internal deliberations at the PIF.
Officials from PIF, the Saudi government and the New Murabba project did not respond to requests for comment.
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