Saudi Edition 
Egypt Edition 
UAE Edition 
MENA <> India Corridor 
Logistics (MENA) 
Climate (MENA) 
Share
Read Full Issue 
It seems gigaprojects in Riyadh are not immune to the recalibration wave, as was once thought. Unnamed sources told Reuters plans to construct the Mukaab — the cube-shaped skyscraper lying at the center of the New Murabba development in the capital — have been put on hold until the government takes another look at whether the project’s financials make sense.
The details: All construction work on the metal cube — touted to be “the world’s largest building by area,” spanning over 2.6 mn sqm of floor space — is reportedly suspended, save for soil excavation and pilings.
Why it matters
The suspension would be the latest in a series of adjustments to timelines and scopes of megaprojects. Economy Minister Ibrahim Al Faleh said last week on the sidelines of Davos that the changes were driven by concerns of overheating the Kingdom’s economy. “We don’t want to overheat the economy, we don’t want value leakage by creating increased import pressure, and we don’t want to create an inflationary environment,” he told the newswire.
Delays and suspensions are hitting many gigaprojects at this point: Just this week, reports have been mounting of plans to rethink Neom to be a data center hub to serve the Kingdom’s AI ambitions and crunch down its futuristic city The Line. The 2029 Asian Winter Games have also been postponed indefinitely as Neom’s ski resort Trojena is also facing delays.
What’s new here is the location: The Mukaab is part of the New Murabba district set to be located at the heart of Riyadh, estimated by Knight Frank to cost a total of USD 50 bn, with USD 100 mn already commissioned. Pundits were expecting the capital’s projects to continue on their path, unaffected by the reviews, in addition to time-sensitive developments such as infrastructure for the 2030 World Expo and the 2034 World Cup.
Real estate is a different matter
While the Mukaab’s suspension casts doubts, sources are saying real estate development is planned to continue normally in the district. Earlier plans showed the district would span over 14.1 sq km and include some 104k residential units.
It makes sense: With efforts underway to reform Saudi’s real estate market in a bid to rebalance supply and demand and resolve the affordability crisis, especially in the capital, it’s unlikely development of new residential units will be hit by the ongoing revisions.
