Saudi Arabia Halts Construction on Mukaab Skyscraper Project in Riyadh

Mukaab Skyscraper Construction Halted

Riyadh, Saudi Arabia – Saudi authorities have reportedly halted construction on the ambitious Mukaab skyscraper project, a planned centerpiece of the New Murabba downtown development in Riyadh. The suspension comes as the kingdom undertakes a comprehensive review of its Vision 2030 megaprojects, with sources indicating a reassessment of the project's financing and feasibility.

Reports, primarily from Reuters, emerged in late January 2026, stating that work on the colossal cube-shaped structure, beyond initial soil excavation and pilings, has been put on hold. While the main Mukaab structure faces an uncertain future, development of the surrounding real estate within the broader New Murabba district is expected to continue.

Vision and Scale of the Mukaab

The Mukaab, Arabic for 'cube,' was unveiled in February 2023 as a landmark project designed to redefine Riyadh's skyline. It was envisioned as a 400-meter (1,300-foot) tall, wide, and long cube, making it one of the largest built structures globally by volume. The design, inspired by modern Najdi architectural style, aimed to house an immersive destination featuring digital and virtual technology, including an AI-powered display. The interior was planned to encompass 2 million square meters of floor space, large enough to contain 20 Empire State Buildings.

The New Murabba development, of which the Mukaab was the focal point, was projected to add SAR180 billion to Saudi Arabia's non-oil GDP and create 334,000 direct and indirect jobs by 2030. The estimated cost for the entire New Murabba district was approximately $50 billion.

Reasons Behind the Suspension

The decision to pause construction on the Mukaab is attributed to a strategic reassessment by the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, which is recalibrating its investment priorities. This shift is influenced by mounting fiscal pressures, with oil prices remaining below levels deemed necessary to fund the kingdom's ambitious transformation agenda.

The PIF is reportedly pivoting its focus from highly futuristic and experimental developments towards initiatives considered more immediately practical and profitable. These include infrastructure preparations for the World Expo 2030 in Riyadh, the 2034 FIFA World Cup, and other large cultural and tourism zones such as the $60 billion Diriyah project.

Broader Implications for Vision 2030

The Mukaab is not the only megaproject under review. The suspension is part of a broader trend of adjustments to Saudi Arabia's Vision 2030 initiatives. Other projects, such as NEOM's The Line and Trojena, have also experienced delays or significant scaling back. The initial completion date for the New Murabba district has been pushed back from 2030 to 2040.

Despite the halt on the main Mukaab structure, the New Murabba Development Company (NMDC), a PIF subsidiary, recently issued a Request for Information (ROI) for modular and offsite fit-out solutions for the towers encompassing the Mukaab development, indicating that planning for surrounding elements may still be active. Saudi Economy Minister Faisal al-Ibrahim previously stated that the kingdom would be transparent about shifting, delaying, or rescoping projects.