Arabia Saudí introduce cambios radicales en uno de sus proyectos más emblemáticos de Riad

Saudi Arabia's investment fund, the Public Investment Fund (PIF), has announced significant changes to one of its most prominent Riyadh projects, New Murabba. The British CEO, Michael Dyke, who had led the project for less than three years, has been replaced by Sabah Barakat, a veteran of the PIF. Barakat, who oversees a $50 billion+ project that includes plans for a 400x400 meter structure known as Mukaab, has assumed the role of interim CEO.

This move comes after the PIF conducted a review of over 100 companies and projects in its portfolio, many of which have faced delays and cost overruns. The fund has been pressured to generate returns after a decade of heavy spending and is re-evaluating its projects to prioritize and postpone others. The PIF is shifting away from large-scale, speculative infrastructure projects towards a greater reliance on domestic leadership and capability.

There is a trend of reducing expatriate presence across the portfolio as cuts are made to projects. This year, the sovereign fund has replaced foreign executives in several companies, including Alat, which aims to invest $100 billion in advanced manufacturing by 2030. Some of the kingdom's grandiose development projects, including Neom, are also being reduced or delayed.

Despite leading the plans for the new urban center, the PIF's priorities have changed as it tries to manage its massive financial commitments and prepare the kingdom for Expo 2030 and the FIFA World Cup in 2034. The prince's announcement of New Murabba in February 2023 aimed to develop the world's largest modern urban center in Riyadh as part of his Vision 2030 plan to transform the country.

The central piece was to be the 400x400 meter Mukaab, considered one of the largest structures ever built, but construction has been delayed. A source close to the situation said that the changes in direction are part of a consolidation process in the PIF's national real estate portfolio. The reason for these changes is that costs for Mukaab have soared by 100% and the project has stalled.

The master plan for New Murabba, which aims to accommodate over 280,000 people once completed in 2040, was approved by its board of directors in early 2023 and was expected to be developed in stages. Knight Frank estimated in 2023 that New Murabba would cost $50 billion. New Murabba confirmed to The Financial Times that Barakat's appointment occurred in accordance with the company's governance framework and is consistent with its long-term strategic plans.

The operations, alliances, and strategic direction of the company remain unchanged. Barakat is also CEO of Roshn, a real estate promoter that is part of the PIF's five "gigaprojects". David Grover, a British-origin CEO of Roshn, was dismissed in 2024.