Saudi Arabia has appointed a new acting chief executive for New Murabba, one of Riyadh’s major real estate developments, marking a broader restructuring within the country’s sovereign wealth fund portfolio. Sabah Barakat, a veteran executive from the Public Investment Fund (PIF), has replaced Michael Dyke, a British national who had led the project since December 2023.
New Murabba is a flagship initiative within Saudi Arabia’s Vision 2030 plan, aimed at creating what Crown Prince Mohammed bin Salman described as “the world’s largest modern downtown.” Central to the $50 billion development is the Mukaab, an ambitious 400-by-400-meter cubic structure intended to be one of the largest built forms globally. However, the project has experienced delays and significant cost overruns, reportedly doubling the initial budget for the Mukaab and stalling progress.
The realignment comes as the PIF, chaired by Crown Prince Mohammed, reevaluates its vast portfolio of more than 100 companies and projects launched over the past decade. Many have encountered difficulties such as delays and escalating expenses. Under pressure to deliver sustainable returns after extensive spending, the fund is prioritizing projects more selectively while scaling back or postponing others, including some of the crown prince’s high-profile developments like the Neom city project.
A source familiar with the matter described the shift as a strategic move toward relying more heavily on Saudi-based leadership and capabilities, rather than large-scale, speculative infrastructure schemes managed by expatriates. This reflects a broader trend within the PIF to reduce foreign executive involvement across its subsidiaries amid a general contraction of project scopes.
The leadership change at New Murabba is seen as part of this consolidation process in the sovereign fund’s domestic real estate assets. The master plan for the development, which aims to accommodate more than 280,000 residents by 2040, was approved earlier this year and is expected to advance in stages.
Barakat’s appointment aligns with New Murabba’s governance framework and strategic objectives, the company said in a statement, emphasizing continuity in its operations and partnerships. In addition to his new role at New Murabba, Barakat currently serves as acting CEO of Roshn, another PIF-backed real estate “gigaproject.” This follows the dismissal of Roshn’s previous British-born CEO, David Grover, in 2024.
Dyke’s previous experience included managing interests in the UK’s High Speed 2 rail project, which has been marred by delays and budget overruns similar to challenges faced at New Murabba. The transition in leadership underscores the PIF’s attempt to recalibrate its development strategy as Saudi Arabia prepares for upcoming milestones such as Expo 2030 and the 2034 FIFA World Cup.