The pixelated font is called square kufic. Kufic script in general is very angular as opposed to flowing, think monospace font vs cursive. You see this in classical mosaics as well as modern decorated buildings, having the straight/right-angle thing going on is either more complementary for being part of the architecture or is a material constraint of having square tile to work with or trying to make sure you're applying the text to the building in a way that is "plumb square".

So Reem Kufic is a modern font that has the same goal as the classical, square kind.