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Saudi Arabia is considering measures to stabilise the financial structure of Saudi Binladin Group, the kingdom’s largest construction conglomerate, as part of a broader strategy to support the construction of key mega-projects and infrastructure.
The ministry of finance said in a statement that the measures include helping pay off dues to banks, lending to the firm, and even potentially increasing the government’s stake.
Saudi Arabia said its move is a continuation of the support the construction sector has received in the past. It will enhance Binladin Group’s ability to complete projects, including the Two Holy Mosques, and potentially help secure financing required for other developments.
The government’s support for the construction sector is expected to enhance the completion of vital projects and create attractive investment opportunities in line with Vision 2030.
Binladin’s history has been intertwined with the kingdom since the country was founded in 1932, according to a Bloomberg report. The construction firm has played a vital role in modernising the country by building highways, airports and economic freezones, and is also known for its work in the Islamic holy cities of Mecca and Medina.
Meanwhile, the Public Investment Fund (PIF) is working with Morgan Stanley on a potential deal to buy into Binladin, said Bloomberg. The $925bn fund is considering acquiring part or all of the 36 per cent stake owned by the ministry of finance.
The company could now be vital to the country’s plans to host events such as the World Expo exhibition in 2030 and the 2034 FIFA World Cup football, which will require substantial infrastructure investments and the help of experienced builders.
Saudi Arabia plans to have 15 football stadiums ready for the World Cup, as the country anticipates being officially announced as the host in the coming months.
Riyadh, set to hold the 2030 World Expo, will host the opening and final matches at King Salman Stadium, which will be able to accommodate over 92,000 spectators once constructed.
Four other cities, including Jeddah, Al Khobar, Abha, and Neom, will host World Cup games in addition to Riyadh, the capital. All stadiums—some built from scratch and others upgraded—will have over 40,000 seats, as per FIFA requirements.
