Saudi finance ministry has resumed payments to Saudi Binladin Group (SBG), the kingdom's biggest construction firm, for its work on government projects, according to a Reuters report which cited a local newspaper. The positive news for SBG and its employees comes at a critical time for the company.
Construction Week issued it's Power 25 list for Saudi Arabia identifying "KSA's most active players operating within the Kingdom's construction center." El Seif Engineering Contracting was ranked #2 behind the Bin Laden Group.
Custodian of the Two Holy Mosques King Salman on Tuesday ordered that top officials of the Saudi Binladin Group be banned from traveling outside the kingdom after an investigation found the construction company partially to blame for Friday’s deadly crane crash in Mecca.
Saudi Arabia's Eastern Province municipality is planning a model city comprising a residential, economic and tourism center in Half Moon Bay, Al-Aziziyah district, which is expected to create up to 90,000 jobs when complete.
The Saudi Binladin Group (SBG) is facing its toughest challenges in the construction giant’s 85 years of operation as tightened government spending and a 8-month restriction on new projects in the pipeline has undermined the company's finances.
Foreign governments are pressing both government authorities and company executives in Saudi Arabia “to ensure that local construction firms make delayed salary payments to thousands of workers, a sign of pressure on the kingdom’s economy due to low oil prices,” according to a Reuters report.
Saudi Arabia has reportedly made good on $10.7 billion that it owed to private sector companies, according to Arab News, but one construction firm said on Monday that it wrote directly to the Deputy Crown Prince warning it may need to cease operations.
Saudi businessman and Chairman of the Council of Saudi Chambers of Commerce, Dr. Abdulrahman al-Zamil, has written a letter to Saudi Arabia's King Salman requesting that he intervene to ensure that the government makes delayed payments to construction companies.