The one time leader in Saudi Arabia’s construction market, Saudi Binladin Group, will be slimmed down and renamed, according to an exclusive Reuters report, which cited six sources familiar with the matter.
The government seized management control of the construction giant from the chairman and other family members after they were detained in anti-graft arrests last year.
The moves would be the first in a broad restructuring planned for Saudi Arabia’s biggest builder as Riyadh takes a stake of at least 35 percent, Reuters reported in March. “Riyadh’s move to take control appears aimed at ensuring the group can continue to serve Saudi Arabia’s development plans, said banking and industry sources, who declined to be named due to the political and commercial sensitivity of the matter,” according to Reuters.
SBG’s troubles were seriously compounded on September 11th, 2015 when a violent storm in Mecca caused a crane to collapse in the holy city, killing 111 people, and deeply troubling King Salman. Resulting bans on travel for top executives and the prevention of new contracts being awarded to the construction group suffocated its bottom line.
A five-member committee comprised of two Binladin brothers and three independent businessmen to further restructure the firm has been set up by Saudi Arabia’s Ministry of Finance.