Saudi Arabia Boosts Stake in Binladin Group Amid Strategic Debt Conversion

Saudi Arabia has significantly increased its stake in Binladin International Holding Group to 86.38% through a debt-conversion strategy. This move is part of efforts to stabilize the conglomerate as the country shifts towards tourism and reduces its oil dependency. Details of the financial deal remain undisclosed.

Saudi Arabia's finance ministry has significantly increased its stake in the nation's largest construction firm, Binladin International Holding Group, to a commanding 86.38%. This substantial change, reported as a debt-conversion agreement, was announced by state television on Monday without providing specific financial details.

Efforts to reach the finance ministry and Binladin for comments were unsuccessful, leaving questions about the exact financial implications and the percentage increase over the previous state ownership, which media reports cited at 36%. Despite the lack of detail, the move reflects broader ambitions to stabilize Binladin within the evolving Saudi economic landscape.

The country's National Debt Management Center orchestrated a syndicated loan valued at approximately 23.3 billion riyals ($6.21 billion) last October, aiming to bolster support for Binladin amid the construction sector's crucial role in Saudi Arabia's diversification from oil. Challenges, including project delays and reduced payments due to fluctuating oil prices, necessitated strategic interventions. Previously, the conglomerate faced setbacks, including being sidelined from new state contracts following a tragic crane accident at Mecca's Grand Mosque in 2015 that resulted in 107 fatalities.

(With inputs from agencies.)