Binladin International Holding Group, parent company of Saudi Binladin Group, is embarking on a restructuring and recapitalisation programme in a bid to revive the fortunes of the kingdom's biggest contracting company.
Saudi Arabia's government, through its finance ministry, has taken a 36.22 per cent stake in the holding company, with the remaining 63.78 per cent owned by the Binladin Company for Development and Commercial Investment. Houlihan Lokey, a US-based investment bank with an expertise in restructuring, has also been appointed to work on the group's recapitalisation.
“Through the establishment of the transformation programme, we have identified and put in place the foundations necessary to carry out comprehensive due diligence to ensure the success of the ongoing recapitalisation of SBG," Khalid AlGwaiz, chief executive of BIHG, said in a statement on Tuesday.
Saudi Binladin Group has a 90-year history in the kingdom and has worked on many of its most prestigious projects including the extension of the Holy Mosque in Makkah, King Abdullah Financial District, Princess Norah University and Al Faisaliah Tower in Riyadh, the expansion of King Abdulaziz International Airport in Jeddah and the building of King Abdullah Economic City near Rabigh on the Red Sea coast.
The company has struggled financially in recent years since the drop in oil prices in 2014 and a reassessment of the kingdom's project pipeline ahead of the drawing up of its Vision 2030 strategy led to a slowdown in work.
Contract awards in Saudi Arabia dipped from 250 billion riyals in 2015 to just over 100bn riyals per year for the next three years, before recovering last year with 197bn riyals of new awards, according to US-Saudi Business Council data.
BIHG's restructuring will have three clear objectives, it said. The first will be to re-establish its position as the kingdom's national and regional construction champion, highlighting its "vital role" in helping to realise Saudi Arabia's Vision 2030 ambitions. Second will be to use more of the group's huge land bank, particularly in prime locations such as in Makkah. The third objective will be to maximise the value of businesses within the group, strengthening existing management teams, exploring strategic partnerships and joint ventures or selling off assets deemed to be non-core.
Alongside Mr AlGwaiz's appointment as the holding company's new chief executive, Abdulrahman Bajunaid has been named chief executive of its real estate business and Samer Khawashki has been appointed as chief executive of investments.
“We remain mindful that this roadmap is by no means an easy feat. However, we are also confident in the collective expertise of our leadership and operational teams, as well as those of the global consultants we have enlisted as valued counsel," said Mr AlGwaiz.
“Saudi Arabia is amongst the largest in the GCC with regards to the size of the infrastructure and construction industry, with more than $825bn worth of planned and unawarded contracts," he said. "BIHG is well positioned to carry SBG’s great legacy as a national champion forward to lead this sector and capture its growth."
The finance ministry's stake in the group will be held through a subsidiary, Istidama Holding Company.
UAE currency: the story behind the money in your pockets
RIVER%20SPIRIT
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Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
match details
Wales v Hungary
Cardiff City Stadium, kick-off 11.45pm
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
THE DETAILS
Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5
Read more from Aya Iskandarani
Company%20profile
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%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4-litre%20twin-turbo%20V8%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%208-speed%20auto%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E470hp%2C%20338kW%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20620Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh491%2C500%20(estimate)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
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Women%E2%80%99s%20T20%20World%20Cup%20Qualifier
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Killing of Qassem Suleimani
The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
