meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Binladin Group makes a comeback

8 November 2024

 

Register for MEED's 14-day trial access 

The Saudi Binladin Group (SBG) has undergone a dramatic revival over the past year with the award of high-profile construction contracts and financial support from the Saudi government.

Founded in 1931 by Muhammad Bin Ladin, SBG grew to become Saudi Arabia’s largest construction company with a reputation for delivering large programmes of work for the government and leading figures within Saudi Arabia.

SBG’s fortunes declined following the oil price crash of 2014-15 and the collapse of an SBG crane at the Grand Mosque of Mecca, which resulted in a temporary ban on the contractor taking on new projects.

As its finances deteriorated, SBG hired US-headquartered Houlihan Lokey as the adviser for its SR56.4bn ($15bn) debt restructuring programme in April 2020.

These challenges combined meant the contractor was unable to regain its position as the go-to contractor for the Saudi Arabian government.

Financial support

Financially, the big turning point came in late October when Saudi Arabia’s National Debt Management Centre (NDMC) announced that it had completed arranging a syndicated loan facility for the Ministry of Finance to support SBG.

In an official statement, NDMC said that the loan facility amounting to SR23.3bn ($6bn) has been secured with several local and international banks.

The support includes a series of arrangements to settle the firm’s outstanding amount with banks, provide loans to the firm and potentially increase the government’s stake in the company.

The move to announce financial support follows the Ministry of Finance’s announcement in July, which outlined an intention to improve SBG’s financial capacity. The injection of cash into the firm will also enable it to improve its financing for various other projects in the kingdom.

The government has a vested interest in SBG’s fortunes. In 2019, a parent company known as Binladin International Holding Group (BIHG) was formed. That entity is owned by Istidama, an investment arm of the Ministry of Finance. The remaining 63.78% is owned by the Binladin Company for Development & Commercial Investment. Its subsidiaries include SBG.

In addition to SBG’s finances being shored up, over the past year the contractor’s orderbook has grown with several high-profile awards.

Jeddah Tower

While the financial turning point came at the end of October, the key moment symbolically came on 2 October, when SBG was appointed to complete the world’s tallest tower, the 1,000-metre-plus Jeddah Tower.

SBG was the original contractor on the project before construction work stalled in 2018. This left the tower’s superstructure about one-third complete, with 63 floors built out of 157.

The SR7.2bn ($2bn) contract award to complete the record-breaking structure took many in the market by surprise after it was reported that a joint venture of China State Construction Engineering Corporation and the local El-Seif Engineering Contracting was the frontrunner for the contract.

The Ministry of Finance’s support was crucial for the project client, giving the contract financial credibility. This allowed it to put together a winning proposal to complete the tower with a reduced programme and a more competitive price.

There were also practical reasons for selecting the original contractor on the project, according to Kingdom Holding’s CEO Talal Ibrahim Almaiman. SBG already has offices established on-site and, as a Jeddah-based company with a long history of delivering major projects in Saudi Arabia, it has well-established connections with the local supply chain.

The Jeddah Tower award followed important contract awards a year earlier. In October 2023, SBG won contracts totalling about $1.3bn from Saudi Entertainment Ventures (Seven), a wholly owned subsidiary of the Public Investment Fund (PIF).

The contracts were awarded to build Seven’s two entertainment destinations in the Dammam and Alkhobar regions in the kingdom’s eastern province.

The entertainment complex in Alkhobar will be built on reclaimed land on the waterfront. It will span around 300,000 square metres (sq m) and is also known as “The Waves”.

The Dammam entertainment complex spans 360,000 sq m and will also be built on reclaimed land on the Dammam waterfront.

SBG also has historical work. It is delivering the third Mecca Grand Mosque expansion programme after resuming construction activities at the project site following this year’s Hajj pilgrimage.

The first section is understood to include expansion works for the main building, with the second and third sections of the programme covering ancillary, security, media, hotel and hospital buildings, among others.

The programme to expand the Mecca Grand Mosque was reportedly launched in 2011 by the late King Abdullah Bin Abdulaziz. It faced delays following the crane collapse at the mosque in September 2015, with work resuming in late 2019.

King Salman Bin Abdulaziz Al-Saud launched five projects in July 2015 as part of the third expansion programme. These projects covered an estimated built-up area of 1.47 million sq m.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12878436/main.jpg
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Aramco seals $11bn lease deal for Jafurah gas assets

    15 August 2025

    Register for MEED’s 14-day trial access 

    Saudi Aramco has signed an $11bn lease-and-leaseback deal for gas processing facilities at its Jafurah unconventional gas reserve, with a consortium led by funds managed by Global Infrastructure Partners (GIP), part of US asset manager BlackRock.

    Under the transaction, a newly formed subsidiary – Jafurah Midstream Gas Company (JMGC) – will lease development and usage rights to the Jafurah field gas processing plant and the Riyas natural gas liquids (NGL) fractionation facility.

    After 20 years, JMGC will lease the assets back to Aramco. JMGC will receive a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from the Jafurah resource base.

    Aramco will hold a 51% majority stake in JMGC, while investors led by GIP will hold the remaining 49%.

    “The transaction, which will not impose any restrictions on Aramco’s production volumes, is expected to close as soon as practicable, subject to customary closing conditions,” Aramco said in a statement on 14 August.

    This is GIP’s second oil and gas investment in Saudi Arabia. Previously, GIP’s parent company, BlackRock, led a consortium including Saudi Arabia’s Hassana Investment Company in a similar $15.5bn lease-and-leaseback deal for Aramco’s natural gas pipeline network.

    Under the December 2021 agreement, the BlackRock-led consortium acquired a 49% stake in Aramco Gas Pipelines Company, with Aramco retaining 51%. The consortium holds a 20‑year lease on the pipeline network, after which usage rights revert to Aramco.

    Jafurah unconventional gas base

    Located in Saudi Arabia’s Eastern Province, the Jafurah basin is the largest liquid-rich shale gas play in the Middle East, spanning around 17,000 square kilometres. The reserve is estimated to contain 229 trillion cubic feet of gas and 75 billion stock-tank barrels of condensate.

    The Jafurah project is central to Aramco’s goal of increasing gas production capacity by 60% between 2021 and 2030 to meet rising global demand. The company expects lifecycle investment in Jafurah to exceed $100bn.

    In February 2020, Aramco received a capital expenditure grant of $110bn from the Saudi government for the long-term phased development of the Jafurah unconventional gas resource base.

    “Jafurah is a cornerstone of our ambitious gas expansion programme, and the GIP-led consortium’s participation as investors in a key component of our unconventional gas operations demonstrates the attractive value proposition of the project,” Amin H Nasser, Aramco president and CEO, said.

    “As Jafurah prepares to start phase one production this year, development of subsequent phases is well on track. We look forward to Jafurah playing a major role as a feedstock provider to the petrochemicals sector, and supplying energy required to power new growth sectors, such as [artificial intelligence] AI data centres, in the kingdom,” Nasser said.

    ALSO READ: Contractors extend bid validity for Jafurah fourth expansion project

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14478930/main4648.jpg
    Indrajit Sen
  • UAE tenders carbon-capture-ready power plant

    15 August 2025

    Emirates Water & Electricity Company (Ewec) has issued a request for proposals (RFP) for the development of the Al-Nouf independent power producer (IPP) project.

    Al-Nouf will be the largest single-site, carbon-capture-ready combined-cycle gas turbine (CCGT) plant in the UAE. 

    It will be located within the newly established Al-Nouf complex, a coastal site strategically designated to become a major hub for power and water production in the Emirate of Abu Dhabi. 

    The site has been carefully selected for its ability to accommodate both seawater-cooled power generation and reverse osmosis (RO) desalination technologies.

    Ewec said the project will closely follow the model of Abu Dhabi’s successful IPP programme, in which developers enter into a long-term agreement with Ewec as the sole procurer. 

    It will involve the development, financing, construction, operation, maintenance and ownership of the plant, with the successful developer or developer consortium owning up to 40% of the entity. The remaining equity will be held indirectly by the Abu Dhabi government.

    The advanced plant is designed to deliver greater efficiency, operational flexibility and lower emissions. It will enable the further integration of renewable and clean energy by primarily providing transitional capacity. 

    It will also have the capacity to support multiple utility-scale energy and desalination projects in the future.

    Expected to begin commercial operations in Q3 2029, Al-Nouf’s high-efficiency natural gas turbine technology will generate up to 3.3GW of electricity.

    The RFP shared with bidders outlines comprehensive requirements and technical parameters, encouraging the integration of artificial intelligence, where relevant, to enhance plant performance, operational efficiency and predictive maintenance. 

    The project is also expected to leverage technologies such as digital twinning and advanced monitoring systems to optimise lifecycle performance and system resilience. 

    To ensure timely project development following the award, Ewec said it has proactively reserved gas turbines for the Al-Nouf project.

    Responses to the RFP are expected by Q4 2025.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14478376/main5331.jpg
    Mark Dowdall
  • Saudi Arabia invites Riyadh stadium PPP interest

    15 August 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Ministry of Sport (MoS), in collaboration with the National Centre for Privatisation & PPP (NCP) and the Riyadh Region Municipality, has issued an expression of interest and request for qualifications notice for the development of the Prince Faisal Bin Fahad Sports City in Riyadh.

    The project will be delivered as a public-private partnership (PPP) under a design, build, finance, operate and maintain model, with a contract duration of 20 to 30 years.

    The notice was issued on 14 August, with a submission deadline of 13 October.

    The project involves the construction of a stadium in the north of King Abdullah Park in the Al-Malaz area of Riyadh.

    The stadium will have a capacity of about 47,000 spectators.

    It will host major domestic and international football events, including matches during the 2034 Fifa World Cup.

    The scheme is the first of several stadiums expected to be delivered on a PPP basis in preparation for the 2034 Fifa World Cup in Saudi Arabia.

    In July, the MoS and NCP announced the winning bidders for the rights to own and operate three sports clubs in the kingdom.

    The agreement marks the first time a foreign investor has owned a Saudi football club, with US-based investment firm Harburg Group winning ownership rights to Al-Kholood Football Club.

    The club competes in the Saudi Pro League and is based in the city of Ar-Rass, in Al-Qassim province.

    Riyadh-based firm Nojoom Al-Salam Holding will assume ownership of Al-Zulfi Football Club. The club is based in Al-Qassim province and competes in the Saudi First Division League, the second tier of the Saudi Arabian football league system.

    Medina-based firm Awdah Al-Biladi & Sons acquired ownership of Al-Ansar Football Club. The club is based in Medina and plays in the Saudi Second Division, the third tier of Saudi Arabia’s football league.

    Saudi PPP market

    The value of PPP contracts in Saudi Arabia has risen sharply over the past two years, as the government seeks to develop projects through the private sector and diversify funding sources.

    According to data from regional projects tracker MEED Projects, the value of PPP concession contracts hit an all-time high of $28.2bn in 2023, equivalent to more than 23% of the total value of all project contracts awarded that year. Although this figure fell to 18.3% last year, it was still far higher than the historical average in the kingdom.

    The figures are even more striking when considering only government spending.

    The value of signed PPP contracts totalled more than one-third of government or government-related project awards in 2023, and more than one-quarter in 2024. This compares to an average of 15.6% between 2019 and 2022, and just 3.5% in 2018.

    Government contracts include awards made by ministries, municipalities and royal commissions, in addition to state-funded project clients such as the Saudi Water Authority, National Housing Company and Jeddah Airports Company. Subsidiaries of the sovereign wealth vehicle, the Public Investment Fund – such as Neom and Rua Al-Madinah – are also included.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14478237/main.jpg
    Yasir Iqbal
  • Syria charts post-war reconstruction course

    14 August 2025

     

    On 7 August, Syria signed a $4bn memorandum of understanding (MoU) to develop and expand Damascus International airport with a consortium comprising Qatari, Turkish and US-based companies.

    The MoU was the latest of several foreign investment agreements signed in recent months, following the toppling of the Bashar Al-Assad government in December.

    Since then, Syria’s new president, Ahmed Al-Sharaa, has overseen a political transition and made groundbreaking progress in reaching agreements, most critical of which was the rollback of EU and US sanctions.

    For decades, the sanctions have kept Syria severely isolated from the global financial system and crippled its economy, while today, they are a critical hindrance to the reconstruction efforts needed after more than a decade of conflict.

    The pivotal moment came in May when US President Donald Trump announced his intention to lift all US sanctions on Syria.

    This decision came after consultations with Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud and Turkish President Recep Tayyip Erdogan, and in conjunction with a pre-arranged visit by Al-Sharaa to Saudi Arabia to meet with Trump in Riyadh.

    A few weeks later, the EU also announced the lifting of its economic sanctions on Syria. The move removed a major obstacle to the ability of the government in Damascus to restart the Syrian economy and access the international financial aid and support necessary to begin rebuilding the country and its infrastructure.

    Shortly afterwards, Syria completed its first international bank transfer in 14 years using the Swift network, marking a significant milestone in the economic rehabilitation of the country following its emergence from civil war and sanctions.

    This direct commercial transaction was conducted from a Syrian bank to an Italian bank on 15 June, as confirmed by Syria’s Central Bank governor, Abdelkader Husriyeh.

    The US formally lifted most of its sanctions on Syria in July through an executive order signed by Trump. The move largely dismantled a system in place since 2004 and formalised the pledge made by the US president in May.

    Foreign investment agreements

    Wider international relations hold the key to the Syrian economy’s prospects. In particular, Gulf countries are a potential source of investment that Al-Sharaa is keen to exploit, and Qatar, Saudi Arabia and the UAE have been making the running.

    In July, Saudi Arabia signed over 47 investment agreements, worth more than SR24bn ($6.4bn), as part of its commitment to rebuilding Syria. The agreements cover sectors including real estate, infrastructure, finance, communications and information technology, energy, industry, tourism, trade and investment, and healthcare, among others.

    About $3bn of the total investment has been earmarked to be spent on rebuilding Syrian infrastructure that was badly damaged in the war. As part of the deal, Saudi Arabia will also construct three new cement factories in the country.

    Another $1bn will be invested by Saudi Arabia-based telecommunications companies to upgrade Syria’s telecom sector.

    Other sectors, including agriculture and finance, are also expected to benefit from these agreements.

    The investment agreements with Saudi Arabia follow Syria’s signing of a $7bn energy deal with a consortium of Qatari, Turkish and US-based companies to help revive its electricity sector.

    In May, Syria’s Energy Ministry signed a $7bn MoU with a consortium led by Qatar’s UCC Holding to develop 5GW of power generation capacity – doubling the country’s output – by constructing new gas and solar power plants.

    The agreement covers the development of four combined-cycle gas turbine power plants in Traifawi, Homs and Zayzoun, Deir-Azzour and Mehardeh in Hama, with an installed capacity of 4GW, and a 1GW solar power plant in Wedian Al-Rabee in the southern region of Syria.

    The projects will be implemented under build-own-operate and build-operate-transfer models alongside power-purchase agreements. Following final agreements and financial close, completion is expected within three years for the gas plants and two years for the solar plant.

    A UCC Holding-led group also signed a $4bn MoU to develop and expand Damascus International airport.

    The consortium comprises UCC Holding as the primary developer; three Turkish partners, Cengiz, Kalyon and TAV; and the US-based Assets Investments USA.

    The project will be implemented under a build-operate-transfer model and covers the expansion of the Damascus International airport in five phases.

    The expansion will ultimately increase the airport's capacity to handle 31 million passengers annually.

    The agreement also includes the construction of a 50-kilometre road leading to the airport and $250m in financing to purchase up to 10 Airbus A320 aeroplanes for Syrian Airlines.

    UAE ports operator DP World also signed an agreement in July with Syria’s General Authority for Land & Sea Ports to develop a port in the city of Tartous.

    The estimated $800m deal will allow DP World to develop, manage and operate a multipurpose terminal in Tartous. The concession period is 30 years. The deal also includes cooperation in establishing industrial and free trade zones. 

    The recent signing of agreements by Syria to attract foreign investments marks a pivotal step towards economic revitalisation, signalling a potential shift in the nation's post-conflict recovery and a renewed commitment to fostering international partnerships for sustainable development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14469581/main.gif
    Yasir Iqbal
  • Contractor wins $77m Bahrain highway expansion

    14 August 2025

     

    Bahraini construction firm Haji Hassan Group has secured a BD29m ($77m) contract to expand the Budaiya Highway project in Bahrain.

    The contract was awarded by the Bahrain Ministry of Works.

    The project involves the widening of the highway to a dual, three-lane carriageway road, including upgrading all junctions and storm drainage systems.

    The scope also covers the construction of three footbridges, street lighting and utility diversion for the section from Al-Qadam Roundabout to Janabiya Highway.

    Upon completion, the project is expected to increase the highway's capacity to 140,000 vehicles a day.

    According to a report by UK data analytics firm GlobalData, Bahrain’s construction industry is expected to grow by 3.5% in real terms in 2025, supported by public and private sector investments in industrial, commercial and energy construction projects, coupled with a rise in the value of awarded tenders.

    The report adds that the total value of tenders awarded grew by 145.2% year-on-year in 2024, preceded by an annual growth of 114.1% in 2023.

    The infrastructure construction sector is expected to grow by 3.5% in 2025 before registering an annual average growth of 5.4% in 2026-29, supported by investments in major road and airport construction projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14469022/main.jpg
    Yasir Iqbal