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Saudi Binladin Group denies reports of government take over

Saudi Arabia - January 16, 2018
Saudi Binladin Group

Saudi Binladin Group (SBG) has announced in a statement to a local media that the company may have settled outstanding dues to the government and that it remains a private sector company. No details of the settlement were released though.

Some media outlets have issued unofficial reports previously suggesting that the Saudi government had taken over SBG. The firm denied those reports stating that it remains a private company owned by its shareholders.

In the statement, the Saudi group also reiterated that contracted work with the government is ongoing.

Some of the projects ongoing with the government at the moment are the two holy mosques and the Zamzam rehabilitation, due to be completed before Ramadan 2018.

The crash in oil prices a couple of years ago caused the Saudi government, The company’s main client, to delay contracts. As a result, SBG had struggled to pay workers that year and even had to lay off thousands of workers.

An additional blow hit the company when it was excluded from new government contracts after a crane accident in The Holy Mosque in 2015. However, SGB was cleared as being responsible for the crash by The Saudi Court.

Nonetheless, the company is currently restructuring its governance and executive management team to meet its commitment toward all stakeholders.

 

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