JAKARTA — The Saudi Arabian Ministry of Finance has substantially increased its ownership in the country’s largest construction firm, Binladin International Holding Group, raising its stake to 86.38%, according to government television reports cited by Reuters on Monday, December 29, 2025. The transaction has been characterized as a debt-to-equity conversion deal.

Neither the Ministry of Finance nor Binladin Group provided immediate commentary on the development.

Details Remain Limited

Government television outlets did not disclose financial specifics or indicate the exact volume of shares acquired through this conversion. Previous media reports had suggested the state held approximately 36% ownership in the construction conglomerate.

Government Support Through Syndicated Loan

The nation’s National Debt Management Center arranged a syndicated loan facility totaling roughly 23.3 billion riyals (equivalent to US$6.21 billion) in October of last year. This financing enabled the Finance Ministry to provide crucial support to Binladin, as the construction industry plays a vital role in Saudi Arabia’s ambitions to expand tourism and diversify its economy beyond oil revenue dependence.

Financial Challenges and Historical Context

The conglomerate has encountered significant financial difficulties stemming from stalled projects and delayed payments, consequences of declining international oil prices. These economic headwinds have severely impacted the company’s liquidity and operational capacity.

Adding to its challenges, the Binladin Group was temporarily barred from securing new government contracts following a devastating crane accident at the Grand Mosque in Mecca in 2015, which claimed 107 lives. This incident significantly affected the company’s reputation and business prospects.

Strategic Importance

The government’s increased stake underscores the strategic importance of maintaining a robust construction sector as Saudi Arabia pursues its economic transformation agenda. The construction industry remains fundamental to the Kingdom’s Vision 2030 initiative, which seeks to modernize infrastructure, develop tourism destinations, and create a more diversified economic base.

The substantial government intervention through debt conversion demonstrates the authorities’ commitment to stabilizing key industries while addressing the financial distress of major national enterprises.

Original Article:

Kontan.co.id. (2025, December 29). Kementerian Keuangan Arab Saudi Tambah Kepemilikan Saham di Grup Binladin di Atas 86%.  Retrieved from https://internasional.kontan.co.id/news/kementerian-keuangan-arab-saudi-tambah-kepemilikan-saham-di-grup-binladin-di-atas-86