Saudi Finance Ministry Increases Stake in Binladin Group to Support Construction Sector
Saudi Arabia’s Ministry of Finance has increased its ownership in Binladin International Holding, the country’s largest construction company, to 86.4%. This move was made through a debt-to-equity deal, according to a report by a local newspaper on Monday.
The report did not share exact financial details of the deal or explain how much the government’s stake increased in this latest transaction. Earlier reports said the Saudi government previously owned about 36% of the company.
In October last year, the National Debt Management Center helped arrange a large syndicated loan worth around $6.2 billion (SAR 23.3 billion). This loan was designed to support the Binladin Group during a difficult period. The move shows the government’s commitment to strengthening the construction sector, which is important for Saudi Arabia’s long-term economic plans.
The construction industry plays a major role in Saudi Arabia’s efforts to grow tourism and reduce its dependence on oil income. Many large projects, including hotels, transport networks, housing, and entertainment facilities, depend heavily on strong construction companies.
The Binladin Group has faced serious financial challenges in recent years. Several projects were delayed or stopped, and the company struggled with late payments. These problems were made worse by the fall in global oil prices, which affected government spending and construction activity across the region.
In addition, the Binladin Group was temporarily banned from winning new government contracts after a deadly crane accident at the Grand Mosque in Mecca in 2015. The accident killed 107 people and led to strict safety reviews across the construction sector.
Despite these challenges, Saudi Arabia’s construction industry is expected to grow steadily in the coming years. The sector is forecast to grow by about 4% in 2025, supported by strong investment in housing, energy projects, and transport infrastructure. Preparations for the FIFA World Cup 2034, which will be held in Riyadh, are also boosting construction activity.
Between 2026 and 2029, the construction industry is expected to grow at an average rate of 5.4% per year. This growth will be driven by government plans to expand tourism and continue building industrial zones, housing developments, sports facilities, and transport systems.
Under Saudi Arabia’s Vision 2030 strategy, the government aims to increase tourism’s contribution to the economy. Tourism currently accounts for about 3% of gross domestic product (GDP), and the target is to raise this figure to 10% by 2030.
The government also wants to increase homeownership. It plans to raise the share of households that own their homes from 65.4% in 2024 to 70% by 2030. At the same time, Saudi Arabia plans to expand the number of industrial businesses from 8,800 in 2019 to 36,000 by 2035.
To support these goals, the government launched a three-party agreement in August. The project aims to deliver more than 40,000 new housing units across 24 residential developments throughout the country.
Published: 2nd January 2026
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