Dubai: Saudi Arabia's Binladin International Holding Group has launched a 'transformation programme' to try and emerge from what has been an extremely difficult period financially for the construction giant.
The Ministry of Finance now has taken a 36.22 per cent stake in the holding company, and there was also the appointment of turnaround specialist firm Houlihan Lokey Inc.. The transformation will focus on managing the recapitalisation of the construction arm - Saudi Binladin Group - as well as improve group-wide transparency.
The plan is built on three objectives: First, to carry forward the entity’s position as the Kingdom’s "national construction champion". The second aim is to capitalise on real estate development opportunities driven by the Group’s extensive land bank, including prime locations in the Holy City of Mecca.
And third, maximise value across its investment portfolio through refocusing on core businesses through alliances and joint ventures - and the disposal of non-core assets.
Khalid AlGwaiz, CEO, BIHG, said: “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."
Who is Khalid AlGwaiz?
AlGwaiz was appointed CEO of BIHG in March to oversee the subsidiary's recapitalisation. Binladin International Holding Group was established in tandem with Istidama Holding Company, a subsidiary of Saudi Arabia’s Ministry of Finance.
“Saudi Arabia is amongst the largest in the GCC with regards to the size of the infrastructure and construction industry, with more than $825 billion worth of planned and un-awarded contracts," said AlGwaiz. "The industry has seen growth in the contracts awarded from $11.2 billion in 2016 to $56.2 billion in 2019.
"BIHG is well-positioned to carry SBG’s great legacy as a national champion forward to lead this sector and capture its growth."