EXCLUSIVE- Saudi gov’t now controls over 92% of Binladen Group

The government’s grip on Saudi Arabia’s largest contractor is larger than December’s headline figure let on. Combined government control of Binladin International Holding Group (BIHG) sits above 92% — higher than the 86% previously reported — with the founding Bin Laden family holding less than 8%, a company spokesperson tells EnterpriseAM. The Finance Ministry has a direct stake of 86.38%, while its Istidama Holding keeps a separate, diluted stake of around 6%.

How the swap worked: Shareholders approved a capital increase converting the ministry’s debt into new equity — issued directly to the ministry, diluting Istidama’s legacy holding rather than topping it up. The swap’s value wasn’t disclosed. Istidama had held 36.22% since the 2019 transfer that created BIHG to house the family’s assets after the 2017 anti-corruption purge.

A decade-long unraveling: The family’s loss of control caps a slow collapse. The liquidity crisis began with the 2015 crane collapse at the Grand Mosque in Makkah, which killed 100+ people and was followed by a months-long ban on new state contracts as an oil-price crash pushed Riyadh to delay contractor payments. Debts swelled to an estimated USD 20-30 bn, and by 2020 the group had hired Houlihan Lokey for an SAR 56.4 bn restructuring. The state stepped in in October 2024 with a SAR 23.3 bn syndicated loan and a Finance Ministry plan to clear bank dues.

Why it matters: The Kingdom is counting on this near-total sovereign ownership of the company for planned national construction projects. Saudi Arabia is racing to deliver infrastructure for Expo 2030 and the 2034 World Cup amid a construction-capacity crunch, and a Binladin failure would have put tens of thousands of jobs and flagship projects at risk. The firm remains the main contractor on Jeddah Tower — set to be world's tallest building, work on which resumed in January 2025 under a SAR 7.2 bn contract — and carries a growing World Cup workload.

Three things to watch: Whether the government lists BIHG on Tadawul, setting a formal valuation and a credible exit for the family’s residual stake — a step Finance Minister Mohammed Al Jadaan has repeatedly left open; whether the firm expands internationally on the state’s balance sheet, capacity it never had as a debt-laden private company; and whether the Binladin name survives or a rebrand is on the way — erasing its history as one of the most recognizable names in construction and making way for something with less historical and political baggage.