The Binladin International Holding Group (BIHG), the parent company of Saudi Arabia’s largest construction conglomerate, the Saudi Binladin Group (SBG), has announced the establishment of a transformation programme that will drive ongoing reorganisational plans aimed at realigning and maximising efficiencies across the group.
BIHG is 36.22% owned by Istidama, a subdivision of the Saudi Arabian Ministry of Finance. The remaining 63.78% is owned by the Binladin Company for Development and Commercial Investment.
Rooted in the Binladin family’s 90-year legacy within the construction and contracting industry, BIHG was formed to navigate the family’s robust portfolio through a new era in Saudi Arabia’s history.
The Saudi government, through the Ministry of Finance, has taken a significant stake in the holding company, and with the appointment of recapitalisation advisors Houlihan Lokey, the newly established transformation programme will reorient operating lines to improve accountability and transparency across the group.
The transformation programme will also be tasked with managing recapitalisation plans of subsidiary SBG, including new appointments to the management team.
BIHG’s transformation programme is designed to absorb, rebuild, and reinvent SBG under three clear objectives defined by the Board: First, to carry forward the entity’s position as the Kingdom’s national, and the wider GCC’s regional, construction champion, while underscoring its vital role in the country’s economy regarding the realisation of Saudi Vision 2030, said the company in a statement.
Second, to capitalise on the real estate development opportunities driven by the Group’s extensive land bank, including prime locations in the Kingdom’s Holy City of Makkah.
And third, to maximise the value of its investment portfolio through the optimisation of core businesses – including the bolstering of management teams, exploring strategic partnerships and joint ventures, and the disposal of non-core assets.
New management has recently been appointed to drive the transformation exercise: Ahmed Al Sanie as Group Managing Director; Khalid AlGwaiz as CEO, BIHG; Abdulrahman Bajunaid, as CEO of Real Estate; and Samer Khawashki as CEO of Investments.
AlGwaiz said: “Through the establishment of the transformation programme, we have identified and put in place the foundations necessary to carry out comprehensive due diligence to ensure the success of the ongoing recapitalisation of SBG."
“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, he added.
AGz pointed out that Saudi Arabia was 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.
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.-TradeArabia News Service