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Saudi Banks Acquire 80% of Debt Burdening Construction Firm ‘Binladin’

Saudi Banks Acquire 80% of Debt Burdening Construction Firm ‘Binladin’
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Saudi Banks Acquire 80% of Debt Burdening Construction Firm ‘Binladin’

Saudi Banks Acquire 80% of Debt Burdening Construction Firm ‘Binladin’

The Binladin International Holding Group, one of the Middle East’s biggest construction companies, is witnessing remarkable progress in its debt restructuring plans as reports revealed that Saudi banks acquired nearly 80% of the company’s debt.

Binladin’s CEO Khalid al-Gwaiz, in an interview with Al Arabiya TV channel, revealed that the company’s debt was not far from 33 billion riyals ($8.8 billion) and added that the ongoing restructuring process with lenders is the biggest in the Middle East.

Last week, the construction company held a virtual meeting with lenders to discuss a restructuring proposal approved by the company’s board that it said would align “stakeholder incentives to support the company.”

Gwaiz said lenders have indicated preliminary approval for the plan, according to the Al Arabiya report. He also said a formal initial agreement is expected in June, before details are finalized and documented by September or the fourth quarter.

Binladin, according to Gwaiz, has identified opportunities in the construction market in the Kingdom amounting to one trillion riyals by 2025.

These opportunities are mainly linked to government projects.

Binladin’s share of those mega projects will contribute to payback creditors, Gwaiz confirmed.

“Restructuring is vital for developing Binladin’s capacity for taking on mega projects,” Saudi economist Abdullah al-Malghouth told Asharq Al-Awsat.

He added that Binladin’s strategy goes to show that Saudi companies have begun to move in the right direction in terms of drafting organized, transparent and reliable strategies.

The kingdom’s laws aim to resolve any obstacle that could hinder the work of companies, Saudi legal consultant Faisal al-Khriji told Asharq Al-Awsat, adding the restructuring of debt is supported by Saudi regulations.

Last month, Binladin said it will offer creditors “several options to enhance their recoveries” by taking part in new company projects.

It said the plan would give the company a platform to grow, raise cash, fund new projects and launch a turnaround.

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Saudi Arabia, IMO Launch the NextWave Seafarers Project

The Kingdom of Saudi Arabia has launched the NextWave Seafarers pilot project - SPA
The Kingdom of Saudi Arabia has launched the NextWave Seafarers pilot project - SPA
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Saudi Arabia, IMO Launch the NextWave Seafarers Project

The Kingdom of Saudi Arabia has launched the NextWave Seafarers pilot project - SPA
The Kingdom of Saudi Arabia has launched the NextWave Seafarers pilot project - SPA

The Kingdom of Saudi Arabia, through the Transport General Authority (TGA) and Bahri, has launched the NextWave Seafarers pilot project at the IMO headquarters in London.

This came in collaboration with the International Maritime Organization (IMO).
The project aims to train maritime academy cadets from Small Island Developing States (SIDS) and Least Developed Countries (LDCs) while supporting advanced research and fostering international cooperation in this critical sector.
The agreement was signed on the sidelines of the IMO Sub-Committee on Human Element, Training, and Watchkeeping (HTW) meeting by Saudi Arabia’s Permanent Representative to the IMO Eng. Kamal Al-Junaidi and Director of the IMO’s Technical Cooperation and Implementation Division Dr. Jose Matheickal, SPA reported.
The project will be implemented between 2025 and 2026, with a total budget of approximately $700,000 (SAR2,625,000), focusing on capacity building. It aims to address the underrepresentation of seafarers from these regions in the global shipping workforce by providing hands-on training opportunities aboard Saudi vessels for maritime academy cadets from SIDS and LDCs. In its first phase, the project will provide 20 cadets from these countries with onboard training aboard Saudi vessels between 2025 and 2026, equipping them with practical experience and essential skills to kick-start their maritime careers. The initiative also seeks to strengthen collaboration between IMO member states and shipping companies, encouraging further international participation in similar programs.
Additionally, the project will conduct an international study to analyze the barriers faced by maritime students from SIDS and LDCs in entering the sector. These include limited access to sea-time training and challenges in meeting the required service time for certification.
The NextWave Seafarers project underscores Saudi Arabia’s commitment to supporting the maritime workforce, expanding training opportunities, and promoting capacity-building initiatives. It also aligns with the Kingdom’s efforts to enhance safety regulations, strengthen international shipping cooperation, and develop sustainable career pathways for maritime academy cadets.
Saudi Arabia envisions this project as a catalyst for positive change in the maritime sector by identifying and addressing challenges faced by seafarers from LDCs and SIDS. By investing in maritime training programs and fostering international partnerships, the Kingdom reaffirms its commitment to building a resilient and sustainable future for the shipping industry, supporting seafarers, improving global maritime standards, and ensuring the continued growth of this vital sector.