The Binladin International Holding Group (BIHG), the parent company of Saudi Arabia’s largest construction conglomerate, the Saudi Binladin Group (SBG), has established a transformation programme to drive ongoing reorganisational plans aimed at maximising efficiencies across the group.

The Government of Saudi Arabia, through the Ministry of Finance, has taken a significant stake (36.22 percent) in the holding company, and with the appointment of recapitalisation advisors Houlihan Lokey Inc, the newly established transformation programme will reorient operating lines to improve accountability and transparency across the Group, BIHG said in a statement. 

The transformation programme will also be tasked with managing recapitalisation plans of subsidiary SBG, including new appointments to the management team, it said.

BIHG’s transformation programme is designed to absorb, rebuild, and reinvent SBG under clear objectives defined by the board. The objectives include capitalising on the real estate development opportunities driven by the SBG's extensive land bank, including prime locations in the kingdom’s Holy City of Makkah. It will also seek 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.

A new management has recently been appointed to drive the transformation exercise.

Khalid AlGwaiz, CEO, BIHG, 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 are confident that through this transformation process BIHG will positively impact the local economy through both the public and private sectors, create sustainable jobs, and contribute to the foundations of a diversified economy upon which the goals of the National Transformation Programme and Vision 2030 will rest,” he added.

BIHG was established in collaboration with Istidama Holding Company, a subsidiary of Saudi Arabia’s Ministry of Finance, which holds a 36.22% stake in the firm. 

(Writing by Seban Scaria; editing by Daniel Luiz)

(seban.scaria@refinitiv.com)

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