PIF to acquire stake in Saudi construction giant Binladin Group

by: Arab News Saudi Arabia:

Saudi Arabia’s Public Investment Fund is poised to acquire a 36 percent stake in the Kingdom’s prominent construction giant Binladin Group, as reported by Bloomberg.

Although PIF has not officially commented on the matter, Bloomberg indicated that the fund is collaborating with Morgan Stanley on a potential deal to invest in Saudi Binladin Group, citing sources familiar with the situation.

According to Bloomberg’s sources, PIF is contemplating acquiring part or all of the 36 percent stake currently owned by the Ministry of Finance. The sovereign wealth fund is reportedly seeking local firms to assist in constructing infrastructure for events like the World Expo. Both Morgan Stanley and PIF representatives declined to provide comments.

Efforts to reach representatives of Binladin Group for comment were unsuccessful. The Kingdom’s fund is playing a key role in Saudi Arabia’s economic diversification away from oil, overseeing major projects such as NEOM. Last year, PIF invested $1.3 billion in acquiring stakes in four local construction companies to bolster the domestic construction sector.

Saudi Binladin Group is active in construction, power, and industrial sectors. In construction, SBG has completed over 15 projects in Saudi Arabia, including the expansion of the Holy Mosque in Makkah and Al-Faisaliah Tower in Riyadh. Internationally, it has worked on projects such as Kuala Lumpur Airport and Sharm El-Sheikh Airport in Egypt.

In power generation, SBG has been involved in projects like Al-Shoaiba Power Plant and Power Plant No.9 (PP9), which has a capacity of 5,980 megawatts. Binladin Group’s industrial projects include the BCS Ready Mix Factory and the Bahra Industrial Complex.


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