Published On: Fri, Jan 12th, 2018

Saudi Government in a Bid to take Hold of Binladin Group


Hold of Binladin Group

Saudi Arabia is trying to take Hold of Binladin Group, a construction giant in the country.

The government wants to take over some of the company’s assets and for this purpose; it has set up a team of five, including three officials and two from the family who has the hold of the group.

The chief of Binladin Group, Bakr Bin Laden is detained by the Saudi government along with some of his family members, in the allegations pertaining to corruption. There are many other accused royal family members who are held by the Saudi government while investigating allegations of corruption.

The Hold of Binladin Group will generate revenues for the government as it has the large setup, with over 100,000 employees. Saudi Government wants to evolve into diverse business culture beside oil, and BinLadin is a good opportunity.

Due to Crane incident in 2015, that killed many people, the group is under dire criticism and also, many government projects are being denied to the company. Also, over the years decline in construction business has cost the group heavily.

The detained people are negotiating terms with the government and it is being said that, Saudi Arabia will squeeze around $100 billion from the detainees as it is being claimed that it belongs to the government.

The group still holds the right to all assets, and it is in a process of settling down terms with the government. The Group either will surrender its significant assets or maybe it will consider omitting all outstanding liabilities of Saudi Government in Groups Account.

The government debts sum up to be around $30 million, which one year ago government declared unable to pay due to low prices prevailing in the market that had cut finances significantly.

Among detainees also include, Prince Alwaleed Bin Talal, who owns Kingdom Holding, the global investment firm. But the Construction company case and Saudi governments interests in Binladin group is the different picture, due to the benefits Government can reap from its control.

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