PIF explores buying stake in Saudi Binladin Group

Eliot Blondet/Abaca Press via Reuters

Saudi Arabia’s Public Investment Fund (PIF) is planning to acquire a stake in Saudi Binladin Group, one of the biggest construction groups in the kingdom, a media report said. 

The sovereign wealth fund is working with US investment bank Morgan Stanley on a potential deal, Bloomberg reported, citing people aware of the matter. 

The $700 billion wealth fund intends to acquire part or all of the 36 percent stake owned by the Saudi finance ministry.

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The PIF last year invested $1.3 billion to purchase stakes in four local construction companies to bolster the kingdom’s local construction sector.

The wealth fund is backing the $500 billion futuristic Neom and luxury tourism developments on the Red Sea.  

Binladin, established in 1932, remains central to tourism and infrastructure projects as part of the Vision 2030 project to diversify the economy away from oil revenues. 

In 2022, the government appointed the the UK-based financial advisory firm Rothschild to supervise the group’s restructuring and reduce debt estimated to be in the range of $20-$30 billion.

The contracting company remains a private conglomerate.