Saudi wealth fund PIF intends to acquire a stake in construction giant Binladin Group
Ministry of Finance holds a 36% stake in Saudi Binladin Group

Riyadh: Saudi Arabia’s sovereign wealth fund is in talks to acquire a stake in the Kingdom’s largest construction conglomerate, as it relies on local firms to undertake crucial mega-projects and infrastructure necessary for hosting flagship events like the World Expo.
The Public Investment Fund (PIF), a $700 billion wealth fund, is collaborating with Morgan Stanley on a potential investment in the Saudi Binladin Group, sources familiar with the matter revealed. The PIF is considering acquiring part or all of the 36 per cent stake currently owned by the Ministry of Finance.
Spokespersons for Morgan Stanley and the PIF have refrained from commenting on the matter, while representatives for Binladin Group remain unreachable for comment.
This prospective deal with the PIF emerges as Binladin Group endeavors to recover from years of losses and mitigate a substantial debt burden amounting to billions of dollars. Houlihan Lokey Inc. is spearheading the restructuring efforts of the firm, as the Kingdom aspires to reinstate the company as a national champion capable of executing projects pivotal to Crown Prince Mohamed Bin Salman’s ambitious economic reform blueprints.
The PIF assumes an increasingly significant role in Saudi Arabia’s economic diversification away from oil, overseeing several transformative projects including the $500 billion NEOM futuristic city and a luxury tourism development along the Red Sea. In the previous year, the PIF allocated $1.3 billion to acquire stakes in four local construction companies, bolstering the kingdom’s domestic construction industry.
Saudi Binladin Group’s legacy is deeply intertwined with the Kingdom’s history since its inception in 1932. The company has played a pivotal role in the country’s modernization efforts, constructing highways, airports, economic free zones, and contributing significantly to projects in the Islamic holy cities of Mecca and Medina.
Binladin Group’s potential involvement could prove instrumental to the Kingdom’s aspirations of hosting prestigious events such as the World Expo exhibition in 2030 and the 2034 FIFA World Cup. These endeavors necessitate extensive infrastructure investments and the collaboration of experienced builders.