The Saudi government is expected to take a 35 per cent stake in construction giant Saudi Binladin Group (SBG) as part of a financial settlement with state authorities.
It represents the total stakes of chairman Bakr Binladin and his brothers Saleh and Saad, all of whom were detained in an anti-graft crackdown in November alongside scores of other businessmen, princes and officials, according to some of the sources. A formal transfer of control has not yet taken place, causing prolonged uncertainty about the fate of the company two months after it announced that some shareholders might transfer part of their holdings to the state against outstanding dues.
Family-owned SBG, which had more than 100,000 employees at its height, is the biggest builder in Saudi Arabia and is important in Riyadh’s plans for large real estate, industrial and tourism projects to help diversify the Kingdom’s economy beyond oil.
Many have argued that Saudi’s campaign of arrests and current crackdown on its wealthiest nations is an attempt by the state, which has been badly affected by the sharp drop in petrol prices, to raise much needed funds.
