Saudi Arabia’s Ministry of Finance has acquired an 86% stake in Saudi Binladin Group Holding after the company’s general assembly approved a capital increase through the conversion of outstanding debt into shares.

Saudi Binladin Group’s board said the shareholders’ decision reflects confidence in the company’s future direction and strategy, describing the move as a key step toward restoring financial stability and supporting the group’s development plans.

The group, which was once one of the Kingdom’s largest construction firms, has undergone extensive restructuring in recent years as part of efforts to restore its operations and financial standing.

The general assembly of Binladin International Holding Group has approved a capital increase through the conversion of existing debt into equity, a move that results in the Saudi Ministry of Finance acquiring an 86 percent ownership stake in the company, reported Al Arabiya.

The decision marks a significant step in restructuring the group’s financial position and reflects shareholder confidence in the company’s long-term strategy and operational recovery.

Binladin Group’s board of directors said the approval underscores trust in the company’s future direction and reinforces its development and growth objectives, stated the report.

Under the new restructuring, the group’s liabilities to the Ministry of Finance are estimated at about SAR23.3 billion ($6.2 billion).  These outstanding financial obligations will be settled through the issuance of new shares, allowing the company to substantially reduce its debt burden and strengthen its balance sheet.

As a result, the Ministry of Finance will become the group’s majority shareholder, aligning the government directly with the company’s growth trajectory while supporting its financial stability.

The debt-to-equity conversion enables the company to settle its obligations and strengthen its financial position, while giving the ministry a direct role in supporting the group’s recovery and long-term growth, it stated.

The move follows earlier action by Saudi Arabia’s National Debt Management Center, which announced it had arranged a syndicated loan worth about SAR23.3 billion for the Ministry of Finance with a number of local and international banks. The financing was aimed at supporting the broader debt settlement process involving Saudi Binladin Group.

The decision builds on a previous announcement by the Ministry of Finance outlining a series of measures to stabilise the group’s financial structure, including coordinated arrangements to settle outstanding bank dues in cooperation with the company.

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