Saudi Binladin Group

Saudi Binladin Group
مجموعة بن لادن السعودية
Private conglomerate, holding company, subsidiary
Industry Construction
Founded 1931 (1931)
Founder Sheikh Mohammed bin Laden
Headquarters Jeddah, Saudi Arabia
Key people
 Bakr bin Laden, Chairman
Website www.sbg.com.sa

Saudi Binladin Group (SBG; Arabic: مجموعة بن لادن السعودية‎ Maǧmūʿat Bin Lādin al-Saʿūdiyyah) is a multinational construction conglomerate and is headquartered in Jeddah, Saudi Arabia. Saudi Binladin Group were during 2011 signed to a US$1.23 billion contractual agreement to construct the tallest building in the world, Jeddah Tower in Jeddah, and in addition are bound to a US$3.4 billion agreement to construct the Doha Metro located at Doha.[1] The conglomerate comprises an estimated 537 companies.[2]

Overview

The SBG was founded in 1931 by Sheikh Mohammed bin Laden Sayyid, whose relationship with the country's founder, Abdel Aziz al Saud, led to important government contracts such as refurbishing the mosques at Mecca and Medina.

In 1964, Mohammed bin Laden was commissioned to work on the third Holy sanctuary of Islam, recladding the Dome of the Rock in Jerusalem.[3] After the death of Sheikh Mohammed in 1967, the group was headed by Mohammed Bahareth, brother of Mohammed's first wife and uncle of his oldest children. In 1972, Salem bin Laden, the eldest son of Mohammed bin Laden, took over as his father's successor, with the assistance of several brothers. Upon Salem's death in a plane crash in 1988, the leadership of the group passed to one of Salem's brothers, Bakr, the current chairman, along with thirteen other brothers who make up the board of the bin Laden group, the most important of these being Hassan, Yeslam and Yehia.

The Group considered an initial public offering in 2011, but declined to do so due to combination of low oil prices, a weak stock market, and bureaucratic obstacles.[2]

In April 2018, Bakr bin Laden, as well as his brothers Saleh and Saad, transferred their 36.2% stake in the Saudi Binladin Group to the Istidama Holding Company, which is owned by the Ministry of Finance.[2] The government of Saudi Arabia subsequently established a five-person committee to run the Binladen Group, which includes of Abdulrehman al-Harkan, Khaled Nahas, Khalid al-Khowaiter.[2] Reuters described the ownership transfer as a functional nationalization, with al-Harkan, the committee's chairman, reporting to Finance Minister Mohammed Al-Jadaan.[2] al-Karkan subsequently negotiated a 11 billion riyal loan from the Ministry of Finance.[2]

Current activities

The bin Laden group is represented in most Saudi cities — Riyadh, Dammam — and in a number of capital cities in the region (Beirut, Cairo, Amman, Dubai). According to a synopsis by the PBS news program Frontline:[4]

  • in Egypt the SBG is headed to goby Omar bin Laden as Chairman, Khaled bin Laden as CEO, Tarek Helmy as General Manager, and represents that country's largest foreign-owned private equity group, with over 40,000 employees.
  • in Lebanon the SBG, represented by Yehia bin Laden, has been holding negotiations with the local authorities for a $50 million share in the project to rebuild the Beirut Central District within the framework of the Solidere Project and in conjunction with the al Baraka Group and the bin Mahfouz Group.
  • in London the SBG set up a representative firm called Binexport in November 1990.

The Group is constructing Abraj Al Bait Towers in Mecca[5] and has been contracted by Kingdom Holding Company to build the Jeddah Tower.[6]

On 11 September 2015, while doing construction work in the Grand Mosque in Mecca, Saudi Arabia, one of the Group's cranes collapsed due to high winds causing 118 deaths and almost 400 injuries.[2] As a result, the Saudi king banned the firm from taking new projects while having its current projects reviewed. The Saudi government removed the ban on the Binladin Group in May 2016, allowing them to bid on new projects.[2]

Saudi Arabia projects

  1. Royal Terminal, Jeddah
  2. King Abdulaziz International Airport, New Haj Terminal, Jeddah
  3. Al Faisaliyah Center
  4. Madina-Qassim Expressway
  5. Um Alqura University, Makkah
  6. Lotus Compounds, Jeddah
  7. Alameera Noura University
  8. Abraj Al Bait Towers, Makkah
  9. Jeddah Tower, Jeddah
  10. King Abdullah Economic City
  11. Jamaraat Bridge
  12. Saudi Arabia National Guard Housing Project

International projects

  1. Blaise Diagne International Airport, Senegal
  2. Kuala Lumpur International Airport, Malaysia
  3. Sharjah International Airport Expansion & Development, UAE
  4. University of Sharjah, UAE
  5. Expansion of Velana International Airport, Maldives

Website

SBG's Internet domain name, saudi-binladin-group.com, was registered on September 11, 2000, for one year, expiring on the same day as the September 11, 2001 attacks. The domain was later acquired by a domain speculator.[7][8]

References

  1. ↑ Fattah, Zainab (2 August 2011). "Alwaleed Hires Saudi Binladin to Build World's Tallest Tower". Bloomberg Business.
  2. 1 2 3 4 5 6 7 8 Paul, Katie; Arnold, Tom; Ashad, Marwa; Kalin, Stephen (September 27, 2018). McBride, Janet; Woods, Richard, eds. "Special Report: As a Saudi prince rose, the Bin Laden business empire crumbled". Reuters.
  3. ↑ "About Us". sbg.com.sa. Saudi Binladen Group. 2010. Archived from the original on 2011-02-19. Retrieved 12 September 2015.
  4. ↑ "About the bin Laden Family". PBS. Retrieved 2 August 2011.
  5. ↑ http://buildingdb.ctbuh.org/?do=building&building_id=84
  6. ↑ "Bin Laden Group to build world's tallest tower". CNN. 2 August 2011. Retrieved 2 August 2011.
  7. ↑ Howard Altman. "Osama Family's Suspicious uses sbg.com.sa, which was registered on January 11, 2000".
  8. ↑ "sBg.com.sa - Saudi Binladen Group SBG". DomainTools.com. Retrieved 2 August 2011.

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