Monday 24 June 2019

Saudi Binladin group names new CEO in big shake-up

RIYADH, March 20, 2019

In a major move, the Saudi government has clipped the wings of the Bin Laden family in the eponymous construction group, naming Saudi businessman Khalid Nahas as the chairman of the newly-established Binladin Group Global Holding Company.

The new development comes following a massive restructuring, in a break from the family's exclusive control over its earlier company, Saudi Binladin Group (SBG).

Binladin Group Global Holding Company is 36.22 per cent owned by Istidama, a finance ministry subsidiary, while the remaining 63.78 per cent is with Binladin Company for Development and Commercial Investment.

In a move that is aimed at curbing the influence of the Bin Laden family only two brothers, Saad and Abdullah, are represented on the new nine-person board, reported Reuters, citing the document from the kingdom's commerce ministry.

Other board members of the new entity include senior Saudi businessmen with experience at some of the kingdom's most successful companies such as state-owned oil giant Saudi Aramco, petrochemical producer Saudi Basic Industries Corp, and property developer Jabal Omar Development Company.

SBG, which for decades built Saudi Arabia's roads, mosques and palaces, is crucial to ambitious new plans for major tourism and infrastructure projects. It is not connected to Osama, one of the younger brothers in the family, it added.

Following the shake-up, SBG's chief financial officer Klaus Froelich has resigned, stated the Reuters report citing sources.

The former Morgan Stanley banker was hired in 2016 to help the firm overcome a crisis sparked by the collapse of a construction crane in Makkah's Grand Mosque, it added.


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