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The Ministry of Finance, Saudi Arabia has raised its stake in Binladin International Holding Group to 86.38%, according to state broadcaster Al-Arabiya.
Al-Arabiya called the transaction a debt-conversion arrangement but did not reveal its financial terms.
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Reuters cited earlier reports saying the state previously owned 36% of the construction firm.
The change comes after a move last year in October in which the National Debt Management Center arranged a syndicated loan of about SR23.3bn ($6.21bn), allowing the finance ministry to support Binladin.
That assistance was presented as part of the construction sector’s importance to Saudi Arabia’s push to grow tourism and cut dependence on oil revenues.
As per the Al-Arabiya report cited by Arab News, the Binladin Group’s board believes the approval reflects confidence in the company’s future path and strengthens its plans for development and growth.
Under the approved structure, unpaid financial obligations will be addressed through the issue of new shares, which is expected to cut the company’s debt load and improve its balance sheet.
This would leave the finance ministry as the majority shareholder after a series of earlier steps aimed at stabilising the group’s finances, including measures to settle outstanding cash obligations to banks and revise the company’s commitments.
The decision is viewed as an extension of the government’s wider backing for the construction and infrastructure industry, a central component of Saudi Arabia’s Vision 2030 economic transformation agenda.
The reorganisation is expected to support the on-time delivery of strategic projects, protect jobs, and improve the sector’s appeal to investors.
Binladin has faced financial pressure linked to halted projects and late payments after a decline in global oil prices.
The group was also temporarily barred from new government contracts following a 2015 crane accident at Mecca’s Grand Mosque that killed 107 people.
Reuters said the finance ministry and Binladin did not immediately respond to requests for comment.
