DUBAI: Binladin International Holding Group, Saudi Arabia’s biggest construction company, will hold a virtual meeting with lenders on Wednesday to discuss a recapitalization proposal approved by its board, the company said.
Binladin has been in talks since last year to refinance billions of dollars in debt, appointing Houlihan Lokey as financial adviser, sources have said.
The company’s board proposed that creditors maintain existing security packages and lenders be given several paths to increase their recovery of loans, Binladin told Reuters.
The proposal would align “stakeholder incentives to support the company,” it said in its statement, adding Binladin was well-positioned to capitalize on opportunities in Saudi Arabia.
“There will be no contracting business without the continued support of the lenders and the transaction has been designed intelligently to capture stakeholders support and position the business for an immense opportunity ahead,” Arun Reddy, managing director of Houlihan Lokey, said in the statement.
The company did not give details about how much debt was being restructured or what the new structures would be, but it said the proposal would give creditors “several options to enhance their recoveries” by taking part in new Binladin projects.
It said the plan would give the company a platform to grow, raise cash, fund new projects and launch a turnaround.
Further details about the refinancing will be announced on April 5, Binladin said.
Saudi construction firm Binladin to propose restructuring terms to lenders
https://arab.news/4ban9
Saudi construction firm Binladin to propose restructuring terms to lenders
- The company’s board proposed that creditors maintain existing security packages and lenders be given several paths to increase their recovery of loans
NMDC Energy opens advanced fabrication yard in Ras Al-Khair
JEDDAH: A new fabrication yard with an annual capacity of 40,000 tonnes has opened in Saudi Arabia’s Ras Al-Khair Special Economic Zone, marking a significant development for the Kingdom’s energy sector.
The facility, built by NMDC Energy — a UAE-based provider of engineering, procurement, and construction services — is equipped with advanced automation and digital technologies, according to a press release.
Valued at 200 million dirhams ($54.4 million), the new yard marks an important step in strengthening NMDC Energy’s regional presence and supporting Saudi Arabia’s energy infrastructure, it added.
The project aligns with the country’s Vision 2030 goals, enhancing its capacity to produce energy solutions while driving industrial growth.
“The inauguration of the Ras Al-Khair yard represents a bold and exciting new chapter for energy cooperation for both the UAE and Saudi Arabia, which will bring vast tangible benefits to both nations,” said Mohamed Hamad Al-Mehairi, chairman of NMDC Energy.
He added: “We foresee vast opportunities to collaborate and to pursue projects in areas that will maximize the value of the resources in both our nations as well as ensure that the UAE and KSA remain leaders in the regional energy transition.”
Ras Al-Khair, located in Eastern Province, is a key industrial region that contributes 60 percent of Saudi Arabia’s gross domestic product. The new yard is expected to further drive growth in the region, fostering investment, trade, and job creation in the energy sector.
The facility was officially inaugurated at the iktva Forum and Exhibition 2025, with Prince Saud bin Nayef bin Abdulaziz, governor of Eastern Province, in attendance.
Spanning 400,000 sq. meters, the new yard will focus on offshore facilities fabrication and onshore modularization, playing a key role in Saudi Arabia’s growing maritime and offshore cluster.
The company has reinvested SR5 billion ($1.33 billion) in the Saudi economy over the past five years, supporting the Kingdom’s economic priorities and diversifying its industrial base.
“At NMDC Energy, we understand that the essence of Saudi Vision 2030 is that it seeks a strong, thriving and stable Saudi Arabia. That’s why we’re looking forward to bringing 51 years of experience to create new opportunities for prosperity for both KSA and the UAE, as well as supporting new and existing clients across the wider region,” said Ahmed Al-Dhaheri, CEO of NMDC Energy.
He added: “Through our projects and collaborations in Ras Al Khair, we can build upon Saudi’s national priorities by helping to diversify the national economy, creating skilled jobs and harnessing the full potential of the skilled labor force.”
Mada cards propel Saudi e-commerce to $4.65bn, up 29%
RIYADH: Saudi Arabia’s e-commerce sales using Mada cards reached SR17.44 billion ($4.65 billion) in November 2024, a year-on-year growth of 29.4 percent, according to recent data from the Saudi Central Bank.
This figure includes payments for online shopping, in-app purchases, and e-wallet transactions, but excludes payments made through credit cards such as Visa and MasterCard.
The rise in e-commerce activity aligns with Saudi Arabia’s goal to make digital commerce 80 percent of the retail sector by 2030, with 70 percent of transactions conducted online by the same year.
Mada, the Kingdom’s national payment card system, supports both debit and prepaid services within its network. The cards utilize near-field communication technology for contactless payments, enabling secure transactions at both physical retailers and online. Mada cards play a crucial role in Saudi Arabia’s transition to a cashless economy.
In addition to the surge in sales, the number of e-commerce transactions also saw a significant increase, rising by 26.49 percent year on year to nearly 99 million transactions in November alone.
The spike in e-commerce activity in Saudi Arabia can be attributed to a combination of demographic and economic factors. With 60 percent of the population under the age of 30, the Kingdom is witnessing a growing trend toward digital consumption, largely driven by a tech-savvy youth demographic eager to embrace online shopping.
Furthermore, the expanding middle class and the rising influx of expatriates are contributing to greater financial capacity, while the growth of dual-income households further bolsters spending power.
This evolving economic landscape, paired with shifting consumer expectations for personalized and seamless digital experiences, is driving businesses to innovate and enhance their online offerings.
Ongoing infrastructure development—including the construction of new cities and modern shopping centers—adds to the momentum. As these trends continue, Saudi Arabia’s e-commerce sector is poised for substantial growth, reshaping the Kingdom’s retail environment in the coming years.
According to the latest data from the Ministry of Commerce, the Kingdom’s e-commerce sector saw a total of 40,953 businesses registered by the fourth quarter of 2024, reflecting a 10 percent year-on-year increase. Riyadh led in business registrations with 16,834, followed by Makkah and the Eastern Province. This uptick is a testament to Saudi Arabia’s push toward a digitally-driven, diversified economy, with e-commerce playing a central role in the transformation.
In parallel, the fintech sector also experienced notable growth, with the Ministry of Commerce reporting a 12 percent increase from the previous year. A total of 3,152 new fintech business registrations were recorded in the fourth quarter of 2024, highlighting the sector’s expanding role in supporting secure and seamless online transactions.
The growth of e-commerce and fintech is part of a broader trend of innovation across various sectors in Saudi Arabia. Recent reports highlight significant advances in cloud computing services, solar panel manufacturing, and real estate development—all in alignment with the goals of Vision 2030, which seeks to diversify the economy and promote sustainability.
With its rapidly expanding digital economy, Saudi Arabia is well-positioned to lead in the future of global e-commerce, as the country continues to embrace technological innovation and sustainability.
Saudi Arabia champions global collaboration and innovation at Future Minerals Forum
RIYAHD: Saudi Arabia has reaffirmed its commitment to addressing global challenges and fostering transformative change during a ministerial roundtable at the Future Minerals Forum.
Hosted in Riyadh from Jan. 14 to 16, the event is set to welcome government representatives from up to 90 countries, including 16 G20 nations, alongside industry leaders, NGOs, and international organizations in what is now its fourth edition.
This year’s gathering highlighted the need for significant investments of $6 trillion over the next decade to meet rising demand in the mining sector amidst challenges such as commodity market volatility and workforce gaps.
Opening the roundtable, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized the forum’s evolution as a collaborative platform for crafting actionable solutions to pressing global challenges.
“Today, we embark on this year’s future reform, a moment to reflect on our shared achievements and set the stage for a future of meaningful impact. The evolution of this gathering is testament to the growing recognition of its importance and impact,” Alkhorayef said.
The minister also highlighted the diversity and depth of representation at this year’s event, which included government representatives and participants from the private sector, international organizations, and NGOs.
The roundtable addressed key challenges in the sector, including developing a strategic framework to harness the mineral wealth of Africa, West, and Central Asia for economic growth.
It also focused on promoting sustainability by setting responsible supply priorities aligned with local conditions and enhancing transparency through supply chain certification.
Additionally, the creation of Regional Centers of Excellence was highlighted to boost investments, develop skilled talent, and accelerate technological innovation.
Alkhorayef acknowledged the volatility in commodity markets and stressed the importance of stakeholder engagement and addressing the talent gap caused by an aging workforce.
Aligned with its Vision 2030 goals, Saudi Arabia is positioning the mining sector as a catalyst for sustainable economic growth.
The Kingdom’s mineral wealth is estimated at $2.5 trillion, with untapped deposits of phosphate, gold, zinc, and copper,
The sector’s contribution to GDP is expected to increase to between $70 billion and $80 billion by 2030 from $17 billion currently, creating over 200,000 jobs.
Egypt economy set for 4% growth despite regional tensions, says minister
RIYADH: Egypt’s economy is on track to grow 4 percent in the current fiscal year, driven by ongoing structural reforms, according to the minister of planning and economic development.
In a meeting with the National Press Authority, Rania Al-Mashat confirmed the country was still on course to hit that figure — originally flagged in April — despite output from the Suez Canal being affected by regional tensions.
The minister also used the meeting to outline Egypt’s plans to enhance its investment climate, with the government seeking $4.2 billion in macroeconomic support from global partners.
This comes against a backdrop of a surge in foreign direct investment inflows, which reached a record $46.1 billion in the 2023/2024 fiscal year, compared to just $10 billion the previous year, according to data released by the Central Bank of Egypt.
Al-Mashat also emphasized the government’s commitment to prudent investment management, highlighting that the public investment budget for the current year is capped at 1 trillion Egyptian pounds ($19.78 billion), with a focus on completing projects that are at least 70 percent finished, according to a release.
Between 2020 and 2024, the private sector secured $14.5 billion in concessional development financing from global partners. For the first time, soft international financing for the private sector has surpassed government financing in 2024, Al-Mashat noted.
The minister also disclosed that negotiations are underway with the EU and other international partners for a second phase of macroeconomic support, totaling €4 billion ($4.10 billion) in budget aid, alongside €1.8 billion in investment guarantees.
She highlighted Egypt’s renewable energy progress, with the National Platform for the “NWFE” program securing $3.9 billion in financing for renewable projects. The program is set to add 4,200 megawatts of clean energy capacity and phase out 1,200 MW of thermal power generation.
Al-Mashat also outlined the ministry’s long-term vision following the merger of planning, economic development, and international cooperation portfolios. The aim is to drive sustainable growth and improve the quality and quantity of economic development in line with Egypt’s Vision 2030 and other strategic frameworks.
The government is currently drafting the 2025/2026 Socio-Economic Development Plan, aligned with the mid-term budget framework. She pointed out that efforts to restructure the National Investment Bank and manage debt with key institutions, such as the National Bank of Egypt and Egypt Post, are also ongoing.
Despite stringent controls on investment spending, human development remains a priority. Al-Mashat noted that nearly 50 percent of the 2024/2025 investment plan — amounting to nearly 2 trillion pounds — will go toward public investments, with a significant portion dedicated to human development and water and sanitation projects.
The minister concluded the meeting by pointing out the role of 54 joint committees that the ministry oversees, which are designed to promote economic cooperation and opportunities with other nations.
Global sukuk issuance set to reach $200bn in 2025: S&P Global
RIYADH: Global sukuk issuance is projected to hit between $190 billion and $200 billion in 2025, driven by increased activity in key markets such as Saudi Arabia and Indonesia, according to a recent analysis from S&P Global.
In its latest report, S&P Global noted that global sukuk issuances totaled $193.4 billion in 2024, a slight decrease from $197.8 billion in 2023. Despite this marginal decline, the market saw a notable 29 percent year-on-year increase in foreign-currency denominated sukuk, which surged to $72.7 billion in 2024.
The report highlighted that Malaysia and Gulf Cooperation Council countries, particularly Saudi Arabia, were the primary drivers of foreign-currency denominated sukuk issuances.
Sukuk, a Shariah-compliant bond, offers investors partial ownership in an issuer’s assets and is structured to adhere to Islamic finance principles.
“We expect foreign currency-denominated issuance to remain strong in 2025,” S&P Global said in its analysis.
The agency also anticipates that monetary easing will persist, albeit at a slower pace than initially expected. This, coupled with substantial financing needs in core Islamic finance nations, particularly due to ongoing economic diversification initiatives, is expected to prompt issuers to capitalize on favorable market conditions.
The S&P report comes at a time of significant activity in Saudi Arabia’s debt and sukuk markets. A December report from Kamco Invest indicated that Saudi Arabia would face the largest share of bond maturities in the GCC region from 2025 to 2029, reaching an estimated $168 billion.
Despite global geopolitical tensions, S&P Global forecasts that these will have little impact on sukuk issuance in 2025.
Mohamed Damak, head of Islamic Finance at S&P Global Ratings, stated: “Our forecasts assume no major shift in global liquidity compared to our base-case expectations and no significant escalation of geopolitical risks in the GCC that could disrupt the economic performance of top sukuk issuers.”
S&P Global also noted that the implementation of the Accounting and Auditing Organization for Islamic Financial Institutions’ Shariah Standard 62 is not expected to affect sukuk volumes until 2026.
This guideline, which was published as an exposure draft in late 2023, aims to standardize various aspects of the sukuk market, including asset backing, ownership transfer, and trading procedures.
“We believe the impact of AAOIFI’s Shariah Standard 62 will only materialize in 2026, at the earliest,” S&P Global said.
“There is uncertainty regarding whether market feedback will lead to any significant revisions to the original proposals, which we view as potentially disruptive for the industry.”
Fitch Ratings echoed similar concerns about the potential impact of these guidelines, suggesting that the final adoption could lead to significant changes in the structure of the sukuk market and may even increase fragmentation.
As sukuk markets continue to evolve, experts are closely monitoring the interplay between regulatory changes, geopolitical factors, and market dynamics that could shape the future of this vital segment of global finance.
