Exclusive: Saudi Arabia curbs family influence in Binladin group shake-up

By Stephen Kalin RIYADH (Reuters) - The influence of Saudi Arabia's Bin Laden family on its eponymous construction business has been curtailed in a restructuring that follows an anti-corruption crackdown by Riyadh, a document seen by Reuters shows. Saudi businessman Khalid Nahas has been named chairman of the newly-established Binladin Group Global Holding Company, which is 36.22 percent owned by Istidama, a finance ministry subsidiary, and 63.78 percent by Binladin Company for Development and Commercial Investment. Only two Bin Laden brothers, Saad and Abdullah, are represented on the new nine-person board, the document from the kingdom's commerce ministry reveals, in a break from the family's exclusive control over its earlier company, Saudi Binladin Group (SBG)

Reuters March 19, 2019 00:05:43 IST
Exclusive: Saudi Arabia curbs family influence in Binladin group shake-up

Exclusive Saudi Arabia curbs family influence in Binladin group shakeup

By Stephen Kalin

RIYADH (Reuters) - The influence of Saudi Arabia's Bin Laden family on its eponymous construction business has been curtailed in a restructuring that follows an anti-corruption crackdown by Riyadh, a document seen by Reuters shows.

Saudi businessman Khalid Nahas has been named chairman of the newly-established Binladin Group Global Holding Company, which is 36.22 percent owned by Istidama, a finance ministry subsidiary, and 63.78 percent by Binladin Company for Development and Commercial Investment.

Only two Bin Laden brothers, Saad and Abdullah, are represented on the new nine-person board, the document from the kingdom's commerce ministry reveals, in a break from the family's exclusive control over its earlier company, Saudi Binladin Group (SBG).

The stake owned by Istidama reflects the ownership relinquished by brothers Bakr, Saleh and Saad last year after they were arrested in the corruption purge led by Crown Prince Mohammed bin Salman.

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.

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

Finance Minister Mohammed al-Jadaan told Reuters in December that SBG would soon have a "normal board" with family members and representatives of government ownership after a five-member committee restructured its governance.

That committee was led by Abdulrehman al-Harkan, a former chief executive of Riyadh-based developer Dar Al Arkan, who is not on the new company's board.

Jadaan left open the possibility that the Binladin company could eventually be listed on the stock market.

Reuters reported in September that SBG had ended up on a collision course with the government after chairman Bakr Binladin and his shareholder brothers resisted earlier pressure to list.

In January, following nearly 15 months in detention, Bakr became the last of his brothers to be released after an anti-corruption campaign that netted princes and ministers, shattered investor confidence and was decried by critics as a shakedown and power play.

(Additional reporting by Marwa Rashad; Editing by Alexander Smith)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities
World

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities

Reports suggest that they captured President Alpha Conde and dissolved the government, bust the ground situation remains unclear

Cryptocurrency prices tumble and exchange trading falters as snags crop up
News & Analysis

Cryptocurrency prices tumble and exchange trading falters as snags crop up

NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.

Ford poaches Apple's car project chief Doug Field
News & Analysis

Ford poaches Apple's car project chief Doug Field

By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.