Saudi Arabia’s Public Investment Fund (PIF) is reportedly in discussions to acquire a 36 percent stake in the Kingdom’s renowned construction conglomerate, Binladin Group. While PIF has not officially commented on the matter, sources suggest that the sovereign wealth fund is working with Morgan Stanley on a potential deal, considering the acquisition of part or all of the stake currently owned by the Ministry of Finance. The move aligns with PIF’s focus on strengthening the domestic construction industry to support major infrastructure projects, including those related to global events such as the World Expo. The fund’s investment strategy has shown recent involvement in the sector, as it spent $1.3 billion in 2023 to acquire stakes in four local construction companies.
Binladin Group, operating in construction, power, and industrial sectors, has a prominent role in both local and international projects. The construction division has contributed to significant projects in Saudi Arabia, such as the expansion of the Holy Mosque in Makkah and Al-Faisaliah Tower in Riyadh. Internationally, the group has undertaken projects like Kuala Lumpur Airport and Sharm El-Sheikh Airport. If the deal materializes, it would signify a strategic partnership between PIF and Binladin Group, contributing to the Kingdom’s economic diversification and development goals.