Binladin pays a month’s back wages to 35,000

Updated 19 May 2016
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Binladin pays a month’s back wages to 35,000

RIYADH: Seven Saudi banks have paid SR100 million to workers of troubled Saudi Binladin Group, covering only one month of the money owed to them, according to a report in a local publication Wednesday.

These monies were for about 35,000 Saudi and expatriate workers earning under SR4,000. The vast majority will likely be paid by Ramadan 15, sources were quoted as saying. Other sources said the company secured a SR2.5 billion loan from a group of local banks to pay employees’ wages and end-of-service benefits.
Binladin has declined to describe its financial situation publicly, but Gulf commercial bankers have said they believe it owes local and international banks a total of about $30 billion, and some think it may have to restructure some of that debt.
Many workers have reportedly refused to leave the country because they are afraid they may not be paid once they do so. There are hundreds of Saudis earning over SR5,000 who have not been paid, causing them distress as Ramadan approaches and regular payments on cars and other items become due.
Binladin recently fired 80,000 workers because it said that it wanted to rationalize costs. The company was recently allowed to compete for new contracts after the government lifted a ban on its operations following last year’s crane crash in Makkah, for which it was held partially responsible.
A Binladin spokesman said in an emailed response to Reuters news agency that the company doesn't comment on its financial issues or relationships with business partners.
"We remain focused and committed to carry out our promise and deliver the contracted projects to the highest standards and satisfaction of our clients, as we have always been doing."
Two of the sources, declining to be named because of commercial sensitivities, said Binladin had pledged land as collateral for the loan. They did not elaborate on the size or location of the land, or how long the loan was for.
When the government lifted the ban on bidding for state projects on May 5, it also removed a travel ban imposed on top Binladin executives after the disaster. Days later, Binladin made delayed salary payments to some 10,000 workers.


King Salman launches restoration program for Tarif historical district

Updated 10 December 2018
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King Salman launches restoration program for Tarif historical district

JEDDAH: King Salman patronized on Sunday the inaugural ceremony for the restoration of the Tarif historical district in the presence of leaders, presidents, and delegations from Gulf Cooperation Council (GCC) countries.

The program aims at the development of the ancient historical city so as to transform it into an international tourist and cultural hub. It also aims to list it among the world heritage sites.

In a speech delivered during this ceremony, Prince Faisal bin Bandar, Governor of Riyadh region, thanked King Salman for his support of the program, which coincides with the fourth anniversary of the king’s ascension to the throne.