Saudi Binladin Group ‘still a private sector company’

Saudi Bin Laden Group Company (SBG) has asserted that it remains a private sector company owned by its shareholders. ​(Archive)
Updated 14 January 2018
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Saudi Binladin Group ‘still a private sector company’

JEDDAH: Saudi Binladin Group (SBG) on Saturday said it remains a private sector company owned by its shareholders, according to a statement sent to Arab News.
Earlier unconfirmed reports issued by some media outlets suggested that the Saudi government had taken over SBG, the Kingdom’s construction giant which has worked on dozens of megaprojects over the decades.
SBG also confirmed that contracted work with the government, which remains a significant part of its activities, is ongoing. This includes projects currently operating in the two holy mosques and the Zamzam rehabilitation project, which began months ago and is expected to end before Ramadan 2018.
Based on information available to SBG management, some shareholders may have agreed a settlement that involves transferring some SBG shares to the government of Saudi Arabia against outstanding dues.
SBG said this was a positive step and is currently restructuring its governance and executive management team to meet its commitment toward all stakeholders, according to the statement.
Restructuring efforts started two years ago with the objective of separating ownership from management in accordance with best governance standards.
To support those efforts, a supervisory committee was created. The committee is composed of five members, including three independent members — Dr. Abdulrehman Hamad Al-Harkan, Dr. Khaled Hamza Nahas and Khaled Mohammed Al-Khowaiter — and two members from the shareholders group, Yahia Mohammed Binladin and Abdullah Mohammed Binladin.
The committee will restructure the group and empower the new executive management to lead the projects and overcome the current challenges, leading the company to be profitable again, the statement said.
SBG, which had more than 100,000 employees at its height, is the biggest builder in Saudi Arabia. It was hit hard after the crash in oil prices, which led to construction projects and government contracts being scrapped or delayed. The company was forced to lay off thousands of workers.
The contractor also suffered a temporary exclusion from new state contracts after a crane accident killed 107 people at Makkah’s Grand Mosque in 2015.


India’s Jet Airways and Saudi Arabia’s flynas strike codeshare deal to boost inter-city travel

Updated 45 min 39 sec ago
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India’s Jet Airways and Saudi Arabia’s flynas strike codeshare deal to boost inter-city travel

  • Under the agreement, travelers will be able to use either airline for their trips between the two countries and on some domestic connections
  • Codeshare agreement will support close to 6 million passengers who travel between Saudi Arabia and India for religious tourism and business purposes

LONDON: The Indian airline Jet Airways has signed a codeshare agreement with Saudi Arabia’s budget airline flynas, which will improve the connectivity between major Indian and Saudi Arabian cities.
Under the agreement, travelers will be able to use either airline for their trips between the two countries and on some domestic connections.
Flights are on sale now with customers able to travel on codeshare flights from Tuesday.
“This partnership is an important step in-line with flynas’ expansion and development strategy. Through such agreements we aim to offer a continually improved service to our passengers by adding more travel routes and expanding our reach regionally and internationally, in particular to key markets such as India,” said flynas’ CEO, Bander Al-Mohanna.

 

Jet Airways will place its marketing code “9W” on flynas flights between Dammam and Jeddah and Riyadh. The code will also be placed on connections from those cities to the holy city of Madinah as well as Gizan, Gassim, Taif and Abha. This will enable Jet Airways customers to fly into one Saudi city and leave via another.
Flynas will place its marketing code XY on Jet Airways’ international flights connecting Jeddah to Mumbai, Riyadh to Mumbai and Delhi. It will also cover flights from Dammam to Mumbai and Delhi.
Flynas will place its code on some destinations within Jet Airways domestic network, via Mumbai to Delhi, Kochi, Bengaluru, Hyderabad, and Lucknow as well as via Delhi to Bengaluru, Lucknow, Chennai and Kochi.
The codeshare agreement will support close to 6 million passengers who travel between Saudi Arabia and India for religious tourism and business purposes, said Marnix Fruitema, executive vice president — commercial, Jet Airways.
“Saudi Arabia is the second largest international travel market to and from India,” he said in a statement.

FACTOID

Saudi Arabia is the second largest international travel market to and from India.