Binladin group coming out of financial crisis

COMING AROUND: The Saudi Binladin Group has hired around 30 finance and management experts to draw the plans for its financial recovery after it was allowed to bid for new contracts.
Updated 22 July 2016
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Binladin group coming out of financial crisis

JEDDAH: According to experts the Saudi Binladin Group, the biggest company working in the construction sector of the country, has drifted back from the brink of economic crisis.

The group faced a severe blow last year after oil prices fell drastically, forcing the government to cancel or suspend a number of projects, postpone payments and stop new contracts after one of their cranes fell on the Grand Mosque of Makkah resulting in the death of 107 people.
The acute shortage of liquidity had forced the Binladin Group to stop work on a series of projects and relieve thousands of its employees and workers. Many of its foreign workers have not received their salaries and were only paid a stipend amount that meet their day-to-day needs. Some of these employees, in an act of protest, even went so far as to burn buses of the company.
The government has taken a firm approach toward this issue over the last three months by allowing the company to begin pushing for new biddings. The Arab National Bank and Saudi British Bank have given the company long-term loans amounting to SR2.5 billion which enabled it to pay the salaries of 10,000 of its workers, reimbursing its bond amount and restarting its activities within some of the suspended projects including King Abdulaziz Airport in Jeddah in June. The group has also hired around 30 finance and management experts to draw the plans for its financial recovery.
The spokesman of the group said that it has now compensated 70,000 of its foreign workers after ending their contracts (this was out of a total of 200,000 workers). Bankers say that reducing the number of workers is a positive step. However, the group is still facing pressure as it requested a loan of SR817 million last week and used it for financing construction work in the Grand Mosque.
Nonetheless, commentators have said that the company is moving forward on a promising path.


King Salman approves health care programs

King Salman
Updated 53 min 31 sec ago
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King Salman approves health care programs

  • Clinical coding licenses and standards will be included in unified national standards for accreditation of health facilities
  • The training program aims to improve the quality of health care and control expenditure

JEDDAH: King Salman on Sunday approved the implementation of an electronic sick-leave system, and directed relevant authorities to coordinate with the Civil Service Ministry in case of any amendments to the terms for granting sick leave.
He also approved a program to train Saudi professionals in clinical coding. The Saudi Health Council and the Human Resources Development Fund (Hadaf) are cooperating to implement the training program, whose aim is to encourage the private health sector to hire the program’s graduates by leveraging the funding provided by Hadaf.
The training program aims to improve the quality of health care and control expenditure. The Health Ministry’s General Directorate of Licenses will establish an electronic network linked to the licensing system of the Clinical Coding Department at the National Center for Health Information.
The Council of Cooperative Health Insurance will work with the Saudi Health Council to develop controls and find ways to employ graduates at private health care institutions.
Clinical coding licenses and standards will be included in unified national standards for accreditation of health facilities.
This initiative is part of the Saudi Health Council’s efforts to contribute to achieving the Vision 2030 reform plan, whose objectives include the Saudization of certain professions that are vital for the national economy.