RIYADH: Contracting giant Saudi Binladin Group (SBG) has repaid an SR1 billion ($266.7 million) Islamic bond that matured in late June, a sign of modestly easing pressure on the firm, banking sources told Reuters.
The payment came after a delay of several weeks and used money from an SR2.5 billion loan the company secured from two local banks in May, the banking sources said.
A Binladin spokesman declined to comment on the company’s financial situation.
Gulf commercial bankers have said they believe it owes local and international banks a total of about $30 billion.
The SR2.5 billion May loan was raised to help pay for the costs of laying off staff, including back salaries and severance costs, sources said at the time.
However, some of this cash — which was only secured after Binladin put up land as collateral — has now been diverted to meet the sukuk obligation.
Binladin issued an Islamic bond with a 364-day tenor worth SR1 billion in late June of last year, priced with a profit rate of 2.5 percent, Reuters reported at the time.
The investment banking arm of Gulf International Bank and BNP Paribas’ Saudi unit arranged the sukuk, which was to be used to finance costs related to its work at the King Abdul Aziz International Airport in Jeddah.
Binladin’s liquidity has been squeezed for months as a result of a general slump in construction, and as the government cut spending and delayed payments in response to low oil prices.
The company has suffered even more severely since the Saudi government barred it from bidding for new state contracts last September, after one of its cranes fell in MaKah’s Grand Mosque during a storm, killing 107 people. The ban was lifted in May.
The crisis has forced Binladin to halt work on several high-profile projects in the Kngdom and delay months of salary payments to workers — an action which resulted in rare public protests in the kingdom.
In the past few months, it has laid off some 70,000 workers, all of whom were compensated, according to the SBG spokesman.
Binladin Group makes delayed payment on SR1 billion sukuk
Binladin Group makes delayed payment on SR1 billion sukuk
Oman launches 2026–2030 SME plan as fiscal recovery strengthens
RIYADH: Oman has launched a five-year plan to expand its small and medium-sized enterprise sector, seeking to deepen private-sector growth as the sultanate consolidates recent fiscal gains and returns to investment-grade status.
The 2026–2030 SME Sector Implementation Plan, unveiled by the Small and Medium Enterprises Development Authority, or Riyada, aims to improve market access, boost SME competitiveness and raise the sector’s contribution to the economy, according to the Oman News Agency.
The plan supports innovation and entrepreneurship while promoting the transition to a knowledge-based economy, the Oman News Agency reported.
The initiative forms part of Oman Vision 2040 and the Eleventh Five-Year Development Plan, which prioritize private-sector expansion, diversification and job creation.
The launch follows Fitch Ratings’ decision earlier this month to upgrade Oman to investment-grade status, raising the country’s long-term foreign-currency rating to BBB- from BB+. Fitch cited stronger public finances, a sharper reduction in government debt and an improved external position.
“The implementation plan is based on several key strategic pillars, most notably: market access and value chains, financing and investment, enhancing local content, and developing a culture of entrepreneurship, skills, and innovation,” the ONA report stated.
It added: “These pillars were developed through a participatory approach with contributions from several government and private entities supporting the SME sector, and are based on studies, benchmarking, and international best practices.”
The plan also includes a package of specialized programs and initiatives targeting different stages of SME growth. These include measures to improve readiness for expansion and exports, integrated financing programs, initiatives supporting handicrafts and the creative economy, and the development of a network of entrepreneurship centers across Oman’s governorates.
Riyada said implementation of the plan would help strengthen the sustainability of SMEs, create quality job opportunities and empower entrepreneurs to build viable and scalable businesses, enhancing the competitiveness of the national economy.
Oman has made significant progress in strengthening fiscal discipline, reducing government debt to around 36 percent of GDP in 2025, down from about 68 percent in 2020.
With the outlook remaining stable, Fitch expects the budget deficit to remain at a manageable level of around 1 percent of GDP in 2026 and 2027, assuming an average Brent crude price of $63 per barrel. The fiscal breakeven oil price is estimated at around $67 per barrel over the same period.
