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Article

5 May 2016

Author:
Andrew Torchia, Reuters

Saudi government lifts project bidding ban on Binladin group

Saudi Arabia has allowed major builder Saudi Binladin Group to resume bidding for state projects...in a decision that may ease financial pressure on the troubled firm and banks which lend to the group. There are strong reasons for the government to ease the financial pressure on Binladin; it is involved in projects considered strategic for the economy, such as the Jeddah airport, and few other local firms have its capacity. Also, Binladin's financial problems could weaken the wider economy. Some of its suppliers have been hurt, and al-Watan reported on Monday that the company was expected to lay off 12,000 of 17,000 Saudis...that could be politically difficult for the government as it seeks to prevent an economic slowdown due to low oil prices from boosting unemployment. 

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