There has been a major change in the shareholding of the Saudi Binladin Group (SBG) with key family members giving up shares in the company.

According to media reports that quote Saudi Arabia’s commerce ministry. Bakr, Saleh and Saad Binladin have transferred their 36.2 per cent stake in the Saudi Binladin Group to Istidama Holding Company.

In January this year, SBG issued a statement saying it is still a private sector company owned by its shareholders. The statement was issued in response to reports that the government had taken managerial control of the company.

At the time SBG said some shares in the company may have been transferred to the government in settlement of outstanding dues.

Former company chairman, Bakr Binladin, was detained as part of the corruption crackdown in the kingdom in late 2017 that saw hundreds of prominent Saudi businessmen detained at the Ritz Carlton Hotel in Riyadh.

The health of Saudi Arabia’s construction sector is a concern for the Riyadh as it prepares to start work on a new wave of major projects such as the $500bn Neom city.

Over the past three years, the traditional major players such as SBG and Saudi Oger that would have been relied upon to build such large projects have struggled financially and this has forced Riyadh to look at new delivery options.

These options include buying stakes in foreign companies, forming joint venture contracting companies with the private sector, and engaging programme, project and construction management consultants.