Saudi Arabia’s National Debt Management Centre (NDMC) has announced that it has completed arranging a syndicated loan facility for the Ministry of Finance to support the revival of local contractor Saudi Binladin Group.

In an official statement, NDMC said that the loan facility, amounting to SR23.3bn ($6bn), has been secured with several local and international banks.

The move is in line with the Ministry of Finance’s announcement in July, which outlined its plan to take steps to improve the Saudi Binladin Group’s financial capacity.

According to local media reports, the government initiative includes a series of arrangements to settle the firm’s outstanding amount with banks, provide loans to the firm and potentially increase the government’s stake in the company.

The cash injection into the firm will also enable it to improve its financing for various other projects in the kingdom.

The appointment of Saudi Binladin Group on 2 October to complete the 1,000-metre-plus-tall Jeddah Tower in Saudi Arabia further solidified the case for enhancing the cash-strapped firm’s ability to complete its ongoing projects, including the construction works on two mosques in Mecca and Medina.

“The support is part of the continued government backing provided to the construction and building sector in recent times. This initiative aims to ensure the completion of essential projects and to create attractive investment opportunities within the sector,” the report added.

In 2019, Saudi Arabia formed the Binladin International Holding Group (BIHG). The firm is owned by Istidama, an investment arm of the Saudi Arabian Ministry of Finance. The remaining 63.78% is owned by the Binladin Company for Development & Commercial Investment. Its subsidiaries include Saudi Binladin Group.