(Bloomberg) — Saudi Arabia’s sovereign wealth fund may invest hundreds of millions of dollars in four local construction firms as it looks to bolster an industry that’s been crippled by payment delays from the government in recent years.
The Public Investment Fund is in talks with Nesma Holding, El Seif Group, Almabani General Contractors and Albawani to buy minority stakes in them or their subsidiaries, according to people familiar with the matter. The PIF has hired Rothschild and GIB Capital as advisers and is looking to take stakes of about 30% in each company, the people said.
The wealth fund may also later invest in international contractors working on Saudi projects, the people said.
Saudi Arabia’s Unpaid Tab With Metro Builders Runs Into Billions
The $580-billion PIF is relying on construction firms to build a glut of projects as part of Crown Prince Mohammed Bin Salman’s drive to wean the Saudi economy off oil. The PIF is spending spending hundreds of billions of dollars on tourism resorts, entertainment venues and even an entirely new city.
Talks between PIF and the four contractors are at an early stage and may not result in any deals, the people said. The PIF and Rothschild declined to comment while, GIB Capital, Nesma, El Seif, Almabani and Albawani didn’t respond to requests to comment.
Several Saudi contractors plunged into crisis or collapsed as a result of mis-management and the government withholding payments following the 2014 crash in oil prices.
Saudi Contractors Are Said to Still Struggle With Payment Delays
The government appropriated a large stake in Saudi Bin Ladin Group, the country’s biggest construction firm, in 2018 as part of a settlement amid allegations of corruption. The company is in the process of restructuring bank debts.
Saudi Oger collapsed in 2017 largely due to late payments from government clients. The two firms had for decades been responsible for most of the major infrastructure developments in the country.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
