Saudi allows Binladin Group tenders after layoffs: Report
Saudi authorities have allowed Binladin Group to tender for public building projects in the kingdom again, local media reported, just days after the construction giant reportedly laid off 77,000 foreign workers, about one-third of its total workforce.
The Saudi al-Watan newspaper reported on Thursday that a royal decree passed this week granting it tender permission could aid the struggling group.
Binladin has faced unprecedented scrutiny since one of its cranes collapsed in Mecca last September, killing more than 100 people.
The paper had earlier reported that as of last Sunday 77,000 of the firm's workers had been laid off.
The group confirmed some departures, but refused to provide an exact figure. As a result of the decree, several projects involving Binladin Group, including the King Abdelaziz Airport in Jeddah, would resume, al-Watan cited an aviation official as saying.
Reports surfaced earlier this week that 17,000 local Saudi staff had also been axed because the firm had not paid them for months.
However, a deal seems to have been struck in which the vast majority of the employees promised to hold out and keep working in exchange for a bonus payment.
Binladin Group was founded more than 80 years ago by the father of al-Qaeda leader, Osama bin Laden.
It developed landmarks including the domed Faisaliah Tower in central Riyadh and the Mecca Royal Clock Tower, one of the world's tallest buildings.
After decades of thriving on lucrative government contracts, the company faced unprecedented scrutiny following the crane collapse on a major expansion of the Grand Mosque in Mecca, Islam's holiest site.
At least 109 people including foreign pilgrims died, leading King Salman to suspend the firm from new public contracts.
This has been a factor in the firm's economic difficulties, a well-informed source has told AFP.
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