Rawabi Holding Taps Alvarez & Marsal for Strategic Review to Manage $3 Billion Debt Obligations

Saudi Arabia's Rawabi Holding is working with Alvarez & Marsal on a strategic review to free up liquidity. The company is renegotiating borrowings with Banque Saudi Fransi and considering other refinancing talks to manage its financial obligations, which total at least $3 billion. Rawabi denies any concerns about debt management and claims lenders have been supportive throughout economic cycles.

Saudi Arabia's sprawling conglomerate, Rawabi Holding, has enlisted the services of global consulting firm Alvarez & Marsal to conduct a strategic review aimed at freeing up liquidity. The company, which operates across energy, industrial services, and real estate sectors, is currently renegotiating its borrowings with Banque Saudi Fransi, a local bank, as part of its ongoing efforts to manage its financial obligations.

According to people familiar with the matter, Rawabi Holding's financial obligations total at least $3 billion, including a $1.9 billion syndicated loan to its subsidiary Rawabi Energy [1]. The company is exploring various refinancing options to address its debt management, with Banque Saudi Fransi being a key focus. Rawabi Holding has a history of successful refinancing and maintains a strong financial management record, as reflected in the high-quality security packages offered to its lenders.

While the company has not disclosed the scale or timeframe of the refinancing talks, it remains committed to all its financial obligations. Rawabi Holding's lenders have been consistently supportive throughout various economic cycles, a testament to the company's robust asset base and strong financial management [1].

This strategic review comes at a time when Saudi Arabia is also reassessing its ambitious futuristic city project, The Line, which is part of the Neom development project. The kingdom is seeking consulting firms to review the feasibility of the current plans for The Line and suggest possible changes. This review is part of broader efforts to shift the country's economy away from reliance on oil, as outlined in the Vision 2030 plan [2].

Despite these reviews, both Rawabi Holding and NEOM, the organization responsible for The Line, have emphasized that the strategic reviews are routine for large-scale projects and do not indicate any delays or scaling back of the projects. Rawabi Holding continues to operate under the guidance of its lenders, with a focus on maintaining operational continuity, improving efficiencies, and accelerating progress to meet its overall vision.

References:

[1] https://www.bloomberg.com/news/articles/2025-07-22/saudi-arabia-conglomerate-rawabi-taps-alvarez-marsal-for-strategic-review

[2] https://www.tradearabia.com/News/434899/Saudi-Arabia-seeking-consultants-for-strategic-review-of-The-Line%2C-says-report