The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

The shake-out at Redec. (economic problems for Saudi Arabian companies, including Saudi Research and Development Corporation, a.k.a. Redec)


Somewhere off the south of France in early 1986 French officials seized a freighter belonging to Saudi Research and Development Corporation (Redec). The ship was one of nine owned by Redec but it had been mortgaged to Wardley Limited, a subsidiary of the Hongkong and Shanghai Banking Corporation.

Wardley was worried. Redec owed the company SR34.5 million ($10 million) and was reported to be in trouble. Wardley moved fast and had the ship held. Redec promptly retaliated. It applied to the French authorities for repossession, promising to issue a bond setting out fresh repayment terms. But by then the ship had sailed to Crete. Redec switched its application to the Greek courts and finally managed to reclaim the ship.

That one episode in the continuing drama of a struggling company, incidentally the biggest private sector concern in Saudi Arabia. Its problems illustrate the plight of a private firm borrowed heavily in anticipation of compound growth, fed by lavish government spending. Now the spending is over and great houses have gone downhill.

In August 1984 the Ali and Fahd Shobokshi Group had to reschedule more than $400 million in general purpose debt.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?