Saudi pays SAR40bn owed to contractors

An officially has indicated delayed projects would be revived following the payments



Saudi Arabia has paid SAR40bn ($10.66bn) owed to private sector construction firms in the kingdom and will pay another SAR100bn ($26.65bn) in the coming weeks, according to reports.

Arab News quoted Fahad Al-Hammadi chief of the National Contractors’ Committee at the Council of Saudi Chambers for the figures.

He said the government is “expected to pay up to 80 per cent of total due to contractors during the remaining few weeks of the year”.

The SAR40bn payment represented 25 per cent of the dues from different government agencies, Al-Hammadi confirmed.

The official also indicated that many of the projects suspended this year due to government budget constraints would be revived and implemented in order of priority.

“A new positive phase for the construction and building sector has come following a package of measures taken by the Council for Economic and Development Affairs at its meeting on November 7 under the leadership of Prince Mohammed bin Salman,” Al-Hammadi told Arab News.

He said the council had discussed how to pay the contractors with transparency and would pay the amounts owed from the public treasury.

Construction firms including Saudi Oger and Saudi Binladin Group have laid off tens of thousands of workers and left many without pay for months after delays to government payments earlier in the year.

Read: Hundreds of Saudi Oger workers fly home with unpaid dues

Reports this month suggested SAR100bn had been set aside to settle delayed payments.

Read: Saudi sets aside SAR100bn to settle delayed private sector payments

Comments

comments