Saudi finance minister says efficiency initiative saves SAR80bn

Saudi Finance Minister Mohammed al-Jadaan said a government efficiency office created last year to review state projects has saved the kingdom SAR80bn ($21bn) on costs, according to the ministry’s official Twitter account.

Jadaan expects increased savings this year and in future years to have a positive impact on the kingdom’s finances.

The ministry has also set up a mechanism to reimburse contractors within 60 days, as promised in December, he said.

Contractors in the kingdom have been beset by delays in recovering payment and some projects have stalled as the government grapples with plugging a budget deficit because of lower oil prices.

The government last month said it had settled unpaid bills to the private sector and promised to pay future bills within 60 days of receiving them.