Saudi Arabia Makes $10.6bn Payment to Contractors

Saudi Arabia has made a payment of SR40 billion ($10.6 billion) it owed to private companies, in less than two weeks, after Deputy Crown Prince Mohammed bin Salman, chairman of the Council for Economic and Development Affairs, announced a settlement of dues to the contractors, said a report.

The government is likely to disburse another SR100 billion ($26.6 million) next month to pay up to 80 per cent of the total dues to contractors next month, reported Arab News, citing Fahad Al Hammadi, the chief of the National Contractors’ Committee at the Council of Saudi Chambers.

The payment was late due to a sharp decline in oil revenue and the new measures taken by the kingdom to reduce spending on several projects.

The funds released by the Kingdom will help the companies to pay what is owed to foreign workers, and will create cash flow in the market, he stated.

“More than 80 per cent of the backlogged payments will be released within the next few days or weeks,” revealed Al Hammadi.

Predicting a growth in the contracting sector, he said that most of the projects, which were suspended earlier, will 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 at its meeting under the leadership of Prince Mohammed bin Salman,” he added.

 

(Source: TradeArabia.com)

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker