Contractors get $10.6bn payments
01 December 2016
Saudi Arabia last month made payments totalling SR40 billion ($10.6 billion) it owed to private companies, after Deputy Crown Prince Mohammed bin Salman, chairman of the Council for Economic and Development Affairs, announced a settlement of dues to the contractors.
The government is likely to disburse another SR100 billion ($26.6 billion) this month (December) 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,” he said.
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.
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