RIYADH, Nov 20 (APP): After the announcement of Deputy Crown Prince of Saudi Arabia Mohammad Bin Salman, chairman of the Consul for Economic and Development Affairs regarding outstanding payments of contractors, the Saudi government has paid SAR 40 billlion owed to contractors.
This payment to contractors 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 Saudi government is expected to pay up to 80 per cent of the
total dues to contractors during remaining few weeks of this year by disbursing another SR 100 billion,” Chief of the National Contractors Committee at Council of Saudi Chambers, said here. The funds released by the Kingdom would help the companies to pay what is owed to foreign workers and create cash flow in the market, he added.
He said 80% backlogs payment would be clear with in weeks. He said
the most of the projects those were stopped due to the payments issue would be revived and implemented in order of priority.
The contractors, which are receiving payments are not all from Saudi Arabia. They also belong to Germany, Turkey, Spain and India.