Group forecasts oil demand to grow by 2.2 million barrels a day this year
energy4 hours ago
Saudi Arabia's government has made payments of 40 billion riyals ($10.7 billion) that it owed to private sector companies, the Arab News newspaper quoted a senior construction industry executive as saying.
With its oil revenues slashed by low crude prices, the government of the world's largest oil exporter has cut spending sharply this year and reduced or suspended payments owed to construction firms, medical establishments and even some of the foreign consultants who helped to design its economic reforms.
The payment delays have tightened liquidity in the banking system and caused severe financial problems for some companies, particularly those in the construction industry. In recent weeks, top officials have indicated that all or most of the delayed payments would soon be made.
Construction firms have received 40 billion riyals in the past two weeks, representing 25 per cent of money owed to them by various government agencies, Fahad Al Hammadi, chief of the National Contractors' Committee at the Council of Saudi Chambers, a business association, was quoted as saying by Arab News on Sunday.
"The Saudi government is expected to pay up to 80 per cent of the total dues to contractors during the remaining few weeks of this year by disbursing another 100 billion riyals," he told the newspaper.
"More then 80 per cent of the back-logged payments will be released within the next few days or weeks."
The government set aside 100 billion riyals to pay debts that it owed to private sector companies after the payment delays, which lasted months, Reuters reported on Nov. 11, citing an official document.
Authorities have not disclosed the total size of the unpaid bills. Most construction projects suspended as a result of low oil prices will eventually be revived and implemented in order of priority, Hammadi also told the newspaper.
Arab News said some construction firms from Germany, Turkey, Spain and India, contacted by Arab News on Saturday, had confirmed they were being paid their dues.
Group forecasts oil demand to grow by 2.2 million barrels a day this year
energy4 hours ago
The Pakistan-born opening batter got more votes than superstar Shaheen Afridi as he became the first UAE player to win the ICC award
cricket4 hours ago
Emaar Development’s sales backlog has increased to Dh65.7 billion
realty4 hours ago
The former US president and Republican presidential candidate has pleaded not guilty and denies any sexual encounter with Stormy Daniels
americas4 hours ago
Maritime India Vision 2030 envisions investment of Rs1.25 trillion
business4 hours ago
The project aims at turning Dubai into a pedestrian-, environment- and family-friendly city
uae4 hours ago
Book your tickets for amazing musical experiences, featuring international artists and local talent
entertainment5 hours ago
Reynolds and Lively have maintained a level of privacy, choosing not to disclose the sex of their children until birth
entertainment5 hours ago