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Saudi Arabia is in the process of setting up an online platform to settle dues owed contractors, as well as suppliers at some government entities, said Majid Al-Qasabi , Minister of Trade and Investment.
While the government has settled all dues owed to the private sector companies, delays in payments could be attributed to administrative issues at some government entities, Al-Qasabi said.
In September, the Ministry of Finance said it had paid SAR 525 billion dues under 345,000 invoices for 450 government-related entities until mid-September.
A total of 125,000 invoices-- around 36 percent of total payments --were related to private sector companies.
Saudi Arabia’s construction sector has been severely affected by the tumble in oil prices since mid-2014, which led the government to cancel or delay projects and halt payments owed to contractors.
Hit by high debts, major contractors laid off thousands of workers and delayed wages, leading to protests in the country last year.
The Kingdom has revealed initiatives this week to ease the impact of austerity measures, such as the launch of the Citizen’s Account, a cash-transfer program to support low and middle-income families against subsidy cuts and new taxes.
Saudi ruler King Salman also issued a royal decree this week approving the allocation of SAR 72 billion to stimulate the private sector.
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