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Saudi Arabia’s outstanding payments to Tadawul-listed contractor Abdullah A. M. Al-Khodari Sons Co. amount to SAR 400 million, chief executive Fawwaz Al-Khodari told CNBC Arabia.
The construction firm’s backlog reached SAR 2.8 billion by the end of the first quarter of this year, he added.
Last November, the Saudi government set aside SAR 100 billion ($26.7 billion) to settle overdue payments of private sector companies, Reuters reported, citing an official document issued by the finance ministry to all government agencies.
The Saudi construction sector has been hit hard by tumbling oil prices, as the decline in government revenues led to a slowdown in project spending and delays in payments to contractors.
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