Saudi Oger takeover deal may be approved within 'weeks': report

A decision on the planned buyout of Saudi Oger may be approved and announced by authorities within a few weeks, Middle East Economic Digest (MEED) reported, citing two unnamed Saudi-based bankers.

Saudi Oger, the kingdom's second largest contractor, could be taken over by private investors close to the country's ruling family, the sources revealed.

In addition, a royal decree could be issued to give control of Saudi Oger to a state-owned investment firm before the upcoming Eid holidays, the bankers added.

The Saudi government is aiming to resolve an ongoing labor crisis brought on by a slowdown in the construction sector and lower oil prices. Authorities are also looking to protect lenders that have a combined exposure to the lender estimated at SAR 13 billion ($3.45 billion).

No officials at Saudi Oger were available for comment, according to MEED.

Saudi Oger has not paid $800 million to its employees for several months, according to recent media reports.

Earlier this month, Saudi Arabia’s government was said to be in talks to buy out Saudi Oger, which is owned by the family of former Lebanese Prime Minister Saad Al-Hariri.