Saudi Arabia sets aside SAR 100 bln to pay delayed dues

Saudi Arabia’s government has 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 total size of unpaid dues has not yet been disclosed.

According to the document— labeled as urgent— the finance minister was authorized to take the necessary procedures required to pay all delayed payments by the end of the current fiscal year.

Payments should not exceed SAR 100 billion and will be financed from budget surpluses accumulated in previous years, the document added, without stating whether the government expects to pay out all of the maximum amount allocated.

Government agencies are required to register payment orders at the finance ministry website within three weeks, the document added.

Last week, the kingdom’s Council of Economic and Development Affairs (CEDA) approved settling payments to the private sector, which have been delayed for several months on the back of sharp declines in oil revenues, before the end of this fiscal year, Argaam reported.