RIYADH: Construction companies in Saudi Arabia are delaying paying staff as a result of the growing pressure on the country’s economy hit by sliding oil prices, Reuters reported.
The Saudi Ministry of Labor said this week that workers at a “major institution” had complained about not being paid for months. The ministry found out that the complaints were true. Unnamed sources told Reuters the firm was in the construction sector and several other companies in the industry faced similar problems.
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An executive at a large Saudi construction firm said his company has had problems paying employees for a few months. “It’s not just us, it’s several construction companies that work on government projects,” he said. Payment delays increased lately as the government wants to cut the cost of contracts to preserve cash. The construction sector is the hardest hit as companies depend heavily on government business for their cash flow.
