Saudi Starts Paying Billions Owed to Saudi Oger and Other Private Firms

The Saudi Ministry of Finance began paying billions of dollars owed to private firms and construction companies after oil revenues collapsed, including Saudi Oger, that have already carried out work for the state totaling about 100 billion Saudi riyals or about $ 26 billions.

The orders came after an announcement of the Council of Economic Affairs and Development, headed by powerful Deputy Crown Prince Mohammed bin Salman, said the kingdom will pay the outstanding amount before the end of December.

One of the companies that will benefit from this decision is the Saudi Oger construction firm which is led by newly nominated premier Saad Hariri, and the Bin Laden Group which announced last month that the Saudi government had paid it "some benefits", allowing it to cover some of the salary arrears to employees.

The Saudi decision came in parallel with information that Saudi Oger had asked the banks to agree on freezing its debt payments, paving the way for rescheduling the debt on the one hand and paying its employees from the money it will get from Saudi Arabia's treasury on the other.