Saudi Minister of Finance: Disbursement of extracts from previous and vacillating project contracts with contractors

Saudi Finance Minister Muhammad Al-Jadaan directed the disbursement of extracts from previous and shaky project contracts with contractors.

Al-Jadaan directed to resolve disputes between contractors and government agencies.

on his side; The chairman of the national contractors committee Hamad Al-Hammad said the decision positively reflects on the contractor sector, its prosperity and activity, addressing one of the most important challenges facing contractors, which is the delay in paying dues and its impact on the failure of projects and companies in the sector, in how much the decision will help companies solve financial insolvency problems, provide liquidity and reduce financial burdens, in order to improve their ability to carry out and expand projects.

He added that the committee was thrilled to touch on contractor issues and to submit views and proposals on them to relevant government agencies, including the issue of delayed delivery of extracts and its impact on the contractor and implementation of the contract. project, praising the ability and efficiency of domestic contracting enterprises to carry out various development projects.

It is interesting to note that the procurement sector in the Kingdom plays a fundamental role in economic development: the number of companies in the sector exceeds 176 thousand companies, with an annual growth rate of around 3%, and contributes by 5.5%. to the income of the Kingdom GDP, and 10.7% to the non-oil GDP. In 2021 the number of projects proposed by the State reached over 540 projects, worth more than 120 billion dollars, diversifying in several sectors, the most important of which is construction, energy and transport.

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