Built to inform

Sign up for the daily newsletters

No, Thank you

Worker costs dent Al Khodari profits

Al Khobar-based firm witnesses huge hike in 2013 contract wins

NEWS, Business

Saudi Arabian contractor Abdullah AM Al Khodari & Sons has reported that its profits more than halved in 2013 to $17.2mn (SR64.3mn).

The company blamed the decrease on higher costs, which rose by around 15%, and a fall in non-core income.

Saudisation issues were partly to blame, it said, as the $640 (SR2400) levy per non-Saudi worker employed above a certain ratio adding $6.9mn (SR26mn) to its annual work permits bill (an annual increase of 815%).

It also said that the number of visas issued for workers was far lower than those which the company needed, meaning that it had to take on temporary labour at double the rates that the company pays its own staff. This led to a $10.1mn (SR38mn) rise in temporary staff costs.

On a brighter note, the company, which mainly carries out work for government clients, saw its pipeline of new projects almost trebled during the year.

It secured contracts worth around $720mn (SR2.7bn) - up from $253mn (SR950mn) in 2012. This brought its total backlog up to $980mn ($3.7bn).

 

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 761
Mar 21, 2020