Built to inform

Sign up for the daily newsletters

No, Thank you

Defunct contractor Saudi Oger's debt reportedly valued at $10.7bn

Liquidated Riyadh-based contractor reportedly owes suppliers $5.9bn, and currently holds $45,590 in its bank account

Saudi Oger was based in Riyadh.
Saudi Oger was based in Riyadh.

A Riyadh court has calculated the accumulated debts of liquidated contractor Saudi Oger – hit in part by the 2015-16 slowdown in Saudi Arabia’s construction sector –  at more than $10.7bn (SAR40bn), local media reported.

This amount, according to Saudi Gazette, includes $5.9bn (SAR22bn) owed to suppliers and $693.2m (SAR2.6bn) in employee-related outstanding dues, such as delayed salaries and allowances, end-of-service awards, and other entitlements.

Court sources told the local newspaper that $22.3m (SAR83.76m) was in the court’s custody, with the balance of the company's bank account standing at $45,590 (SAR171,000).

According to the report, more than 6,000 people have approached the court demanding it to intervene and get their dues paid, in addition to a number of banks and private companies.

The news comes after news broke in August 2016 that the Riyadh-based construction company was expected to declare bankruptcy to get over its acute finical problems.

The company failed to pay financial dues to medical insurance companies, resulting in the stopping of insurance to its employees, a Saudi Oger source told the Saudi Gazette at the time.

Oger was largely seen as victim of a slowdown in the Saudi construction sector due to low oil prices and state spending cuts, with wage payments to thousands of its workers having been delayed, according to Saudi media. 

Most popular

Awards

Dubai's JW Marriott Marquis Hotel to host CW Awards 2019
15th edition of the CW Awards will be held at the five-star Dubai hotel to

Conferences

Leaders UAE 2019: ALEC, CSCEC ME, Arada bosses on diversification
EXCLUSIVE: Kez Taylor, Sachin Kerur, Elie Mrad, and Grigoris Christofides share insights at Leaders UAE

Latest Issue

Construction Week - Issue 749
Sep 15, 2019