Saudi construction company Abdullah Abdul Mohsin al-Khodari & Sons on Tuesday said projects in the kingdom worth SAR 362.2 mn had been delayed due to various reasons, reported Reuters.
Reasons for these delays include clients’ funding shortages, design changes and slow visa issuance. The Saudi construction sector in general has been crippled by the low oil price which squeezes liquidity and has led to severe payment delays by government agencies.
Khodari, which recently posted a wider third quarter net loss, put its total backlog at SR 3.01 bn at the end of the third quarter compared to SR 4.67 bn at the same time last year.
Pressure on construction firms might be easing though, with the Saudi government planning to pay dues by year’s end. Fawwaz Al-Khodari, Chief Executive of Khodari, stated that so far 10-15% of the SR 500 mn owed to Khodari by government agencies had been paid and they expected to receive 40-45% by year’s end as the best case scenario.