Saudi Contractor MMG Discloses Concerns About Company’s Future

Monday, 21st November 2016

Saudi construction company Mohammad Al Mojil Group (MMG) released a statement on Sunday, concerning a letter to the Deputy Crown Prince Mohammed bin Salman (MbS), citing “Doubts over the company’s ability to continue.”

In the letter to MbS, released to the Tadawul, the company said it might not be able to continue operations, citing serious financial losses. Also mourning constraints imposed by banks and the government and other legal restrictions.

The company did not specify whether it was seeking financial aid or assistance from the crown prince, who heads Saudi Arabia’s Council of Economic and Development Affairs.

MMG suffers from a general crisis in the kingdom’s construction sector. The company’s shares have not been traded on the stock exchange since July 2012 when it overextended in an attempt to take advantage of a building boom in the country, reported Arabian Business.

The report also stated the company had cut its workforce from 25,000 to 3,000 workers in an effort to restructure itself, also claiming it is still owed hundreds of mns of riyals.

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