Advertisement

Arab states owe over $2.5bln to contractors - newspaper

The group of workers working at a construction site.

The group of workers working at a construction site.

06 March 2017

Arab governments owe more than $2.5 billion in outstanding fees to local contractors and this has created a severe liquidity problem for the companies, Saudi Arabic language daily Al-Riyadh reported on Sunday.

Fahd Al-Hammadi, chairman of the Cairo-based Federation of Arab Contractors, told the newspaper that more than 53 percent of Arab contracting firms are suffering from cash shortages because of governments' failure to pay on time.

"Available data shows that the outstanding fees for the Arab contracting sector exceeds $2.5 billion..…this reflects the liquidity constraints and the pressure which the sector is facing," he said, adding that several companies have been forced out of the market because of the cash crunch and the problem could worsen.

"…the problem could exacerbate due to the downturn in construction activity and the decline in public spending on infrastructure projects in the region," he said.

Advertisement
© Zawya Projects News 2017
Advertisement

Most Popular

In the last 24 hours

Advertisement
Advertisement