Riyadh — Finance Minister Mohammed Al-Jadaan ordered to settle disputes between contractors and government agencies over the implementation of the projects. He urged offering additional tools to resolve disputes.
The minister also ordered to disburse contractors’ dues for projects that were implemented earlier as well as for projects that were stalled.
This was revealed by Hamad Al-Hammad, chairman of the National Entrepreneurs Committee. He said the decision would have a positive impact on the outsourcing industry and contribute to its thriving and strengthened business by addressing one of the major challenges faced by outsourcers in terms of late payment of dues. and its impact on stalling projects and affecting businesses. unfavorably.
The decision will help companies resolve financial default issues, provide liquidity and reduce financial burdens to improve their ability to implement and develop projects.
Al-Hammad said such moves would boost the outsourcing industry as cash flow is one of its main drivers and contributes to the sustainability of domestic businesses. “The committee has remained keen to address contractor issues and present views and proposals on them to relevant government agencies, including the issue of late payment of dues and its impact on the contractor and the implementation of the project,” he said while praising the capacity and efficiency of the contracting national companies to implement various development projects.
It should be noted that the outsourcing sector in the Kingdom plays a pivotal role in economic development. The number of companies in the sector represents more than 176,000 companies, with an annual growth rate of around 3%, and contributes 5.5% to the gross domestic product (GDP) of the Kingdom and 10, 7% to non-oil GDP.
In 2021, the number of projects proposed by the state reached more than 540 projects, worth more than 120 billion dollars, diversifying several sectors, the most important of which are construction, energy and transport.