Saudi contractors suggest creation of contractor bank to support and finance projects
Posted on 5th August 2016
Some Saudi contractors have suggested the creation of a contractors' bank to support and finance projects in the kingdom, following a downturn in the construction sector.
Fahd Alhamedi, head of the contractors committee at the Riyadh Chamber of Commerce and Industry, was quoted by Arab News as saying that the current level of investment in the contracting sector is not proportional to the number of construction projects currently being implemented, according to Tradearabia news report.
He said there is a need to inject funds into the industry in order for the government projects to continue, the report quoted.
Following a decline in investments in the kingdom's construction and contracting industry, the total value of the sector is now estimated at just $680 billion. With fresh investments drying up, contractors say that up to 40 per cent of all government projects are currently stalled, the report said.
Alhamedi said before contractors take up a project, they now worry whether they would be able to pay their employees.
He said that the recession in the industry is due to the fact that banks are not financing the contracting sector.Back to all Construction News
Share this story: