Saudi owes billions to foreign workers and private firms

Saudi Arabia has admitted to owing billions of dollars to both private firms and foreign workers after the collapse of oil revenues, the kingdom’s new finance minister announced.

“I don’t recall the exact amount now but its billions of dollars,” Mohammed Al Jadaan told reporters yesterday. He was appointed as the new finance minister at the end of last month and has been hailed as someone who could reform the ministry and the Saudi economy.

According to Saudi Press Agency, payments were delayed due to “the sharp decline in oil revenue and the measures taken by the kingdom to reduce spending on a number of projects.” They reported this statement after a meeting in the Council of Economic Affairs and Development.

It was also a necessary measure which was “taken by the kingdom to reduce spending on a number of projects,” they added.

However, Saudi Arabia’s Council of Economic Affairs and Development, which is led by the powerful Deputy Crown Prince Mohammed Bin Salman, said earlier this week that Saudi Arabia would pay the outstanding amount by next month. He did not explain how this would be done.