Debt-ridden construction giant Saudi Oger will turn off the lights on its business and exit the Saudi market as of today, July 31, Okaz newspaper reported on Monday, citing an internal document by the company.
State-owned utility Saudi Electricity Co. (SEC) will cut power to the company, the daily added, citing an unnamed source close to the matter.
The construction firm has recently been working on only three projects. They were a 15-year contract to operate and maintain King Abdullah University of Science and Technology (KAUST), the construction of King Salman’s palace in Tangier and another project in Mina region, east of Makkah.
The projects have been awarded to other companies.
Saudi Arabia’s labor ministry said it is uncertain if workers’ dues would be cleared as the company has no assets, the source added.
No date was set for paying the overdue salaries.
Last month, the labor ministry said it was working on moving employees of the troubled construction company to other firms, Argaam earlier reported.
As many as 8,000 employees are working for the giant construction group, including 1,200 Saudis, and the ministry was aiming to transfer about 600 Saudis to other companies. Meanwhile, a total of 6,000 expatriates will be moved to other companies.
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