Saudi Oger expected to file for bankruptcy: report

Saudi Oger, one of the kingdom’s largest contractors, is expected to declare bankruptcy in a bid to overcome its financial woes, local daily Saudi Gazette reported, citing an unnamed company source.

The Riyadh-based firm was reportedly unable to pay salaries and renew medical insurance for its 20,000 employees for the past eight months, which led a halt in medical insurance to affected workers.

“The problem is not only with medical insurance, but also with the end-of-service benefits. Some employees are entitled to more than SAR 500,000,” the source said.

The only way for Saudi Oger to get out of its commitment to pay dues is by filing for bankruptcy, said Adnan Khoja, member of the insurance committee at the Jeddah Chamber of Commerce and Industry (JCCI).

Earlier this month, Lebanese daily Al-Akhbar reported that Saudi Arabia’s government is in talks to buy out Saudi Oger, which is owned by the family of former Lebanese Prime Minister Saad Al-Hariri.

Talks between the government and Hariri are in their final stages, the report said, adding that the buyer would assume responsibility for all debts and financial obligations owed by the contractor.