Dubai: Saudi Arabia is setting up a committee to handle the restructuring of debt owed by Saudi Oger, the construction company owned by the family of Lebanese Prime Minister Sa’ad Al Hariri, said two sources familiar with the matter. Authorities are keen to resolve the financial fallout from the company’s collapse after it was crippled by state spending cuts, mismanagement and corruption, leaving thousands of workers and banks out of pocket.
The business is now no longer operational and Saudi banks owed around 13 billion riyals (Dh12.7 billion, $3.5 billion) in debt have come under pressure from the regulator in recent quarters to provision for their exposure.
In recent weeks, the central bank has informed lenders that a committee will be formed to handle claims related to Saudi Oger, a source said. The construction sector has been hurt by government spending cuts on new projects and delayed payments spurred by low oil prices.