Saudi Binladin Group 'pays out $26.6m of delayed wages'

Seven Saudi banks reportedly put up the money as company battles losses

Workers at ailing construction giant Saudi Binladin Group have reportedly been paid a total of SR100 million ($26.6 million) of dues amid allegations some employees have not been paid for five months.

The sum reportedly paid this week represents one month’s salary each, and has been paid by seven Saudi Arabian banks, according to local media.

Saudi Gazette, quoting Arabic daily Al Watan, said on Wednesday that the money was paid to expats and Saudi national staff working in various divisions of the group.

Saudi Binladin Group is believed to be struggling with billions of dollars of losses since the Makkah crane crash last year that killed more than 100 people and injured hundreds of others.

It has reportedly made more than 80,000 expat workers redundant, but has paid overdue salaries to around 35,000 workers.  

At the beginning of the month, the group asked its circa 17,000 Saudi national staff to either resign or wait for delayed payments plus a compensation package equivalent to two months’ salary

It has since been reported that the group has promised to settle dues by June 20.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
A natural move: How Dubai Chamber is strengthening its ties in Latin America

A natural move: How Dubai Chamber is strengthening its ties in Latin America

With vast resources and more than half-a-billion people, the...

If Saudi future's so bright, why can't these banks find buyers?

If Saudi future's so bright, why can't these banks find buyers?

No big-name global banks eager to buy stakes in Saudi banks,...

GCC economies must live up to their potential to thrive: PwC chairman

GCC economies must live up to their potential to thrive: PwC chairman

No matter how much revenue VAT generates, it does not negate...

Most Discussed
sponsoredTracking