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Construction workers in Saudi Arabia, heading an article on delayed wagesEER Middle East logo

Foreign gov’ts press Saudi Arabia on workers’ delayed wages

March 8, 2016

2 min read

Home | Insights | General | Foreign gov’ts press Saudi Arabia on workers’ delayed wages
Construction workers in Saudi Arabia, heading an article on delayed wages

Foreign governments are pressing authorities and executives in Saudi Arabia to ensure that local construction firms make delayed salary payments to thousands of workers, a sign of pressure on the kingdom’s economy due to low oil prices.

Since late last year, the Saudi government has responded to shrinking oil revenues by clamping down on state spending to curb a budget deficit running at about $100 billion annually.

This has squeezed construction firms in the kingdom; as they have received less money from the government, they have in some cases delayed paying wages to thousands of their foreign workers. Some employees have not been paid for months.

About 10 million people, largely from south Asia, southeast Asia and other parts of the Mideast, work in Saudi Arabia. Most of them do low-paid jobs in sectors which Saudis spurn, such as construction, domestic service and retailing.

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