The fall in oil prices forced the Saudi company to hold salaries

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Падение цен на нефть вынудило саудовские компании задерживать зарплаты

Construction company Saudi Arabia delayed the payment of salaries to employees. It is reported Rambler News Service, citing Reuters.

The Ministry of labor issued an official statement saying that the staff is one of the “major patterns” complained of unpaid salaries for several months. The Ministry did not specify the name of the company, however sources told Reuters that it is working in the construction sector. In addition, the interlocutors of the Agency noted that at least several major Saudi developers are experiencing similar difficulties.

The government cuts costs due to the fall in oil prices, and therefore it suffers regardless of the investment and construction sphere.

“The pace of implementation of a number of existing projects has slowed, and the project, which would have taken six months, now may require more time,” said analyst at EFG-Hermes Murad Ansari.

The share of construction sector in GDP of Saudi Arabia is about 7 percent.

Earlier, on 9 February, the International energy Agency (IEA) downgraded its forecast for global oil demand in 2016 by 0.1 million barrels per day — up to 95.6 million barrels.

Saudi Arabia was produced in January 10,21 million barrels per day, increasing production by 70 thousand barrels.

For the year from January 2015 Brent oil fell by 37 percent, from 52 to 33 dollars per barrel. Pressure on the quotes have the slowdown in China, which is one of the largest consumers of hydrocarbons on the planet, the politics of OPEC to increase production, as well as the removal of international sanctions against Iran. In the energy market there is a significant excess of supply over demand.

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