Saudi Economic Collapse Leaves 16,000 Foreign Workers Abandoned In Labor Camps | Zero Hedge

Sinking oil prices and a full blown liquidity crisis has brought the Saudi Arabian economy to screeching halt, a topic we’ve explored on various occasions.  The Saudi construction industry has been among the hardest hit as government building contracts have disappeared and bank financing has dried up (something we discussed in a post entitled “Saudi Arabia Admits To A Full-Blown Liquidity Crisis: Will Pay Government Contractors With IOUs, Debt”). We got dramatic confirmation of this for the first time in late April when the BinLadin Group, one of Saudi Arabia’s biggest firms and among the Middle East’s largest builders, whose total workforce is around 200,000, announced it had just fired a quarter of its total staff amid a major operational restructuring as Saudi government spending cuts slammed the company’s primary source of revenue.Since then it’s only gotten worse.

As Bloomberg reports, construction contracts shrank by 65% YoY in 2Q16 according to Jeddah-based National Commercial Bank.

Source: Saudi Economic Collapse Leaves 16,000 Foreign Workers Abandoned In Labor Camps | Zero Hedge

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