Saudi Oger said to close down, lay off staff by June end

Saudi Arabia’s labor ministry will transfer employees of financially-troubled Saudi Oger to other firms, amid reports that the construction firm has decided to lay off its staff and shut down offices by the end of this month, Reuters reported, citing unnamed sources familiar with the matter.

As many as 8,000 employees are working for the giant construction group, including 1,200 Saudis, and the ministry is aiming to transfer about 600 Saudis to other companies.

The Human Resources Development Fund (HADAF) was also ordered to find jobs for the remaining Saudi employees. Meanwhile, a total of 6,000 expatriates will be moved to other companies.

According to an AFP report, the company’s last day of existence would be June 30.

Saudi Oger, which is owned by the family of Lebanese Prime Minister Saad Al-Hariri, has struggled to pay worker wages amid a wider slowdown in the Saudi construction sector, following the plunge in oil prices in mid-2014.

More than 200 French citizens employed by Saudi Oger received in September the equivalent of nine months' salary from the Saudi government.

But thousands of employees from Pakistan, Philippines and India returned home without being paid.

The Kingdom issued exit visas and flew many workers home, helping them to file claims in court against Saudi Oger.