Western research and consultancy groups specialising in the monitoring of contracts involving foreign construction companies operating in Saudi Arabia have estimated that the Kingdom will be required to pay at least US$16 billion in penalties and compensation linked to cancelled projects and terminated contracts.

According to these assessments, the final figure could rise further depending on the nature of future settlements reached between Saudi authorities and affected contractors. However, the US$16 billion estimate is regarded as the minimum likely cost, assuming that some contractors agree to waive part of their claims.

Saudi Arabia has cancelled dozens of projects in recent years, leading to legal disputes with construction firms that incurred substantial financial losses as a result of the cancellations.

Among the foreign companies whose construction contracts were reportedly cancelled are:

▪️ Webuild

▪️ Eversendai

▪️ Hyundai Engineering & Construction

▪️ Samsung C&T

▪️ Archirodon

The disputes stem from project suspensions, reductions and cancellations that have affected a number of major developments associated with the Kingdom’s broader economic transformation plans.