The Saudi Contractors Authority has called for the swift implementation of the proposed bankruptcy law, emphasizing that the law will significantly contribute to safeguarding and protecting rights in the event of a company’s collapse or bankruptcy, and ensure that companies do not evade fulfilling their obligations to employees, suppliers, and other rights holders as guaranteed by all regulations in the Kingdom.

In addition, Eng. Osama bin Hassan Al-Afaleq, Chairman of the Board of Directors of the Contractors Authority, called for empowering the Authority to fulfill its required role in regulating the contracting sector and to begin enforcing mandatory registration with it, as stipulated in its founding resolution. This will significantly contribute to helping regulate the sector and protect the rights of all parties involved, especially since the sector has long suffered from poor regulation and the entry of many who lack the necessary expertise and qualifications required of a contractor.

Al-Afaleq pointed out the need to implement a bankruptcy system, particularly in light of the suspension of operations by a number of major contracting companies, such as Saudi Oger, in addition to empowering the Authority to fulfill its intended role in regulating the Kingdom’s construction sector—which is the second-largest non-oil sector in the Kingdom and the one most closely linked to the projects and programs of the Kingdom’s Vision 2030.

Al-Afaleq emphasized that state support for the construction sector and contractors is crucial to achieving the goals of the Kingdom’s Vision 2030, given that most of the Vision’s programs are linked to the construction sector, which is the second-largest non-oil sector in the Kingdom.