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HomeMiddle EastSaudi finance minister says efficiency initiative so far saves $21bn

Saudi finance minister says efficiency initiative so far saves $21bn

Saudi Finance Minister Mohammed al-Jadaan said a government efficiency office created last year to review state projects has saved the kingdom 80 billion riyals ($21 billion) on costs, according to the ministry’s official Twitter account.

Jadaan expects increased savings this year and in future years to have a positive impact on the kingdom’s finances and the ministry has set up a mechanism to reimburse contractors within 60 days, as promised in December, he said.

Last month, it was reported that Saudi Arabia was working with PricewaterhouseCoopers on plans to cancel about $20 billion of projects as the Gulf kingdom battle with lower revenues amid lower oil prices.

Bloomberg reported that Ministry of Economy and Planning has appointed PwC to review $69 billion of government contracts with a view to cutting about a third of them, citing two people familiar with the matter.

It said that projects under review include contracts awarded by the ministries of housing, transport, health and education.

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