More than 53% of Arab construction companies are cash-strapped
More than 53 per cent of Arab construction companies are facing challenges related to liquidity, the head of Union of Arab Contractors, Fahd Mohammed Al-Hammadi, said.
A reduction of government spending on infrastructure projects has exacerbated the situation, Al-Hammadi added.
He said the union, in cooperation with other organisations, has issued the results of many studies concerning the development of financing systems for contractors in the Arab world, compared with international experiences with the support of international banking institutions.
Based on the reports, the Arab construction sector is witnessing challenges and complexities without direct support from the government, while the construction sector faces the financial and economic burden of Arab states forcing in many construction companies to exit the market.
He stressed that the matter requires further discussion, cooperation and partnerships between construction companies in the Arab world to improve their ability to compete abroad.
