The Contractors Authority presents 13 initiatives to solve the financial dilemma of small enterprises

The Contractors Authority presents 13 initiatives to solve the financial dilemma of small enterprises

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The Saudi Contractors Authority has revealed 13 initiatives to solve the problem of financing the sector, stressing that the initiatives are under consideration by a specialized committee of the Ministry of Finance before being submitted to the concerned authorities for approval. He pointed out that the initiatives involve effective financing solutions for small enterprises that exceed 90% .

He said m. Chairman of the Board of Directors of the Saudi Contractors Authority during his meeting yesterday with representatives of the construction sector at the headquarters of Al-Sharqiya Chamber. The initiatives are a study conducted by international consulting offices to address the problem of financing in the sector.

He pointed out that 4% of the companies operating in the sector are classified, 96% lack classification, and that the Commission is currently communicating with the concerned committees of the Ministry of Municipal and Rural Affairs to achieve a better classification of contractors.

He pointed out that the Authority intends to adopt model contracts for all contracting activities to ensure the rights of the contractor and the beneficiary, stressing that many of the problems that have emerged in the sector due to lack of clarity of contracts or lack thereof.

He added that the Authority has developed many initiatives for the development of the sector during the past three years because the Authority is difficult in any development happening in the sector, pledging that the next three years will be a period of achievements for the Commission after completing the completion of the internal system, stressing that the Authority is in the process of providing free financial consultations or fees Symbolic finance for small and micro enterprises.

As for the faltering of the projects, he explained that the TRA is in contact with the national content unit to launch several initiatives to revive the sector and solve the problem of bad projects, adding that stumbling may stop if there is a sound regulatory environment.

In turn, Thabit Al-Sweid, Secretary General of the Saudi Commission for Contracting, said that the Authority is servicing the sector through six fields of work (mining services, waste treatment, construction of buildings, specialized construction, building services, civil engineering), estimating the number of establishments operating in the sector is 200 thousand (94% of them are Saudi contractors), indicating that the small and micro enterprises represent 96% of the size of the sector, which accommodates about 4 million workers, of which 550-600 thousand Saudi workers make up 13% of the employment in the sector .

He said that the challenges facing the sector are different. With government or government-owned entities, the sector is suffering from the lack of quality procurement, the absence of contracts for neutrality, the lack of sufficient expertise in these entities, delays in extracting subcontractors' extracts, and delays in disbursement of receivables, Some systems.

With municipalities, he said, the sector is facing time-consuming and difficult licensing and approval procedures. With suppliers, the contractor faces a problem with frequent price changes.

He explained that the Authority works through four activities, namely, contractors' licenses, development, classification, and attracting the latest innovations, noting that the Authority provides contractors with a range of services, as well as supporting the sector and solving problems and upgrading its performance to serve development.

He added that the Authority in order to achieve the necessary funding for its activities addressed 50 entities to activate the guidance of the Council of Ministers not to contract only with the contractors participating in the membership of the Commission, stressing the interaction of 40 parties with mandatory registration, and the Commission obtained financial facilities from a local bank worth 15 million riyals.

He confirmed the launch of the Mazaya program for all contracting companies to reduce operating costs. It contracted with 100 companies to offer contractors such as issuing a special insurance policy for contractors and obtaining preferential prices in many services such as airfares, hotels,

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Source: Al-Riyadh Newspaper

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