Saudi Arabia owes billions of dollars to private construction firms and thousands of workers have gone unpaid for months.
“I don’t recall the exact amount now but its billions of dollars,” Saudi Arabia's new Finance Minister Mohammed Aljadaan said this week, according to The Guardian.
“The ministry is now every day seeking to make thousands of payment orders."
Thousands of low-paid foreign workers in the construction sector have been struggling significantly without their wages. But the kingdom plans to repay all its debts by next month, according to the Saudi Press Agency.
"[The Council of Economic Affairs and Development] came up with a package of solutions and procedures to settle the dues that met the requirements of spending," SPA reported. It added that solutions will be implemented and completed by December.
This month, it was also revealed that the kingdom would be cutting some $266.7 billion in construction projects.
Debts have mounted and construction in the kingdom has slowed significantly due to falling oil prices. Two years ago, the price stood at more than $110 per barrel of crude oil and has fallen to under $50 today.
Prices have slumped mainly as a result of Saudi Arabia – the world's biggest oil exporter – over-producing and flooding the global market with oil in hopes of competing with the United States' shale gas boom. The kingdom's economy depends mainly on oil and the falling prices have hit hard, with a budget deficit of $87 billion projected for 2016.
In response, the kingdom has taken drastic measures such as cutting subsidies and reducing the salaries of ministers and Shura council members. Last month, Saudi Arabia's deputy economy minister said the kingdom would go bankrupt in three to four years if reforms are not followed.
The kingdom also sold $17.5 billion in debt last month, in what was hailed as largest-ever bond sale from an emerging market. The sale was said to be a major success for the Saudi economy, as it attracted investor interest totalling $67 billion, nearly four times the amount of the sale.