Saudi Arabia is repaying debts to contractors after long delays that squeezed the finances and hurt investor sentiment, according to unnamed sources. Payments have started to some major builders as well as companies outside the construction industry. Some companies were told that 30-40% of the outstanding dues will be paid before the end of the year, with the remainder to be settled in 2017. Saudi’s finance minister Ibrahim al-Assaf said that payments have been regularized and will rise in the coming months. A local daily said last month that the government had started paying dues to Saudi Binladin Group. A month ago Reuters reported that Saudi Bin Ladin Group (SBG) is asking for a second extension on an SAR817mn Islamic facility primarily owed by nine UAE banks. DIB reportedly led the facility while ENBD, Noor Bank and Ajman Bank are among the participants. The loan was used to fund the construction of the Grand Mosque in Mecca. SBG had SAR1.1bn of approved payments on work completed on the project up until December 2015, which the Saudi government is yet to pay. According to Reuters, SBG reportedly owes USD30bn in debt to local and international lenders. (Bloomberg, Reuters)