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The instruction applies to ministries and government-controlled entities including Public Investment Fund (PIF), the kingdom’s nearly $1 trillion sovereign wealth fund, and many of its subsidiaries, the people said. The order was issued earlier this month and currently lasts until the end of June, the people said. The Financial Times reported Thursday that Saudi Arabia had stopped awarding new work to western consultants.
“The Ministry of Finance and the Saudi government have always looked to ensure all investments, including consultancy services, provide clear returns in line with the strategic objectives of Vision 2030,” a spokesperson for the Finance Ministry said in a statement.
The spokesperson disputed that payments were being delayed, saying invoices due “are paid within the contractual time frame,” adding that “year-to-date, more than 85% were made a couple of weeks before the due date, and 99.5% within the contractual timeframe.”
PIF didn’t immediately respond to a request for comment.
The freeze includes work on existing contracts and a halt on hiring consultants for new work, the people said. Some firms affected by the order have continued working despite uncertainty over payments, while others were instructed to finish short-term assignments before pausing new projects, the people said.
Some government bodies have sought exemptions for essential contracts, the people said.
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