Saudi Arabia’s government is discussing plans to take over construction company Saudi Oger, according to Lebanon’s daily newspaper Al-Akhbar.

Oger, which is owned by the family of Lebanon’s former prime minister Saad Hariri, has been struggling amid a downturn in government spending and payment delays.

The newspaper added that the buyer would take over all debts and financial obligations of Saudi Oger.

The decline in oil prices has severely impacted Saudi Arabia’s construction market. There were $4.5bn of awards in Saudi Arabia during the first half of this year, down 77 per cent on the $19.9bn awarded in the first half of 2015.

Many contractors int he kingdom have come under immense pressure amid payment delays, which has resulted in the laying off of thousands of employees. Cash flow has been a major issue since the government decided to halt payments on many projects earlier this year. Project activity and contract awards have also declined in the kingdom

Saudi Binladin Group (SBG) and Saudi Oger, are among the hardest hit by the current cash flow problem. SBG has laid off approximately 70,000 of its 200,000 workers, with local media suggesting Oger has let go up to 30,000 employees.