Moroccan Workers Left Unpaid in Saudi Prince’s Tangier Palace Renovation: A Growing Trend?
At least 50 Moroccan companies and hundreds of workers are facing financial ruin after allegedly not being compensated for over $5 million worth of renovation work at a palace in Tangier owned by Saudi Prince Turki bin Mohammed bin Fahd bin Abdulaziz Al Saud. The situation, highlighted by Human Rights Watch, raises concerns about labor practices and financial responsibility within large-scale construction projects involving international contractors.
The Tangier Palace Dispute: A Detailed Look
The renovation project, contracted in 2023 to Saudi firms Modern Building Leaders (MBL) and Innovative Facility Management and Services (IFAS), involved numerous Moroccan subcontractors. Payments reportedly ceased in October 2024, leaving businesses struggling to pay their own employees, and suppliers. Several subcontractors have reportedly received partial payments in January, April, and May 2025, but these were insufficient to cover the outstanding debts.
The financial impact is severe. At least 11 Moroccan companies are reportedly on the brink of bankruptcy, and workers have been laid off. One worker, who worked on the palace for a year, stated he was laid off due to lack of funds and had to borrow money from friends. Subcontractors report being unable to cash guaranteed checks due to insufficient funds, leading to legal issues.
A Pattern of Non-Payment?
This isn’t an isolated incident. Reports from September 2025 indicated protests and sit-ins by Moroccan workers demanding over 12 million dirhams ($1,319,280) for work completed at the palace. A Spanish media outlet previously reported in May 2025 that two palaces were built in Tangier for King Salman and Crown Prince Mohammed bin Salman, with debts to Moroccan companies remaining unpaid.
Human Rights Watch research indicates a broader issue within Gulf states, including Saudi Arabia, where workers in lower levels of subcontracting chains are vulnerable to wage theft. The organization has documented numerous cases of alleged wage abuses by Saudi companies over the years.
The Blame Game and Lack of Transparency
Responsibility for the non-payment remains unclear. Palace representatives reportedly claim to have fully paid MBL and IFAS, while the Saudi companies claim they haven’t received payment. Attempts by Human Rights Watch to obtain clarification from the Prince’s office, IFAS, and MBL were unsuccessful.
An April 9th meeting between representatives of IFAS, MBL, Prince Turki’s office, and Moroccan subcontractors resulted in a commitment from IFAS to pay all remaining dues by April 30th. This commitment was not fulfilled. A subsequent email from IFAS representatives in June promised payments within three weeks, but those payments also never materialized.
The Human Rights Implications
The situation highlights the importance of adhering to the United Nations Guiding Principles on Business and Human Rights, which emphasize companies’ responsibility to avoid causing or contributing to human rights violations. This includes addressing unfair business practices, such as delayed or non-payments, that can lead to labor abuses. Companies are also expected to remediate any human rights impact they have caused.
FAQ
What is the total amount of unpaid work? At least US$5 million worth of renovation and maintenance work remains unpaid.
Which companies are involved? The main companies involved are Modern Building Leaders (MBL), Innovative Facility Management and Services (IFAS), and at least 50 Moroccan subcontractors.
Has the Saudi Prince responded to the allegations? Human Rights Watch has not received a response from the Office of Prince Turki.
What is being done to resolve the situation? Saudi and Moroccan authorities are urged to work together to ensure outstanding dues are paid in full.
What are the consequences for the Moroccan companies? At least 11 Moroccan companies are facing bankruptcy, and hundreds of workers have lost their livelihoods.
Did you grasp? Workers in subcontracting chains are particularly vulnerable to wage theft in Gulf states, according to Human Rights Watch.
Pro Tip: When engaging in international construction projects, thorough due diligence on all contractors and subcontractors is crucial to mitigate financial and legal risks.
This situation serves as a stark reminder of the potential risks associated with international construction projects and the importance of ensuring fair labor practices and financial accountability. Further investigation and resolution are needed to protect the rights of the affected workers and businesses.
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