At least 50 Moroccan companies lack roughly $5 million in compensation for labor, materials, and services tied to renovation and maintenance work on the Saudi prince’s palace in Tangier, Human Rights Watch (HRW) said Thursday.

The rights group stated, “Moroccan company representatives said that their efforts to get compensation have been futile despite repeated assurances by Saudi companies and palace representatives that they will provide payment. It remains unclear which entities or companies are responsible for nonpayment.”

The practical effects and results of the non-payment for services have been serious and detrimental to the livelihood of many Moroccans. The report confirmed that at least 11 Moroccan companies face bankruptcy, and hundreds of workers have lost their jobs and cannot provide for their families.

HRW stressed the importance and necessity of both Moroccan and Saudi authorities working together to ensure any outstanding dues are paid in full. Michael Page, the deputy Middle East and North Africa director at HRW, noted that “[h]undreds of workers in Morocco and their families are in financial distress because they aren’t being paid what they are owed.” He added: 

It is unconscionable for Saudi companies overseeing a luxury palace project to drive Moroccan businesses and their workers to the verge of economic ruin. The complete disregard for the rights of hundreds of workers to be paid for their work, including through unfair contracting practices, should be urgently rectified.

According to the Global Arbitration Review, “Non-payment or late payment claims against the employer are a common reality on international construction projects,” and payment disputes can cause “significant adverse impacts.” The review stated that “[w]hile contractors may price their bids to ensure they can sustain some degree of late payment, this buffer can easily be depleted if the employer withholds or delays payment for extended periods.” This has been the case for the Moroccan employees who face added difficulties in obtaining payment after not being paid for over 16 months.

In November 2025, Amnesty International issued a report detailing alleged human rights abuses faced by migrant workers during the construction of the Riyadh Metro Project in Saudi Arabia. Amnesty International noted the low wages the workers received, with some individuals earning less than $2 per hour. The rights group called on the country to reform its migrant worker system and better protect individuals from abuse.