HRW: Moroccan firms, workers unpaid over Saudi prince’s Tangier palace renovations

At least 50 Moroccan companies and hundreds of workers have not been paid for renovation and maintenance work carried out at a palace in Tangier owned by a Saudi prince, according to Human Rights Watch, which says the unpaid bills total at least $5 million.

The rights group said the companies were hired as subcontractors for work overseen by two Saudi firms — Modern Building Leaders (MBL) and Innovative Facility Management and Services (IFAS) — contracted in 2023 by the office of Prince Turki bin Mohammed bin Fahd bin Abdulaziz Al Saud. The prince is a minister of state and a member of Saudi Arabia’s Council of Ministers.

Moroccan business representatives told Human Rights Watch that payments for labor, materials and services largely stopped after October 2024. 

While some partial payments were reportedly made in January, April and May 2025, subcontractors say significant sums remain outstanding.

Human Rights Watch said it reviewed documents and correspondence related to the project and interviewed company representatives and workers who requested anonymity for fear of retaliation. 

The organization said it could not independently verify the full amount allegedly owed.

Several subcontractors told the group they are now facing bankruptcy. Four companies are each owed up to $75,000, three are owed between $75,000 and $150,000, and four others say they are owed more than $150,000.

“At least 11 companies are on the verge of collapse,” the group said, adding that hundreds of workers have lost their livelihoods. 

Four companies alone have laid off at least 113 employees, according to interviews cited in the report.

One worker said he was dismissed after a year on the project because “there is no money.” Another said he is owed four months’ salary and has struggled to cover basic expenses, including rent and food.

Some subcontractors said they had issued guaranteed checks to suppliers that later bounced due to insufficient funds, leading to police summons. 

Others said they have sold personal assets to pay workers and creditors.

It remains unclear who bears responsibility for the nonpayment. Subcontractors said palace representatives told them the Saudi firms had been fully paid, while the Saudi companies allegedly said they were still awaiting funds. 

Human Rights Watch said it wrote to Prince Turki’s office and the Saudi contractors in December but had not received responses.

In April, IFAS reportedly committed during a meeting to settle all outstanding dues by the end of that month. 

In a June 27 letter reviewed by the group, IFAS representatives said payments would begin within three weeks. Subcontractors say those payments never materialized.

The affected companies have staged peaceful protests and sit-ins in Tangier in recent months.

Human Rights Watch called on Saudi and Moroccan authorities to work together to ensure that outstanding payments are made in full. 

It said that under U.N. guiding principles on business and human rights, companies have a responsibility to avoid practices that contribute to labor abuses, including delayed or unpaid wages.

“Hundreds of workers in Morocco and their families are in financial distress because they aren’t being paid what they are owed,” said Michael Page, deputy Middle East and North Africa director at Human Rights Watch.