Saudi Oger, a major construction company that has faced financial difficulties in recent years, downed its shutters on Monday after almost four decades of existence in the Saudi market, said a report.

The company, with a paid up capital of SR750 million ($200 million), was unable to pay salaries to its employees, said the Saudi Gazette report.

The report quoted a source as saying that the National Electricity Company (NEC) has cut off power from the company's headquarters and offices in several areas of the kingdom.

The source also said the company had handed over three of its projects to others in an attempt to mitigate increasing financial pressures.

The source said files on the salaries of the Saudi and expatiate staff have been handed over to the Ministry of Labour and Social Development (MLSD).

He said the expatriate employees of the company have hired lawyers to follow up the case of delayed salaries and other benefits, the report added.

Earlier reports quoting the Labour Ministry said employees of the troubled construction company will be moved to other firms amid other reports that workers were planned to be laid off from July 31.

The ministry said there were 1,200 Saudis among a total of around 8,000 workers at the company, which is owned by the family of Lebanese Prime Minister Saad Al-Hariri and has built many huge infrastructure projects in the kingdom, from universities and roads to airports and hospitals.

A document described as an internal Saudi Oger memo and seen by Reuters notified employees that July 31 would be the last working day there, in light of "the circumstances that the company is going through".