People walk past vehicles belonging to billionaire Maan al-Sanea and his company as they are auctioned by Saudi authorities in Dammam
Thomson Reuters




By Marwa Rashad

DAMMAM, Saudi Arabia (Reuters) - Thousands of people attended the first day of an auction of vehicles owned by indebted Saudi Arabian tycoon Maan al-Sanea and his company, a sale which officials say will go towards repaying about 18 billion riyals ($4.8 billion) owed to creditors.

Authorities say the auction, the subject of huge interest in the Eastern Province where his business is based, reflects their focus on improving corporate governance and by extension Crown Prince Mohammed bin Salman's commitment to economic reforms.

Creditors ranging from unpaid workers to local and international banks hope the process, which at a later stage will include sale of bigger assets such as property, will lead to repayment of at least part of their debt.

The businessman, Direct FLT Training ranked in 2007 by Forbes as one of the world's 100 richest people, was detained by authorities late last year for unpaid debt dating back to 2009 when his company, Saad Group, defaulted on payments in what was Saudi Arabia's biggest financial meltdown.