National Program to Combat Commercial Concealment Reveals Cases and Clarifies Distinctions

Riyadh - The National Program to Combat Commercial Concealment has unveiled several cases that fall under the category of commercial concealment, while also providing clarity on the distinction between commercial concealment and covering up violations. The program aims to raise awareness about these practices and educate individuals about their legal implications.

The program explained that instances of commercial concealment include various scenarios. These include a Saudi citizen transferring ownership of a commercial establishment to a non-Saudi individual in exchange for monthly payments. It also encompasses situations where non-Saudis engage as partners in any commercial activity without obtaining the required foreign investment license. Additionally, it includes cases where non-Saudis operate in any form of commercial activity under the name of a Saudi citizen, such as brokerage or mediation. Furthermore, it covers instances where non-Saudis are involved in any type of commercial activity while being sponsored by individuals who typically sponsor domestic workers.

In addition, the program highlighted the difference between commercial cover-up and covering up violations. In a case involving commercial cover-up, an establishment is registered under the name of a Saudi citizen but managed by an employee who earns profits from its operations. On the other hand, covering up violations refers to an agreement where a Saudi citizen sponsors a non-Saudi individual in exchange for monthly payments without supervising their work activities.

The program emphasized that engaging in commercial concealment is considered a crime due to regulations granting exclusive rights for Saudi citizens to engage directly in commercial work. Granting this right to anyone else violates laws governing foreign investment licenses.

By revealing these cases and clarifying distinctions between different forms of concealment, the National Program aims to promote compliance with regulations and ensure transparency within business activities across Riyadh.