MCI, Defaming a Citizen and an Expat Condemned of Commercial Concealment in Riyadh

16 May 2019
The Ministry of Commerce and Investment has defamed the owner of a commercial establishment, selling mobile accessories in Riyadh after a judicial ruling condemning him for commercial concealment. It has been proved that the citizen has been enabling an expat of Asian nationality to practice commercial activity using the citizen's commercial registration and working for his own account.
A verdict has been issued by the Criminal Court in Riyadh, imposing a fine of SR 50,000 on the offender, in addition to the closure of the Est., liquidation of the trade activity, cancellation of the license, writing off the commercial registration and prohibiting the citizen of practicing the same trade activity, besides defamation by publishing the sentence in a local newspaper at the expense of the violator.
Upon inspecting the site located in Riyadh, MCI inspectors seized evidences proving that the citizen has enabled the expat to engage in an unauthorized business activity and work for his own account. Accordingly, the case was referred to the Public Prosecution and then to the judicial authority for taking the legal measures, in accordance with the Anti-Commercial Concealment Law.
The Ministry of Commerce and Investment calls on all citizens and residents in all regions of the Kingdom to report cases of commercial concealment through the Ministry's Consumer Call Center (1900) or through the application of a Commercial Violation Report, or via the Ministry's website. Notably, MCI is granting an award of up to 30% of the total sentenced fines after collection. The fine may reach one million riyals against each violator.

It is worth mentioning that the Royal Supreme Authority has approved recently the implementation of the recommendations of the National Program for Combating the Commercial Concealment, which involves ten government agencies. This program aims to address and combat commercial concealment in all sectors, besides developing relevant regulations and legislations, also stimulating e-commerce and using technical solutions. This program aims as well at regulating and organizing the financial transactions to eliminate transferring of money abroad, as well as enhancing development in the private sector, also creating attractive jobs for Saudis and encouraging them to invest in various trade activities, more over finding solutions to the problem of illegal ownership of foreigners in the private sector.

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Last Modified 19 May 2019