MCI, 290 Commercial Concealment Cases had been Detected and Referred to the Bureau of Investigation and Public Prosecution Authority over the Past Year

27 Oct 2015
MCI Confirms Taking Stern Measures against Violators, who would be Legally Accountable

Ministry of Commerce and Industry announced the detection of 290 cases in violation of the provisions of Anti-Commercial Concealment Law, over the past year 1436 AH, which had been referred to the Bureau of Investigation and Public Prosecution Authority. This is in accordance with the Article Two of the Anti-Commercial Concealment Law, issued by the Royal Decree No. M / 22, dated 04 /0 5/1425 AH. The said authority is concerned with the investigation and prosecution of any violation of the law, and then the case would be referred to the Bureau of Grievances, to issue the final verdict. MCI pointed out that, such cases included various business activities, mostly contracting and retail business.

According to MCI statistics, the highest number of cases in violation was in Makkah (83 cases), followed by the Eastern Region (58 cases), and then Riyadh (47 cases).

MCI would like to emphasize that it will continue its inspection campaigns to combat the Commercial concealment, and to respond to the reports and notifications, received from government agencies, individuals and residents, promising that it would take stern measures against the violators.  

This step came after the Ministry had defamed some parties, who violated the Rules and Regulation of concealment law during the last period. Enforceable verdicts had been issued by the Bureau of Grievances, with penalties that may reach up to two years' imprisonment and a fine of up to one million riyals for every violator, while the non-Saudis would be deported from the Kingdom.

Other ancillary penalties would be imposed by MCI, including ceasing and liquidating the trade activity, writing off the Commercial Registration and the prevention of practicing the same business for up to five years.

MCI gives its warning to all companies, institutions and individuals to avoid cooperating with the violators of the Rules and Regulation in the Kingdom.  Otherwise, they would be accountable and subject to legal penalties. MCI aims to reduce the phenomenon of commercial concealment, and to create regular and free of irregularities trading environment and to enable the citizens of practicing business safely.

The commercial concealment is defined as the non-Saudi practicing business for his own account, with the help of a Saudi citizen or a foreign investor, whether through using the Saudi name, his license or his Commercial Registration, or in any other way. The first article of the Anti-Commercial Concealment Law provided that the non-Saudi is not allowed, at any event, to exercise or invest in any activity, he is not authorized to do, as per the Foreign Investment Law or other Rules, Regulations and decisions. 

Through the application of this system, every citizen enables the non-Saudi of investing in any activity, he is prohibited to practice, would be treated under the concealment law, whether through using the Saudi name, his trade license or his CR, or in any other way.

Last Modified 26 Dec 2018