MCI, Defaming a Citizen and an Expat Convicted of the Crime of Commercial Concealment in the Field of Contracting in Rafa'a

29 Mar 2019


The Ministry of Commerce and Investment has defamed a citizen and an expat of Syrian nationality, following a judicial ruling condemning them for commercial concealment. It has been proved that the citizen enables the expat to practice commercial activity using the citizen's commercial registration and working for his own account in the field of contracting activity in Rafha'a Governorate, Northern Border.
A verdict was issued by the Criminal Court in Arar, imposing a fine on the violators, three-month imprisonment for the citizen and two-month imprisonment for the expat, as well as the closure of the establishment, liquidation of its activity, cancellation of the license, writing off the commercial registration, deporting the expat from the Kingdom after the execution of the sentence, and not o be allowed to return for work, besides defamation by publishing the sentence in a local newspaper at the expense of the violators.
In details, MCI received a tip about a suspected case of commercial concealment at an Est. in Rafha'a engaged in general contracting, maintenance and operation activities. Upon carrying out the necessary investigation, it has been proved that the expat is running the Est. for his own account. He is executing projects, collecting revenues, paying salaries and doing large financial transactions that do not match his salary and profession as a civil engineer. 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.

Last Modified 29 Mar 2019