Six Measures Adopted by MCI for Combating the Commercial Concealment, Including Monitoring Sources of Funds

06 Mar 2017
​The Trade and Investment Combination has adopted six measures for combating the commercial concealment under the initiative of "National Program for Combating the Commercial Concealment", which is one of the Trade and Investment Combination initiatives for the National Transformation Program 2020, targeting the elimination of commercial cover-up, which is considered a cause for raising the level of unemployment and for spreading the commercial fraud.
This initiative is based on six key measures, as follows: First, monitoring the sources of funds through obliging the commercial facility to open a bank account. Second, stressing the importance of using bills for all trade transactions, this would reduce the foreign remittances. Third, providing accurate information about the violating business practices together with the remedial action (for each separate sector). Fourth, raising the level of services provided to the consumer. Fifth, coordinating and integrating the efforts for combating the commercial concealment among the government authorities. Sixth, the nationalization of jobs, besides providing fair competition in the business sector, so that the Saudi market may become an attractive environment for investors.
Meanwhile, MCI initiative includes as well the need for developing and updating the infrastructure of the sectors, such as creating a mechanism for funding, giving incentives, developing the small and medium enterprises and retail sector, besides supporting the franchise system. These measures would contribute to raise the growth level and to promote trade activities in various sectors, consequently would eliminate the phenomenon of commercial cover-up, in addition to creating job opportunities for citizens and providing better services and products at more competitive prices, and with higher transparency.
MCI has been cooperating and coordinating with a number of relevant government authorities on the development of non-cash transactions, as well as the development of human resources, also for finding job opportunities for Saudis in various sectors, besides creating job opportunities for women, further more resolving the current concealment cases, also organizing and addressing the ownership of non-Saudis.
Notably, combating commercial concealment will be done through several phases, starting with the retail sector, and then the contracting sector, since these two sectors represent the highest proportion of commercial concealment cases, and after that the other sectors. All efforts to be focused on supporting the investment, in various sectors, as well as enabling and increasing the local content, including the promotion of sales, also achieving the transparency of ownership, as well as creating new jobs.
It is worth mentioning that MCI had referred (450) cover-up cases to the Bureau of Investigation and Public Prosecution during 1437 AH, also MCI inspectors had inspected and checked 764 commercial facilities during the same year, while all cases had been referred to the competent authorities for taking the necessary legal measures against the violators.
The Ministry is seeking to eliminate the difficulties facing the statutory procedures for combating commercial concealment, such as the longtime of litigation, as well as failure to inform the Ministry about the verdicts taken by the concerned authorities. Meanwhile, MCI would like to confirm that its relevant department is following up all interrogation sessions and questioning related to pending issues.
Last Modified 25 Dec 2018