MCI, Defaming an Expat Convicted of Commercial Concealment by Running a Restaurant for his own Account in Sakaka, Northern Region

27 Feb 2019

The Ministry of Commerce and Investment has defamed an Expat of Jordanian Nationality after a judicial ruling condemning him for committing the crime of commercial concealment. The Expat was found guilty of engaging in unauthorized business activity and by investing in trade activity, he is not allowed to invest in it, and by working for his own account in a restaurant in Sakaka.​

The sentence issued by the Criminal Court in Sakaka imposed three-month imprisonment penalty on the Expat, a fine, closing the facility, liquidation of the trade activity, cancellation of the license, writing off the CR, deporting the Expat  from the Kingdom after the execution of the sentence, and not to be allowed to return for work, besides defamation by publishing the sentence in a local newspaper at his expense.
In details, MCI received a tip about a suspected commercial concealment case at a restaurant in the province of Sakaka. Evidences showed that the expat had rented the site and he had been paying all relevant expenses, such as buying materials and paying the labors salaries and accommodation, paying as well the bills, besides transferring his profits abroad. Accordingly, the case was referred to the judicial authorities for taking the legal measures, in accordance with the Anti-Commercial Fraud 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 approved earlier this week to implement 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 28 Mar 2019