SAUDI ARABIA

Expat partnership without foreign investment license is 'cover-up'

January 15, 2024

Saudi Gazette report

RIYADH — The National Program to Combat Commercial Concealment revealed a number of cases that fall under commercial concealment or cover-up (tasattur). It also clarified the difference between commercial cover-up and the violation of covering up of illegal workers.

The program explained that cases of tasattur include a Saudi citizen handing over a commercial establishment to a non-Saudi in exchange for a fixed monthly sum; a non-Saudi working as a partner in any commercial activity without a foreign investment license; a non-Saudi working in any commercial activity in the name of a Saudi citizen such as brokerage or mediation; and empowering a non-Saudi, such as a domestic worker, to practice any commercial activity.

The program highlighted the difference between commercial cover-up and cover-up of violating workers. The commercial cover-up includes a foreign worker managing an establishment, which is registered in the name of a Saudi citizen and earns profits, while the arrangement to cover-up workers is that a Saudi citizen sponsors a non-Saudi person in exchange for fixed a monthly sum without supervising his work.

The program stressed that commercial concealment is a crime because the state granted the right to commercial work to Saudi citizens and not anyone else. It defined commercial concealment as a citizen enabling a non-Saudi to practice any commercial activity without obtaining a foreign investment license.


January 15, 2024
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