239 suspected cases of commercial cover-up detected last month

According to the Saudi Gazette, the National Program to Combat Commercial Concealment has intensified its regulatory efforts, conducting 5,161 inspection tours across the Kingdom during the month of August. These operations are part of a broader, ongoing government initiative to identify and eliminate instances of commercial concealment, a practice where non-citizens operate businesses under the name of a Saudi national in violation of local regulations.

The recent inspections resulted in the detection of 239 suspected cases of commercial concealment. The individuals and entities involved have been referred to the relevant judicial authorities for further investigation and the potential application of deterrent penalties. Under the Kingdom’s Anti-Concealment Law, those found guilty face severe consequences, including prison sentences of up to five years and fines reaching as high as SR5 million.

Beyond fines and incarceration, the law mandates significant subsidiary penalties to ensure compliance and market integrity. These measures include the permanent closure of the establishment, the liquidation of business activities, the cancellation of commercial registrations, and the seizure of illicit funds. Furthermore, the authorities may enforce the collection of all outstanding zakat, fees, and taxes, while also publicizing the violations. Non-Saudi nationals found to be involved in these schemes face deportation and a permanent ban from returning to the Kingdom for employment purposes.