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More than 440 cases of commercial concealment have been highlighted
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Authorities carry out 16,000 inspections to verify business compliance
Following the introduction of an anti-concealment law early this year, Saudi Arabia has stepped up its efforts to crack down on the shadow economy.
The new law, which seeks to ensure that foreign investors operating in the Kingdom are doing so under the correct commercial arrangements and with the relevant licenses in place, was introduced in March 2021.
More than 440 cases of commercial concealment have been referred to the Public Prosecution during the first half of this year by the Kingdom’s commerce ministry, local media reports said.
Some 16,000 inspections were carried out on businesses to verify their compliance, it has been pointed out.
The new legislation includes fines of as much as SR5 million ($1.3 million) and up to five years in prison for violators. It also rewards whistleblowers with up to 30 percent of any fine collected, while protecting their identity.
The government in March introduced an option for people in breach of the new law to make the necessary changes needed to become compliant. The grace period to make such changes expires on Aug. 23, 2021 by which time they are expected to either operate under the rule of the new law or face the legal consequences.
