Saudi Arabia’s Anti-Commercial Concealment Program, known as Tasattur in Arabic, targets illegal business arrangements between Saudi citizens and foreign nationals. Understanding these violations is crucial for expats to avoid serious legal and financial penalties.
What is commercial concealment (Tasattur)?
Commercial concealment occurs when non-Saudis engage in business activities through illegal arrangements with Saudi citizens. The government actively monitors and prosecutes these violations to protect the integrity of the business environment.
Four main types of commercial concealment
Handing over commercial establishments
This violation occurs when a Saudi citizen transfers control of their business to a non-Saudi in exchange for monthly payments. The Saudi remains the legal owner on paper while the foreigner runs the actual operations.
Non-Saudis cannot become business partners without proper foreign investment licenses. Any partnership arrangement that bypasses official licensing requirements constitutes commercial concealment.
Operating under Saudi names
This includes situations where non-Saudis conduct business activities like brokerage or mediation using a Saudi citizen’s name or identity. The Saudi acts as a front while the foreigner manages the business.
Sponsorship violations
When individuals under personal sponsorship (such as domestic workers) engage in commercial activities, this violates their visa conditions and constitutes concealment.
Penalties for violations
The Saudi government imposes severe penalties for commercial concealment, including:
- Heavy financial fines
- Business closure
- Deportation for non-Saudis
- Legal prosecution for Saudi citizens involved
How to conduct business legally
Non-Saudis wanting to start businesses in Saudi Arabia should:
- Obtain proper foreign investment licenses
- Follow official procedures through SAGIA (Saudi Arabian General Investment Authority)
- Ensure all partnerships comply with foreign investment regulations
- Maintain proper visa status for business activities
Summary
Commercial concealment undermines Saudi Arabia’s business regulations and carries serious consequences. Expats should always ensure their business activities comply with official procedures and licensing requirements to avoid violations of the Anti-Concealment Program.