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900 cases of tasattur reported to BIP in 2015
Published in The Saudi Gazette on 06 - 03 - 2016

Over 900 instances of tasattur operations (Saudis allowing foreign residents to run businesses in their name in return for a fixed fee) were transferred to the Bureau of Investigation and Public Prosecution last year, according to the Ministry of Commerce.
A number of experts said this was a very small number compared to the size of last year's transfers, which exceeded investments worth SR150 billion. They have called for a national program to rebuild the legislative system for business licensing and tighter sanctions for cover-ups.
"We see cover-ups in all aspects and sectors, whether economic, commercial, industrial or handicraft and even consulting. We need a national program led by the Ministry of Interior in cooperation with the ministries of Commerce and Industry, Health, municipalities, media and the investment authority to restructure the system of licensing business operations. It needs to be re-developed and improved," said Majid Garoub, a lawyer.
"Yes, we need foreign expertise and skilled manpower, whether in medium or large industries such as car plants, or in small operations such as restaurants and plumbing, carpently and blacksmith shops, but all of them must operate according to clear laws that make access easy for both foreigners and Saudis alike. We also need stricter cover-up penalties — financially, physically and economically," he said.
Economic and financial expert Sami Al-Nowaiser believes that remittances by expatriates increased significantly after the correction movement in employment in the Kingdom in 2012, and that the correction campaign in fact had pros and cons for the national economy.
Al-Nowaiser said foreign remittances exceeded SR150 billion, ranking the Kingdom second place globally in terms of the volume of foreign remittances.
He attributed widespread cover-up practices to Saudi business families deserting certain fields after the oil boom, in addition to increased income for employees in governmental sectors.
Director General of Information in the Ministry of Labor Khalid Aba Al-Khail insisted taht the relevant ministerial decisions and ongoing inspection campaigns, as well as Saudization activities, were still continuing.


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