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Noose tightened on cover-up businesses
Published in The Saudi Gazette on 13 - 05 - 2014


Saudi Gazette report
JEDDAH – The Council of Ministers on Monday approved a series of measures aimed at further tightening noose on the illegal cover-up business sector dominated by foreigners. The weekly session of the Cabinet was chaired by Crown Prince Salman Bin Abdulaziz, deputy premier and minister of defense, at Al-Salam Palace here.
Minister of Culture and Information Dr. Abdulaziz Khoja said Cabinet reviewed a report presented by the Ministry of Interior and decided to supply the Ministry of Commerce and Industry with more personnel and funding to fight cover-up business activities.
The government agencies, which are responsible for issuing commercial licenses, have been tasked with intensifying inspection campaign and report to the Ministry of Commerce and Industry on the illegal practices, Dr. Khoja said in a statement to the Saudi Press Agency.
The Cabinet directed the Ministry of Social Affairs to carry out studies about the establishment of consumer cooperative societies and expand them. The ministries of interior and labor have been instructed to continue the process to Saudize businesses and professions.
Cover up business or tasattur involves running business illegally by expatriates with the connivance of Saudi nationals. These businesses are estimated to be worth more than SR230 billion, according to a report published in 2013. Around 37 percent of illegal businesses were in the contracting and construction sector, 13 percent in food and consumer goods, 3.5 percent in general trade and more than 14 in other trades and professions, the report pointed out.
Last year, an official at King Abdulaziz University in Jeddah noted that about 30 percent of expatriates are engaged in cover-up businesses. The official estimated the total value of tasattur in the Kingdom at SR237 billion or 17 percent of the gross domestic product.
After reviewing the report submitted by the Minister of Commerce and Industry, who is also Chairman of Real Estate Contributions Committee, the Cabinet approved a number of procedures, including amendments in some paragraphs in the committee's working mechanism. It also directed the committee to accelerate the liquidation of all real estate contributions in accordance with its working mechanism and the relevant royal orders.
Dr. Khoja said the Cabinet denounced continuing excesses and excavation works in the vicinity of Al-Aqsa Mosque carried out by the Israeli occupation authorities which put obstacles on the entry of worshipers and prevent them from exercising their legitimate right to worship.
“The Kingdom holds Israel fully responsible for the deterioration of the situation in Jerusalem and any negative consequences resulting from the excesses by the occupation forces and settlers.”


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