Saudi citizen and Yemeni resident convicted in perfume trade concealment case in Riyadh
RIYADH — The Ministry of Commerce has publicly named and shamed a Saudi citizen and a Yemeni resident for engaging in a commercial concealment crime involving the trade of perfumes and cosmetics in Riyadh.
Investigations revealed that the Saudi citizen enabled the Yemeni resident to conduct business activities without obtaining a foreign investment license.
Authorities seized large sums of money in seven foreign currencies, gold bars, and other evidence proving the resident was operating a commercial enterprise for his own benefit.
The resident acted as the de facto owner of the business and engaged in financial transactions far exceeding the scope of his official job as a sales representative.
He admitted receiving 20% of the annual net profits in exchange for the Saudi sponsor's concealment.
The final ruling, issued by the Criminal Court in Riyadh, includes a joint fine of SR60,000, revocation of the commercial registration, cancellation of the business license, liquidation of the enterprise, and collection of due taxes, zakat, and fees.
Both individuals have been banned from commercial activity, while the Yemeni national is to be deported and permanently barred from working in the Kingdom.
The Anti-Concealment Law stipulates penalties of up to five years in prison, fines of up to SR5 million, and confiscation of illicit assets following final judicial rulings.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Saudi Gazette
6 hours ago
- Saudi Gazette
Nazaha: 30 government employees arrested for facilitating unauthorized pilgrims to perform Hajj
Saudi Gazette report RIYADH — A total of 30 government employees have been arrested for facilitating unauthorized pilgrims to perform Hajj. The arrests were made in one of the corruption cases initiated by the Saudi Oversight and Anti-Corruption Authority (Nazaha). The spokesperson of Nazaha stated that the authority has initiated a number of criminal cases over the past period, and legal procedures are underway against the perpetrators. The authority, in cooperation with the Ministry of Interior, arrested 30 government employees for facilitating Saudi citizens and residents to perform Hajj without a permit by allowing them to pass through the security checkpoints. Those arrested include 26 employees from the Ministry of Interior, two employees from the Ministry of Defense, and one employee each from the Ministry of Islamic Affairs, Call, and Guidance and Oversight and Anti-Corruption Authority. A former university employee was arrested for embezzling SR100,800 from the university's account during his tenure. In another case, a non-commissioned officer working for the General Directorate of Passports in a governorate was arrested for illegally receiving sums of money in exchange for extending temporary work visas. A mayoralty employee from a governorate was arrested for receiving sums of money from a businessman, a citizen, and two residents in exchange for canceling violations issued by a branch municipality affiliated with the mayoralty against commercial entities for violating municipal regulations. An expatriate was arrested for offering a sum of money to a Nazaha employee at an airport in exchange for illegally removing a seized shipment of tobacco. A non-commissioned officer working for the General Directorate of Civil Defense was arrested while receiving a sum of money from a store employee in exchange for overlooking some violations and renewing his Civil Defense license. An employee working for a municipality in a governorate was arrested while receiving a sum of SR17,000 in exchange for enabling a citizen to complete construction of a property without a title deed and promising to provide him with electricity connection. An employee and a court clerk working at a criminal court in a region were arrested for illegally receiving sums of money from clients in exchange for following up on their pending cases before the same court and providing them with information. A non-commissioned officer working at a police station in one of the governorates was arrested for using a vehicle license plate impounded at his workplace on his personal vehicle and committing several traffic violations. An employee working for the National Water Company in one of the governorates was arrested for receiving sums of money from a resident working for a waterproofing company in exchange for providing him with a list of phone numbers of National Water Company customers who had filed complaints about water leaks in their homes. The Nazaha spokesperson confirmed that it continues to monitor and apprehend anyone who embezzles public funds or exploits their position for personal gain or to harm the public interest, and to hold them accountable even after the end of their service as an employee. The authority warned that it would continue enforcing the law against violators without any leniency.
Arab News
15 hours ago
- Arab News
Saudi Arabia's money supply hits $832bn as time deposits reach 16-year high
RIYADH: Saudi Arabia's money supply rose to a record SR3.12 trillion ($832 billion) in June, marking a 7.63 percent annual increase, driven predominantly by a sharp rise in time and savings deposits. According to data from the Saudi Central Bank, also known as SAMA, these income-generating accounts, now totaling around SR1.1 trillion, represent the highest share of the money supply in 16 years. While demand deposits — non-interest-bearing checking accounts — remain the largest component at 47.93 percent, or SR1.49 trillion, their growth at 5.2 percent year on year has lagged that of savings accounts, which grew 21.71 percent over the same period. Other quasi-monetary instruments, including residents' foreign currency deposits, marginal deposits related to letters of credit, outstanding remittances, and repo placements, account for roughly 9 percent of the money supply. However, this category declined 18.54 percent, dropping to SR280.54 billion. Meanwhile, currency outside banks, although the smallest component at 7.83 percent, increased 6.6 percent to SR244.31 billion. Why are time deposits surging? Global monetary tightening and attractive yields are key factors. After previously peaking at 6 percent, SAMA reduced its repo rate in stages, mirroring that of the US Federal Reserve — first to 5.5 percent in September 2024, then further to 5 percent in December 2024. Despite these cuts, the current rate remains relatively elevated compared to the prolonged low-rate environment of previous years, making fixed-term, interest-bearing accounts more attractive than demand balances. Strong lending growth, particularly in sectors tied to Vision 2030, mortgage financing, and corporate borrowing, has outstripped deposit inflows. As a result, banks face increased funding needs and have ramped up offerings on time deposits to attract liquidity. The 2025 International Monetary Fund Article IV Mission noted that while banks maintain strong solvency at 19.6 percent and a healthy return on assets, liquidity pressures are building, and liquid assets relative to short-term liabilities have declined. In response, banks are expanding liabilities through bonds, syndicated loans, and certificates of deposit. Notably, net foreign assets turned negative in 2024 for the first time since 1993, highlighting rising external borrowing. To address risks, SAMA introduced a 100-basis-point countercyclical capital buffer in May 2025, and the IMF welcomed this step, along with tighter loan-to-value and debt burden measures, plus potential foreign-currency liquidity ratios to bolster financial stability. Market analysts foresee continued strength in time and savings deposits. Alvarez & Marsal's first quarter Banking Pulse reported that deposits rebounded 4 percent quarter on quarter, led by an 8.1 percent increase in time deposits, following a seasonal dip at the end of 2024. Likewise, Fitch Ratings, in its March 2025 forecast, projected lending growth of 12–14 percent, led by corporate demand, to continue outpacing deposit growth. Fitch expects Saudi banks to issue more than $20 billion in debt this year as they shift toward non-deposit funding. This, coupled with the continued dilution of CASA 'current and savings accounts' and competition for funding, may blunt the benefits of lower policy rates on banks' net interest margins.
Asharq Al-Awsat
17 hours ago
- Asharq Al-Awsat
Saudi Arabia Rolls Out Measures to Spur Property Use
Saudi Arabia on Sunday began enforcing an updated version of its 'white land' tax, under directives from Prince Mohammed bin Salman, Crown Prince and Prime Minister, aiming to push landowners to either develop or sell idle plots to developers, boosting supply and easing property prices. The amended rules broaden the levy to include vacant buildings, as well as undeveloped plots, and streamline its rollout by imposing an annual tax of up to 10% of a plot or group of plots' market value if their combined area within an urban zone is 5,000 square meters or more, according to regulations. Vacant properties will also face an annual tax based on comparable rental values, capped at 5% of their market value. This rate could be increased to 10% by cabinet decision on a ministerial committee's recommendation. State-owned properties are exempt. Hamed bin Hamri, a member of the Eastern Province Chamber of Commerce's real estate committee and chief executive of Tamkean Investment, said the tax would pressure owners to utilize vacant assets or sell them to avoid annual charges, spurring market activity. 'Holding onto undeveloped land will now come with a cost linked to its market value,' he told Asharq Al-Awsat. 'This reduces the appeal of land hoarding.' He urged owners to seize the opportunity to build or partner with developers to revive unused plots, and called for incentive schemes, easier bank financing, and feasibility studies to help owners bring projects to life. Khalid Aljasir, head of Amaken International Group, warned that the changes could trigger a cautious slowdown in the real estate market. 'Supply will rise faster than demand, giving buyers with cash more bargaining power,' he told Asharq Al-Awsat, predicting that this caution could last for six months before the market regains balance. He described the move as 'bold' and said it could push land prices back to earlier levels. Financial and economic consultant Hussein Al-Attas told Asharq Al-Awsat that expanding the tax to cover vacant buildings was a key step towards tackling one of the main causes of market stagnation — idle, ready-to-use properties. Setting a 5,000 square meter threshold for taxable plots would reduce inefficient land fragmentation and make compliance easier to monitor, he said. Linking the tax rate to asset value, capped at 10%, would ensure fairness and reduce evasion while encouraging genuine development. By targeting vacant buildings, the system addresses shortages in ready-to-occupy or investable stock, Al-Attas said, adding that flexible executive regulations would allow the housing ministry to adapt to shifting market conditions. 'These changes could accelerate development, limit speculative holding of assets, and support price stability while improving economic efficiency in the property sector,' he stressed.
