Key points
- Concealment means enabling a non-Saudi to run an unlicensed business under a Saudi's name or registration.
- Both the Saudi "concealer" and the non-Saudi are liable, as can be the business itself.
- Penalties include imprisonment, fines up to SAR 5 million, confiscation, closure and deportation.
- Foreign investors can avoid the risk by registering with MISA and owning a business openly.
What counts as concealment
Under the Anti-Concealment Law, concealment is an agreement or arrangement under which a person enables a non-Saudi to carry on an economic activity in the Kingdom that the non-Saudi is not licensed to carry on, using the concealer's licence, approval, commercial registration or trade name. The law also covers related conduct, including:
- obstructing inspectors or giving them misleading information;
- giving a non-Saudi the means to take full control of a business unlawfully;
- using a bank account that does not belong to the business for its activities.
Who is liable
Liability can fall on the Saudi individual or business that lends its name, the non-Saudi who benefits, and the establishment through which the arrangement operates.
Penalties
- imprisonment of up to five years, a fine of up to SAR 5 million, or both;
- confiscation of illegal proceeds;
- cancellation of the commercial registration and licences, liquidation of the business and a ban on commercial activity;
- payment of zakat, fees and taxes due;
- deportation of the non-Saudi, who is barred from returning to work in the Kingdom.
Doing business legitimately
The Investment Law makes it straightforward for foreign investors to own businesses openly: register with MISA, choose a company form and incorporate in your own name. Existing arrangements that may amount to concealment should be reviewed with a lawyer and restructured.
Questions clients ask
What is a commercial cover-up in Saudi Arabia?
What are the warning signs of concealment?
How can a foreign national own a business legally?
Official sources
Laws change. We cite the official text so you can check the current version.
This page is general information, not legal advice for your situation.