Saudi Gazette report

MADINAH – Illegal foreign workers have been dominating Madinah›s sheep market in the absence of proper monitoring by the authorities.

This monopoly often results in unjustified price increases, said many Saudi visitors to the market. They called on the authorities to intervene to reorganize the market after ending the illegal tasattur practice where foreigners run the businesses in the name of Saudis in return for a fixed payment.

“Foreign nationals have monopolized the Madinah sheep market,” said Awad Al-Harbi told Al-Madina Arabic daily. “They play with prices,” he said, adding that Saudi traders cannot enter the market due to the monopoly enjoyed by these foreigners.

He placed part of the blame on Saudi agents who provide shelter and support to foreign workers to illegally engage in tasattur business in the name of Saudis. “They inflate prices at astronomical proportions,” Al-Harbi told A-Madina.

Mohammed Al-Motairy highlighted various violations being committed by foreigners in the market. “Illegal expat workers engage in this business without any control. They make sales and purchases with the support of Saudi agents,” Al-Motairy explained.

He said Saudi agents take sheep from foreign workers. “If there were strict regulations, this would not have taken place,” he added.

Al-Motairy urged security authorities to keep a close watch on the market and prevent expatriates from engaging in sheep trade. Saudis who allow foreigners to run tasattur business in their name should be severely penalized for causing huge losses to the national economy, he said.

The Kingdom›s shadow economy grew from SR364 billion in 2008 to SR549 billion in 2014, accounting for one fifth of the country›s Gross National Product (GNP), according to World Bank figures.

Saudi economy loses SR300 billion to tasattur trade annually, according to Makkah Chamber of Commerce and Industry.

Official reports say around 1 million small businesses are some way involved in tasattur, engulfing 80 percent of the Kingdom›s business sector.

A United Nations report showed that tasattur accounts for 17 percent of the Kingdom’s GNP while expatriate workers control over 70 percent of the unregulated retail sector.

The Ministry of Commerce and Investment said it was monitoring cases of tasattur in various sectors including the sheep trade. “We take action against people involved in such illegal practices soon after receiving information,” it said.

“We verify information regarding tasattur business and take punitive action against perpetrators after confirmation of facts,” the ministry said. The punishment includes jail sentence for up to two years and fines of up to SR1 million for a single violator.

The ministry said foreigners involved in such businesses would be deported while the photos of violators would be published in local media at their expense.