Saudi Gazette report
JEDDAH – The rate of tasattur, or cover-up, business in the gold and precious stone sector has reached 30 percent, according to experts. They said a specific group of Asians who engage in the production and sale of jewelry was dominating the market.
Tasattur is described as foreigners running a business registered in the name of a Saudi in return for a fixed amount.
Some GCC nationals also play a leading role in the business, said Kareem Al-Anazi, chairman of the national committee for precious metals and gems. “The tasattur in the sector has reached not less than 30 percent and this will have a negative impact not only on the gold and precious stone sector but also on the national economy as a whole,” he told Al-Madina Arabic daily.
Al-Anazi said it is not difficult to identify gold and jewelry shops run by foreigners in the name of Saudis. “If the authorities ask the perceived Saudi owner about the value of the jewelry in his shop and the volume of daily sales they can easily find out whether the store belonged to him or not.”
He added: “A Saudi engaged in tasattur will not be able to answer those questions in detail. He would be happy by just receiving the monthly payment from the real owner of the shop, who is an expatriate businessman.”
Abdul Ghani Al-Saegh, a member of the national committee, said some expatriate workers make jewelry using impure gold. “They flood the market with such jewelry products in large quantities and sell them at reduced prices,” he told Al-Madina.
He said many Saudis have refused to join hands with these expatriate workers who make quick money tarnishing the reputation of the gold and precious stone sector.
“The government should take strong measures to stop tasattur in wholesale and retail gold and jewelry business and ensure the sector is fully Saudized,” he said while stressing the need to train Saudis to take up jobs in the sector, replacing foreigners.
Al-Saegh said the softening of regulations to provide commercial registration for opening gold and jewelry shops has provided expatriates an opportunity to engage in tasattur with the collusion of some Saudis.
“Those who apply for commercial registration in the sector should be asked to obtain a recommendation letter from a leading gold smith or prominent gold businessmen in the country in order to prevent the spread of tasattur in the sector,” he pointed out.
Abdul Ghani Al-Muhanna, a member of the national committee and chairman of the precious metals and gems committee at Asharqia Chamber, estimated tasattur business in the sector at not less than 30 percent.
“Some of the gold markets in the Kingdom were fully owned by Saudis in the past but now their ownership has been reduced to 3 percent while 97 percent are owned by Gulf relatives of Yemeni expatriates who in effect run the shops,” he added.
“Unfortunately the phenomenon of tasattur is growing in both retail and wholesale businesses and we see a single shop owned by a number of Indians with 100 kilograms of gold,” he added.
