Fatima Muhammad

Saudi Gazette

JEDDAH – Businesses involved in cover-up (tasattur) trade should be given time and opportunity to legalize their commercial transactions, an expert told the Jeddah Commercial Forum here on Sunday.



Ayman Fadel, the dean of the faculty of Economics and Administration at King Abdulaziz University (KAU) in Jeddah, drew a distinction between cover-up dealings which are of criminal intent such drug trafficking, weapons trade and money-laundering and the ones which are illegal but not harmful for society at large. Cover-up commercial transactions are harmful for the economy because people involved in such trade do not pay taxes, he said.



Fadel said that up to 97 percent of small businesses were involved in cover-up trade. “We are not dealing with people doing these businesses as criminals. We are now giving them a chance and time to legalize their businesses. We will work on easing the regulations and be more flexible with small business owners,” he said.



According to Fadel, there are eight million jobs in the private sector and only 10% of which are occupied by Saudis. He added that the Kingdom is the second Arab country after Iraq with a high unemployment rate. The Kingdom, he said, came second to US in the amount of money transferred out of the country.



According to Abdullah Bin Mahfouz, an executive board member at the Jeddah Chamber of Commerce and Industry (JCCI), cover-up businesses have increased because Saudis have given the permission to expatriates to run the illegal trade. “A Saudi issues up to 10 visas and then he gets paid on a regular basis by these expatriates,” he said.



Abdulaziz Deyab, an economics professor at KAU, bemoaned the absence of a government body to regulate the market and combat cover-up businesses.



According to him, SR236.5 billion is being wasted due to cover-up businesses. He added that during the last 10 years SR670 billion has been sent outside the Kingdom.



The Forum was inaugurated Saturday evening in the presence of Prince Mishal Bin Majed, Governor of Jeddah. Addressing the audience, Prince Mishal said that the authorities will take tough measures to combat cover-up businesses so as to protect national economy, industry and society.



Mazen Batterjee, JCCI Deputy Chairman, said the Forum will discuss important economic issues.



According to Nashwa Tahir, in-charge of the Forum, the multiple issues facing the commercial sector led them to change the themes of the Forum. This year’s Forum focuses on enhancing national commercial trade based on international standers.



Over 500 experts are attending the event to find solutions to the most pressing issues and challenges facing the commercial sector.