Saudi Gazette report

RIYADH — Higher authorities have approved the implementation of the anti-tasattur program, which calls for combatting all forms of tasattur across the sectors, according to press reports on Monday.

Tasattur refers to the practice where a Saudi citizen permits an expatriate to run a business in his name against a fixed percentage of profits.

The execution of the law will help curb the outflow of capital from the country and enhance the growth of the private sector, in addition to creating job opportunities for Saudi youth, who will also be encouraged to own and run businesses. The program includes 16 recommendations.

The Ministry of Commerce and Investment will review the Anti-Tassatur Law and propose amendments within 90 days. It will also issue a franchise law and promote the use of technology.

The Small and Medium Enterprises General Authority (SMEA) will develop financial solutions in private and public sectors by empowering Saudis to control sectors that are currently controlled by non-Saudis.

The Saudi Arabian General Investment Authority (SAGIA) will explore potential methods to make sure that investments by non-Saudis enhanced the national economy and benefited society in a way that guaranteed sustainable returns.

It was also recommended that the Ministry of Interior and SAGIA together with pertinent authorities study the cases of some non-Saudis residing in the Kingdom and provide them with investment opportunities.

The Ministry of Commerce and Investment will along with SAGIA regularize the status of non-Saudis who run a business in the name of a Saudi and suggest solutions to ensure that they comply with pertinent laws.

The Ministry of Labor and Social Development will work on saudizing the sectors where tasattur seems to have become rampant and will introduce programs to train Saudis on how to run a retail business.

The Saudi Arabian Monetary Agency (SAMA) will continue to monitor the movement of funds and the source of any suspicious money and impose more control on financial transactions to ensure that any money laundering or tasattur activities are caught.

The recommendations ensure that the law will enable Saudis to run a business across all sectors and create a conducive environment for that. All businesses will be required to use technological solutions to regularize their financial transactions and prevent any attempt to send money abroad in a way that harms the national economy.