Saudi Arabia Update – November and December 2017

by Dentons
Contact

Dentons

Legal developments

Saudi Arabia anti-corruption drive and protection of corporates

In the wake of Saudi Arabia’s headline-grabbing anti-corruption drive in November, Crown Prince Mohammed bin Salman instructed the Council of Economic and Development Affairs (the Council) to ensure that companies affiliated with individuals subject to investigations are not affected by the Kingdom’s efforts to address the issue of corruption. This comes as an move to assure investors that they can continue to operate in Saudi Arabia with confidence.

The Council emphasised that all investigations are in accordance with laws and regulations and that the new anti-corruption measures are a key part of Vision 2030 and creating a fair and level playing field for all.

Arab News – 8 November 2017

No change to job titles in Iqama

Expatriates working in Saudi Arabia are required to have a work permit (colloquially referred to as an Iqama). The Iqama must clearly state the job title of the individual and, in case of an inspection or raid on the employer, the individual should be found working within the ambit of his or her job title in order to avoid further enquiries or possible penalties by the Saudi authorities.

The Ministry of Labor and Social Development (MOL) announced in November that it has stopped the service of changing job titles in Iqamas – although this can be challenged electronically.

Saudi Gazette – 8 November 2017

Saudization – upper age limit for Saudi employees

Saudization is a colloquial term used to refer to the Kingdom’s official government policy of ensuring the hiring, training, and development of Saudi Arabian nationals over expatriate employees in the Kingdom. The MOL in November announced that Saudi Arabian employees over the age of 60 years will no longer be counted as Saudi employees in an employer’s Saudization rate.

Saudi Gazette – 8 November 2017

New Anti-Money Laundering Law

A new Anti-Money Laundering Law was enacted on 25 October 2017, and provides that any person who commits a money laundering crime will be sentenced to imprisonment for a period of between three and 15 years and/or a payment of a fine of no more than SAR 7 million (about US$1.9 million). Saudi nationals will also be banned from travelling for the same period as their prison period, once released. Non-Saudis will be deported after completing their sentence and will be banned from entering the Kingdom again.

A money laundering crime according to the new law includes conducting any transaction involving property or proceeds with the knowledge that they are the result of criminal activity or originate from an illegitimate source in order to disguise, protect or help that source or any other person involved in the original crime through which the property or proceeds were obtained.

Arab News – 5 November 2017

New measures to monitor sale and entry of medicines

The Saudi Food and Drug Authority (SFDA) announced in November that a new monitoring system for the sale and entry of medicines in the market would be put in place as part of the 2020 National Transformation Program. The monitoring system will require all medicines to be stored in boxes carrying a bar code and is aimed at preventing the sale and entry of illegal medicines in Saudi Arabia.

Saudi Gazette – 12 November 2017

93 per cent rise in concealment cases

As described in October’s Update , Tasattur (or concealment) is the colloquial name for the practice by which unlicensed foreign investors carry out business in the name of Saudi nationals in return for payment, and is in violation of the Kingdom’s Anti-Concealment Law.

The Ministry of Commerce and Investment (MOCI) has inspected 14,701 establishments in an effort to expose and penalise cases of Tassatur and reported that such cases have increased by about 93 per cent during 2017 – there were 871 cases discovered this year as compared to 450 cases in 2016.

Saudi Gazette – 25 October 2017

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:

Dentons
Contact
more
less

Dentons on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.