Saudi Arabia Establishes Ministerial Panel to Fight Commercial Fraud

Saudi Arabia is keen on fighting commercial cover-up by using technology and artificial intelligence (Asharq Al-Awsat)
Saudi Arabia is keen on fighting commercial cover-up by using technology and artificial intelligence (Asharq Al-Awsat)
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Saudi Arabia Establishes Ministerial Panel to Fight Commercial Fraud

Saudi Arabia is keen on fighting commercial cover-up by using technology and artificial intelligence (Asharq Al-Awsat)
Saudi Arabia is keen on fighting commercial cover-up by using technology and artificial intelligence (Asharq Al-Awsat)

Saudi Arabia has established a ministerial committee to oversee the national program to combat commercial cover-up and to propose solutions and initiatives to eliminate the practice.

The government decision comes in light of financial estimates over the effect of the commercial cover-up on the national economy, incurring losses estimated at more than $93.3 billion annually.

The committee is expected to watch over the implementation of initiatives and develop indicators to measure the performance of all relevant authorities.

Under the government decision, the Saudi Data and Artificial Intelligence Authority (SDAIA) shall build an index to measure the percentage of suspected cases of commercial cover-up and update it periodically according to the data received from concerned authorities.

The Ministries of Commerce and Human Resources and Social Development, the Saudi Arabian Monetary Authority (SAMA), the General Authority of Zakat and Tax (GAZT) and any other body named by the Supervisory Committee shall provide SDAIA with the necessary data for the indicator for measuring suspected cases of cover-up on a quarterly basis, the decision added.

It stipulated that the Ministry of Municipal and Rural Affairs develop a plan that obliges all grocery stores to implement the updated municipal requirements for their activity and work and ensure their implementation within the specified time frame.

The ministry was also ordered to prepare an indicator to measure the sector’s adherence to the requirements and submit it to the Council of Economic and Development Affairs within 60 days.

The Supervisory Committee to Combat Commercial Cover-up is chaired by the Minister of Commerce and shall include under the latest decision the ministers of transport and environment, water and agriculture, and the SDAIA president.

It is noteworthy that the national program was established to address commercial cover-up in all sectors and stimulate e-commerce and the use of technological solutions.

The program also organizes financial transactions to reduce the exit of funds, promote private sector growth and create a competitive environment that attracts Saudis and encourages them to invest and find solutions to the problem of foreigners' illegal ownership in the private sector.

In this context, economic analyst Dr. Mohammed bin Dulaim al-Qahtani told Asharq Al-Awsat that the size of commercial cover-up in the Kingdom is estimated at SAR350 billion ($93.3 billion) annually in various sectors.

He said the Saudi citizens are contributing in this for the benefit of foreign workers, whether by allowing them to use their name, license, commercial register, or in any other means.

According to Qahtani, the previously announced national program will be based on developing regulations and legislation, intensifying means of monitoring, promoting the principle of continuous awareness and uniting the efforts of the public and private sectors.

The program is considered a qualitative leap that would control practices hindering the progress in the Saudi economy and the implementation of the Kingdom Vision 2030’s national transformation programs and initiatives.



World Bank Predicts Deeper Decline in Yemen’s Economy Due to Ongoing Conflict

Most of Yemen’s population lacks essential services and struggles with limited means of livelihood. (AFP)
Most of Yemen’s population lacks essential services and struggles with limited means of livelihood. (AFP)
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World Bank Predicts Deeper Decline in Yemen’s Economy Due to Ongoing Conflict

Most of Yemen’s population lacks essential services and struggles with limited means of livelihood. (AFP)
Most of Yemen’s population lacks essential services and struggles with limited means of livelihood. (AFP)

The World Bank has confirmed a 58% decrease in per capita income in Yemen and expects the country’s real GDP to shrink by 1.5% this year. The Bank anticipated that the negative economic effects will worsen due to the depreciation of the local currency, reduced financial support, shrinking liquidity, and the ongoing fuel crisis.

In its quarterly report, the Bank warned that Yemen’s economy is under severe strain. With the conflict still unresolved, institutional fragmentation worsening, and external support diminishing, the report suggested that the country is on a path that could derail recovery efforts unless a peaceful resolution is achieved. The decade-long war, sparked by the Iran-backed Houthi coup against the legitimate government, continues to be the primary driver of this economic deterioration.

The report stated that while inflationary pressures continue in government-held areas, the economy in Houthi-controlled regions is increasingly shifting toward informality, including reliance on bartering, amid declining remittances and weak economic activity.

Warning of the severe deterioration of Yemen’s economic and social conditions, the World Bank confirmed that Yemen’s government revenues have declined to just 2.5% of previous levels, due to the Houthis blocking oil exports for the third consecutive year.

This move has led to a sharp drop in public revenues, with government income, excluding grants, falling to only 2.5% of GDP in 2024, despite the fiscal deficit shrinking to the same level, compared to 7.2% the previous year.

The World Bank report, titled “Persistent Fragility Amid Rising Risks,” stated that real per capita GDP has dropped by 58% since the beginning of the war, while inflation rates in areas controlled by the government have risen above 30% in 2024.

The report noted that the exchange rate of the local currency against the dollar fell from 1,540 to 2,065 riyals over the past year, “further eroding household purchasing power,” amid a rapid surge in the prices of basic goods.

Discussing the deep monetary division between government-held and Houthi-controlled regions, the World Bank emphasized that this split undermines efforts at national financial and monetary coordination and entrenches wide disparities in services, institutions, exchange rates, and banking systems.