The Saudi private sector is preparing a comprehensive report identifying the difficulties businesses face when contesting violations through the government’s Efaa platform, including fines imposed during the COVID-19 pandemic, Asharq Al-Awsat has learned.
The Efaa platform was created to allow citizens, residents, visitors, and business owners to review all government-issued violations easily and transparently. It aims to unify and simplify the process for handling fines and violations, improve efficiency, and enhance public compliance with regulations.
Despite these efforts, several private-sector companies still carry debts from penalties imposed during the pandemic that they have been unable to settle. According to informed sources, the report is being prepared at the request of the Executive Committee for Improving Private Sector Business Performance (Tayseer). The committee instructed the Federation of Saudi Chambers to document all the challenges companies face when submitting objections through Efaa.
The report will detail the main obstacles preventing businesses from successfully contesting violations, especially those related to COVID-19 restrictions. It will also assess the economic impact of these penalties and propose practical solutions to ease the burden on affected companies, helping to improve the business environment and promote sustainable growth.
Once completed, the report will be submitted to Tayseer’s secretariat and then shared with the Ministry of Finance for review and feedback. The findings will later be presented at the committee’s regular meeting, where potential reforms and policy adjustments may be discussed.
During the pandemic in 2020, Saudi Arabia introduced strict preventive measures to control the spread of the virus, including penalties for violating health and safety regulations. Micro-enterprises were fined SAR10,000 ($2,600) and closed for five days; small enterprises faced SAR20,000 ($5,300) with the same closure period; medium enterprises were fined SAR50,000 ($13,300); and large enterprises were penalized SAR100,000 ($26,600).
Repeat offenses led to doubled fines and possible closures of up to six months. Branch managers could also face fines based on company size and, upon repeated violations, be referred to the Public Prosecution for possible imprisonment under applicable regulations.
Established in 2017 under Vision 2030, the Tayseer Committee brings together representatives from government agencies and the private sector to enhance the investment climate. It monitors reform progress, coordinates with relevant entities, and submits monthly reports to the Minister of Commerce, highlighting achievements, challenges, and recommendations for improving Saudi Arabia’s business environment.
