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Regulations · Saudi Arabia

Saudi Anti-Concealment (Tasattur) Law: A Guide for Foreign Sellers

Tasattur (commercial concealment) means letting a non-Saudi run a business under a Saudi's licence, name or CR. The 2020 Anti-Concealment Law punishes it with up to 5 years in prison and SAR 5 million in fines. Foreign sellers have legal routes instead: marketplaces, importer-of-record partners, distributors or their own MISA-registered company.

MayaBy MayaUpdated 10 min read
Key takeaways
  • Tasattur is when a non-Saudi runs a business for their own account using a Saudi's CR, licence, name or bank account. Both sides commit a crime.
  • Penalties reach 5 years in prison and SAR 5 million in fines, plus confiscation of proceeds and deportation for the non-Saudi.
  • Authorities follow the money. Mandatory e-payment in shops, bank data and inspections make cash-and-personal-account setups easy to spot.
  • The correction window closed on 16 February 2022, and no new amnesty has been announced.
  • A distributor or IOR that trades in its own name is legal. So are marketplace cross-border programmes and your own MISA-registered company.

Tasattur is Saudi Arabia's word for a front-man business. A non-Saudi runs the shop, keeps the profit, and a Saudi lends the name and the CR.

It's a serious crime. The 2020 Anti-Concealment Law punishes it with prison, multi-million-riyal fines and deportation.

Here's the good news. You don't need a borrowed CR to sell in Saudi Arabia, one of the fastest-growing ecommerce markets in the world. There are several legal routes, and some take only weeks.

Know where the line sits, and you can grow in Saudi Arabia without ever going near it.

5 years
Maximum prison term for concealment
Anti-Concealment Law, 2020
SAR 5M
Maximum fine per offence
Anti-Concealment Law, 2020
30%
Maximum whistleblower reward, as a share of the collected fine
Anti-Concealment Law, 2020

What is tasattur?

Tasattur (التستر التجاري, "commercial concealment") is any deal that lets a non-Saudi run an economic activity they aren't licensed for, using a Saudi person's licence, name or commercial registration. A CR (commercial registration) is the Saudi business licence every trading business needs.

The classic case looks like this:

  • A Saudi citizen registers a business in their own name.
  • A non-Saudi runs it day to day, controls the money and keeps the profit.
  • The Saudi gets a fixed monthly or yearly fee for the use of their name.

On paper, it's a Saudi business. In reality, it's a foreign one that skipped investment registration.

Why does Saudi Arabia care so much? Concealed businesses dodge foreign-investment rules, hide income from tax and push out genuine Saudi entrepreneurs. Fighting tasattur is a national programme, run by the Ministry of Commerce with around a dozen other agencies.

What does the 2020 Anti-Concealment Law say?

The current law was issued by royal decree in August 2020. It replaced an older 2004 law, and the ban itself goes back to 1989.

The law makes three groups liable:

  1. The Saudi enabler. Anyone who lets a non-Saudi use their CR, licence or name.
  2. The non-Saudi operator. The person who actually runs the business for their own account.
  3. Accomplices. Anyone who helps set it up or hide it, including advisers.

It also lists lesser violations that don't need a full front-man deal. Two matter most for online sellers:

  • Giving a non-Saudi unrestricted control of a business, such as its bank tokens, payment-gateway logins or signing authority, without legal grounds.
  • Using a bank account that isn't the business's own to collect or pay business money.

Want to see how a legal Saudi business is set up instead? Start with our guide to Saudi business registration.

What are the penalties for tasattur?

Concealment is punished with up to 5 years in prison, a fine of up to SAR 5 million, or both. Repeat offenders within 3 years face double.

A conviction also brings:

  • Confiscation of the proceeds, or other assets of equal value if the proceeds are gone.
  • Deportation of the non-Saudi once the sentence is served and dues are paid, with a ban on re-entering the Kingdom.
  • Dissolution of the business, with its licences cancelled and its CR struck off.
  • A 5-year ban on the convicted person running that activity or any other commercial work.
  • Joint liability for the business's unpaid zakat, taxes and government fees.
  • Publication of a summary of the final judgment by the ministry.

The lesser violations under Article 4 carry a fine of up to SAR 500,000. The business can also be closed for up to 90 days.

How do authorities spot concealment?

The national anti-concealment programme follows the money. Most cases start with data, not a tip-off.

Three things make concealment easy to spot:

  • Mandatory e-payment. Since 2020, every retail outlet in Saudi Arabia must offer electronic payment, such as mada cards and Apple Pay. Card and POS (point-of-sale) data show what a business really sells.
  • Bank monitoring. SAMA, the Saudi Central Bank, tracks suspicious transaction patterns alongside money-laundering checks.
  • Data analysis first. The ministry matches payment, bank, tax and labour data, then sends inspection teams to the businesses that don't add up.

These are the patterns investigators look for:

  • Revenue that doesn't match the business's declared size or VAT returns.
  • Takings that end up in a non-Saudi's personal account, or move abroad straight away.
  • A Saudi owner who receives a flat fee instead of business profit.
  • A non-Saudi holding blank cheques, a general power of attorney or the online banking tokens.
  • Cash-heavy sales with few card transactions.
  • Store, app or marketplace accounts registered to one person and run by another.

Ecommerce leaves a bigger paper trail than a corner shop. Every gateway payout, shipping label and ad invoice links back to a name.

A Saudi compliance adviser and a foreign brand manager reviewing payment flows on a laptop in a Riyadh office
Every payout, invoice and shipment links back to a name, so ecommerce setups are easy to trace.

Is there still a correction period?

No. The correction period closed on 16 February 2022, and the ministry said it wouldn't be extended again.

The law gave violators a one-time chance to fix their status without penalties. Here's how that played out:

  1. Aug 2020
    New Anti-Concealment Law issued

    Royal Decree M/4 replaces the 2004 law and sets up a 180-day window to correct status without penalties.

  2. Aug 2020
    E-payment made mandatory

    All retail outlets must offer electronic payment, a key data source for spotting concealment.

  3. Feb 2021
    Correction programme opens

    Saudis and non-Saudis can apply to correct their status, with fee waivers and easier licensing.

  4. 23 Aug 2021
    First deadline extended

    The ministry gives violators six more months.

  5. 16 Feb 2022
    Correction period ends

    No further extension. Inspections and penalties follow.

  6. 2026
    No new amnesty

    Enforcement continues, with regular reports of fines and business closures.

If someone offers you a "tasattur amnesty" today, ask them to show you the official ministry announcement. There hasn't been one since 2022.

How does tasattur affect foreign ecommerce sellers?

Tasattur isn't just a corner-shop problem. Online sellers face it whenever they try to shortcut the Saudi paperwork.

The "borrowed CR" store

This is the most common trap. A foreign brand wants a local Salla or Zid store, a mada-enabled payment gateway or a Saudi marketplace account, and a Saudi friend offers their CR or freelance document.

It's concealment if:

  • you control the store, the stock and the gateway login;
  • sales money flows to you, not to the CR holder's business; and
  • the CR holder gets a fee for the use of their name.

Payment is where it usually breaks. Gateways and banks onboard the CR holder, so the payouts land in a Saudi account you don't legally own. Moving that money to you is exactly the bank-account violation in Article 4.

There's a second trap. The law makes any contract aimed at concealment void, so your side deal with the CR holder gives you no legal claim to the store, the stock or the cash.

Our guide to accepting mada as a foreign company shows the legal ways to take local cards.

Importer-of-record arrangements

An importer of record (IOR) is the company named on the customs declaration. It's responsible for duties, VAT and product compliance.

A licensed IOR service is legal. It imports in its own name, under its own CR, for a fee. What matters is who trades:

QuestionLegal IOR or distributorConcealment risk
Who's the business owner?The Saudi company, trading for its own accountThe CR holder on paper; you in reality
Who signs the bank account?The Saudi company onlyYou, or someone you appoint
How is the Saudi party paid?A service fee or a wholesale margin, on invoicesA flat fee for the use of the name
Whose name is on the CR, SABER and VAT?The Saudi company's, and it really holds themSomeone who never touches the business
Who keeps the profit from Saudi sales?The Saudi company, or you through a registered structureYou, through informal transfers

See how real IOR services work in our importer of record guide.

Distributor deals done right

A distributor buys your goods and resells them in Saudi Arabia under its own CR. You're a supplier, not a hidden owner.

To keep it clean:

  • Sell at a wholesale price. The distributor pays your invoices and sets its own retail prices.
  • Let the distributor hold the licences. It holds the CR, VAT number, SABER certificates and SFDA registrations.
  • Sign a proper contract. Use a written distribution or commercial agency agreement, which Saudi law recognises.
  • Keep your control commercial. Brand guidelines and minimum orders are fine. Logging into their bank isn't.

A worked example

A UK skincare brand has SAR 80,000 a month in Saudi demand. It weighs two setups.

Setup A (concealment). A Saudi friend opens a Salla store on his freelance document. The brand ships stock, runs the store and pays the friend SAR 3,000 a month. Customer payments land in the friend's account, then get wired to the UK.

Over a year, that's SAR 960,000 of sales through a personal account and SAR 36,000 in name fees. Every red flag is there: a fixed fee, a non-owner in control and money moving through the wrong account.

Setup B (legal). A Riyadh beauty distributor buys stock at wholesale and holds the SFDA registrations. It sells on its own Salla store and on Amazon.sa. The brand invoices the distributor and earns its wholesale margin, with no exposure in Saudi Arabia.

Setup B earns less per unit. But it's legal, it scales across marketplaces, and the brand can move to its own company later.

You have four solid alternatives, from quickest to most involved:

Marketplace cross-borderIOR partnerSaudi distributorOwn MISA company
Saudi entity needed?
Who trades in Saudi?You, via the marketplaceYou; IOR handles importsThe distributorYour company
Time to startWeeksWeeks1–3 months2–4 months
Control of brand and pricingHighHighMediumFull
Best forTesting demandLocal stock and fast deliveryRegulated goods and retail reachLong-term scale
Legal routes for foreign sellers into Saudi Arabia
  • Marketplace cross-border. Amazon Global Selling and noon's cross-border programmes let foreign companies sell to Saudi shoppers without a local entity. See selling on noon as a foreign company.
  • IOR partner. A licensed importer of record clears your stock into Saudi warehouses, so you get fast local delivery.
  • Saudi distributor. The best route for regulated products that need local registrations.
  • Your own company. Register with MISA, the Ministry of Investment, then get your CR. A 100% foreign trading company needs SAR 30 million in capital, so most sellers start with the other routes first. Our MISA investment registration guide walks you through it.

Not sure which fits? The full comparison is in our guide to foreign company requirements in Saudi Arabia.

Whistleblower rewards

The law rewards people who report concealment. A whistleblower can get up to 30% of the fine collected, once the judgment or decision is final. The reward goes to people who weren't convicted in the case.

The ministry keeps the reporter's identity in a confidential record, separate from the case file. That's why ex-employees, rivals and unhappy partners are a real source of cases.

For a foreign seller, the lesson is simple. A borrowed-CR deal depends on everyone involved staying happy and silent, for years.

Notes for Chinese sellers

  • Agents in Yiwu, Guangzhou and Dubai sometimes offer a "ready Saudi store" on a local person's CR. Treat that as a front-man offer and walk away.
  • Factories have a clean route: sell wholesale to a Saudi distributor, or ship through noon Global or Amazon Global Selling.
  • For a company of your own, see company setup in Saudi Arabia for Chinese businesses.

Notes for expats living in Saudi Arabia

  • The freelance document is for Saudi citizens only. Using a Saudi friend's document for your side business is concealment.
  • Your legal options are MISA registration (including through Premium Residency) or a salaried role in a properly registered company.
  • Selling on a Saudi marketplace as a resident still needs a CR in your own name. For a non-Saudi, that means a MISA-registered company.

Notes for UAE-based companies

  • A UAE company can sell into Saudi Arabia through noon's UAE-to-KSA Global store without a Saudi CR.
  • For local Saudi stock, use an IOR partner or a distributor rather than a Saudi friend's CR.
  • When you're ready, a UAE parent can register a Saudi subsidiary with MISA.

Frequently asked questions

No. A real Saudi partner owns shares, shares profits and risk, and the company is registered with MISA if a foreigner holds any stake. Tasattur is a fake arrangement where the Saudi is the owner on paper only and the non-Saudi runs everything and keeps the profit.

Sources & further reading

  1. Anti-Concealment Law — Ministry of Commerce
  2. Anti-Concealment Law (Royal Decree M/4, 1442H) — Bureau of Experts at the Council of Ministers
  3. A new Anti-Commercial Concealment Law has been issued, increasing the penalties — Ministry of Commerce
  4. The corrective period for violators of the Anti-Concealment Law has ended — Ministry of Commerce
  5. All retail outlets obliged to provide e-payment — Ministry of Commerce
  6. Investor Guide (13th edition, March 2026) — Ministry of Investment (MISA)
  7. Saudi Arabia's new Anti-Concealment Law — Baker McKenzie

This guide is for general information only and is not legal, tax or financial advice. Rules and fees change — always confirm with the official source or a licensed advisor.

Maya
Maya

Maya is MiddleEastEcom's lead guide and editor. She researches GCC marketplaces, payments and regulations and turns them into practical playbooks for sellers.

Meet Maya