MAKKAH, 12 May 2007 — Many local Saudis have expressed concern at the fact that non-Saudis are monopolizing the majority of trade in Makkah, especially close to the Grand Mosque where business usually is extremely brisk.
According to local people, expatriates, mainly from south Asian countries, open businesses under the names of Saudi citizens, who in return get a fixed monthly payment. The arrangement, known as commercial coverup, is illegal under Saudi law. The Kingdom’s current legal system makes it difficult for non-Saudis to start businesses or own real estate, and that is why many of them resort to clandestine ways of operating businesses.
Arab News met a number of Makkah residents who explained that such practices were quite common in the city. Saudi citizen Ghazi Shakir feels that these practices prevent local Saudis from getting jobs.
“No matter how high the salary of a non-Saudi worker maybe, it is of little benefit to the Kingdom. Saudis are going to spend their money in the local market, while expatriates generally transfer the bulk of their income to their home countries. This has a negative effect on the local market,” said Shakir.
Bandar Talaba, another Saudi citizen, said he did not wish to “generalize” but felt that most expatriates were in the Kingdom solely for financial gain. “This of course has negative effects and harms the Kingdom’s image. Local people are the ones who miss out,” he said.
Another Saudi, who preferred to remain anonymous, likened the issue as a “war of some sort.”
“Although no weapons are used, there is a big war. Citizens must realize the drawbacks of making such clandestine deals with non-Saudis. They must understand that these types of acts are against the law and that they are damaging the economy depriving future generations their chance to earn a living,” he said.
Abdullah Hassan, a real estate owner, said that expatriates control real estate prices and set them according to how they feel. “They purchase hotels under Saudi names and set the prices as they want. They’re pretty good at it as well. They arrange themselves in groups and have spread out across Makkah. They even tend to ignore municipal health and safety regulations,” said Hassan.
According Talal Mahjoob, the problem is a widespread one. He blames Saudi law. “Non-Saudi shopkeepers around the Grand Mosque are actually working for themselves. They put in 12 hours or more a day; this is because they are working for themselves and want to make the maximum profit possible. If they were working for Saudi employers, then they wouldn’t work more than eight hours,” said Mahjoob.
Ismail Gulam, a Bangladeshi worker who runs a shop across the Grand Mosque, said that commercial coverup is rampant in both the retail and real estate markets. “The majority of expatriates running such businesses are from South Asian countries. There are those who sell rosaries and other small items. And there are those who rent buildings to pilgrims. These people give an amount of money each month to the Saudis who sponsor them,” said Gulam, adding that many expatriates got very rich working like this.
Academic Khalid ibn Ahmad Al-Issa, who is the manager of the Information Center at the American International University, praised the efforts of the Ministry of Commerce and Industry and said that much more needs to be done to put an end to the coverup phenomenon.
“The role of the ministry is not limited to ensuring that documents are in line with rules and regulations. It is also important to check what happens after the registration process,” said Al-Issa, adding that management is about planning, implementation, evaluation and interaction.
“I urge the ministry to pay close attention to the last two steps, since they are vital for the Kingdom to develop further. How can a citizen, whose salary is low, own lots of shops in the vicinity of the Grand Mosque? This is a question that the Ministry of Commerce and Industry needs to ask,” he said.
He added that if there were a will to stop commercial coverup then the ministry would be successful in overcoming the issue. “There is a need to do something rather than to just talk about the issue. At the end of the day the local economy is the one which is going to benefit or get damaged,” he said.
