Illegal labor in Eastern Province manages 50 bogus gold workshops

Abdul Ghani Al-Muhanna, head of the Gold and Jewelry Committee at Asharqia Chamber, said there are 200 illegal gold workshops in Saudi Arabia, 50 of which are in the Eastern region. “Most of these workshops manufacture bogus and stolen gold and are run by expatriates from their homes,” he said.
Al-Muhanna lashed out at foreign companies who operate in the Saudi gold market, accusing them of “contributing to laborers fleeing from organized legal workshops to work in illegal ones.” He added that Saudization in the gold sector has declined to 70 percent from 99 percent in the past.
Five foreign investment companies with offices in India and the United Arab Emirates have opened branches in the Kingdom and have recruited employees to work in illegal workshops. Most of these workshops are located in residential areas.
“These workshops manufacture and liquidize forged and stolen gold and have played a role in the increased rate of gold theft over the past few years,” Al-Muhanna said.
He described the illegal workshops as similar to international mafias. “Laborers with information about these workshops and how they work are reluctant to come forward as they feel they may put their families in danger back home. The money acquired from these workshops is distributed illegally and is turned into precious metal instead of cash,” Al-Muhanna said.
There are 50 illegal workshops in the Eastern Province, while the figure has risen to 150 in the rest of Saudi Arabia. Each factory has 200 workers.
Work is often carried out at night to avoid inspection.
“There are 200 gold shops in the Eastern Province with an investment volume of SR 1.3 billion, while the investment percentage Kingdom-wide is SR 60 billion,” added Al-Muhanna.