Commercial fraud costs the Kingdom about SR16 billion a year, according to statistics released recently at the Eastern Commercial Forum in Dammam.
Abdul Rahman bin Rashid Al-Rashid, chairman of the Asharqia Chamber, said in his speech at the opening ceremony that these losses require urgent discussions on how to implement fraud control mechanisms.
The latest international statistics indicate that the counterfeit and adulterated goods market globally is around SR200 billion a year, said Al-Rashid. He said fraudulent activities drain the country’s economic resources and is a threat to the development of the real economy.
Eastern Province Gov. Prince Saud bin Naif said in his speech that the Kingdom’s economy continues to grow and the country remains a strong regional and international player.
Prince Saud said he supports measures to overcome challenges facing investors, especially in the trade sector. He also supports competition and initiatives to provide new business opportunities.
The president of the chamber, Yusuf bin Ahmed Al-Dosari, said the forum was important because it focused on various crucial issues, including rising prices globally and the implications of the growth in e-commerce.
Al-Dosari emphasized the importance of tackling fraud and cover-up businesses because of their negative effects on the economy.
He said the rapid development of the local commercial market was heavily influenced by structural changes in the economy and the growing population. These developments, he said, have resulted in an extra one million commercial registrations recorded by the Ministry of Commerce last year.
Al-Dosari urged the ministry to support franchising by drawing up regulations guaranteeing the rights of both parties. He said these regulations would create new opportunities that would benefit the youth and expand the commercial sector.
Participants also discussed rising global prices and the impact on the local market. Managing Director of Al-Muhaideb Food Company Badr bin Hamed Al-Aujan, in his working paper on the issue, said food prices are influenced by natural variables such as earthquakes and natural disasters, all of which lead to an imbalance in the supply and demand equation.
However, he said some governments have contributed to rising prices. For example, the Indian government decided to limit the export of rice and wheat by placing a tax on basmati rice.
In a working paper, CEO of the National Initiatives Company Rashid Al-Ballaa said e-commerce was still limited in the Kingdom compared to markets in the United States and China. However, he expects an expansion of e-commerce in the Kingdom because of the rapid spread of the Internet and the prevalence of smartphones.
Al-Ballaa said obstacles facing e-commerce in the Kingdom include a lack of clear regulations and support systems.
KSA loses SR16bn in commercial fraud
