The competition watchdog at the Ministry of Commerce and Industry has launched an investigation into allegations that a “foreign mafia” is monopolizing the media advertising market.

Firas Al-Maddah, former deputy chairman of the Advertising Committee at the Jeddah Chamber of Commerce and Industry, accused the ministry of allowing foreign advertising agencies to dominate advertising activity in the country.

The accusation came following the signing of an agreement worth SR20 million between the Ministry of Culture and Information and a foreign company.

Al-Maddah said the ministry is the only authorized body to grant such licenses.

Abdul Aziz Al-Mulhim, the official spokesman at the ministry, said that the matter lies with the General Authority for Audio and Visual Media.

In response, Abdul Rahman Al-Hazza, president of the General Authority for Audio and Visual Media, said that allegations of monopoly are under “thorough investigation and study.”

“We cannot be sure of this overnight,” he said. “Anyone who accuses the ministry or any of its employees of creating a foreign lobby to dominate the advertising market is speaking on their own account. The ministry cannot take into consideration every accusation that comes its way.”

Al-Maddah said that “while the foreign presence in the Saudi advertising market has contributed to the growth of the industry and helped Saudi youth learn the basics of the business for more than 20 years, this does not mean that there isn’t a need to nationalize jobs in a sector where the majority of employees are expats.”

He said Saudis avoid working in the sector because they find it hard to achieve client satisfaction.

“Such jobs need a high level of commitment, accuracy and professionalism. This is not to mention the high risks involved in working in such a field,” he said.

“The work environment in this sector needs highly motivated people who can handle high-pressure roles,” he said.

“There are many promising job opportunities for Saudi youth, with alluring salaries of more than SR12,000 a month. In addition, juniors can climb the career ladder quickly and make a lot more money,” he said.

“Within this industry, Saudis are most attracted to positions in graphic design, creativity management, abstract design, strategic planning, customer service and building advertisement campaigns,” he said.

He said that while these fields promise high incomes, undertaking such roles requires extensive knowledge of communication strategies and a comprehensive understanding of marketing and campaign design.

The competition watchdog has said that investigations aim to improve the sector’s performance, promote competition between small and medium-sized enterprises, ensure fair competition and combat monopoly practices.

Sources said that the initiative came following the council’s recent recommendation to conduct a full-scale study of the sector.

Recent studies estimate that spending on advertising exceeds SR3 billion annually Kingdom-wide.