RIYADH: Two Arab expatriate brothers have been arrested in the Al-Ahsa region for running a building materials firm in violation of the anti-commercial fraud law of the country.

According to an official from the Ministry of Commerce and Industry (MCI), its inspectors found that the two were running the company under the name of a citizen with an understanding between the two parties.

If found guilty, the violators are subject to a maximum of two years’ imprisonment and a fine of SR1 million. The commercial license of the party could be suspended for five years and the convicted expatriates will be deported on finishing the jail term.

Describing it as a violation of the Anti-Commercial Concealment Law, authorities have referred the case to the Bureau of Investigations and Public Prosecution Authority. Subsequently, the case will be referred to the Bureau of Grievances for the final verdict.

During the inspection of the sites, MCI inspectors found a number of documents proving that the expatriates were managing the stores as if they were the real owners and they were operating the bank accounts.

The official said it was detected during the inspection that the citizen and the expatriates signed business agreements and lease contracts. “This is contrary to the provisions of the Anti-Commercial Concealment Law,” he said.

According to the law, every Saudi citizen or foreign investor who enables a non-Saudi to do business for his own account is a violator, whether through using the trade name, license or commercial registration or any other way.

The first article of the law states that It is not permissible for non-Saudis in all cases to exercise or invest in any activity, if he is not authorized to exercise or invest under the Foreign Investment Law or other systems, regulations and decrees.

The MCI has urged citizens to report cases of commercial concealment with substantial proof, as the ministry grants a financial reward to the informant, with an amount not exceeding 30 percent of the value of the fines collected.