Saudi Arabia: Government Ministers to be Banned From Being Board Members

Arab News, 12 September 2021: Saudi Arabia’s Government is going to ban Government ministers from being board members of private companies or leading boards of these companies.

They will only be able to lead them or be members of them if they have Government approval.

The aim is to reduce conflicts of interest in companies and improve governance.

Saudi Arabia Cabinet Decision No. A27/1421 will be amended to state ‘[No] minister is allowed to chair the board of any company or even serve as a member. This does not include those whose chairmanship or membership is by order of Prime Minister’.

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Saudi Arabia: Penalties Amended Under New Judicial Implementation Law

Saudi Gazette, 7 September 2021: The Saudi Arabian authorities are considering a new Judicial Implementation Law which will contain amended penalties for violations.

Under the Law, debtors will not be detained and electronic services will still be available to them.

Public sector employees who are involved in preventing or obstructing the implementation of verdicts will be jailed for up to five years. This will be considered an honesty offence.

In addition, there is a provision aimed at addressing the discrepancy between a travel ban order and a decision to terminate the residency permit or iqama of non-Saudi debtors.

Implementation procedures for court orders also ban financial dealings with those who have defaulted in carrying out financial rights.

Those facing proceedings under the Law should have their details announced as well as individuals who are suspected of financing them illegally.

Those who provide incorrect information will also commit an offence.

There will be a system to track illegal funds and the court will have more powers to track, interrogate, recover and invalidate these funds and transactions.

Orders on the seizure and enforcement of the funds owned by the State cannot be issued.

Similarly houses where the insolvent and their legal dependents live as well as their means of travel if their values do not exceed the amount of their solvency cannot be seized unless they are mortgaged to a creditor.

Verdicts on wages and salaries cannot be increased more than 50% of the total wage or salary in the verdict related to alimony debt. It cannot be more than 33.3% for other debts.

In both alimony and other debts, half of the total wage or salary will be allocated to the alimony debt and 33% to other debts.

If there are multiple debts, 33% of the other 50% will be distributed among the creditors in line with the Law and its Implementing Regulations.

An insolvent individual will also be able to continue practising their profession or their craft. They will also be able to carry out their personal obligations. The court will have to assess their solvency and decide on the amount of Government subsidies which can be extended to them.

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Saudi Arabia: Fines for Disregarding Passports Tightened

Okaz, 31 August 2021: Saudi Arabia’s Cabinet has announced it has approved an increase in the fines for individuals disregarding passports.

Under the new Cabinet Decision, a change of passport details or dismissing it will result in a fine of up to 100,000 Riyals.

Previously, fines for this offence were 5,000 Riyals.

The length of travel bans on offenders has also been extended from three to five years.

The same penalties will be applied on those who access the country from illegal terminals and those who enter or leave the country without a passport.

For full story see https://www.okaz.com.sa/news/local/2080557.

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Saudi Arabia: Articles of Incorporation Translation Service Launched

Saudi Gazette, 26 August 2021: Saudi Arabia’s Commerce Ministry has announced it has launched an articles of incorporation translation service.

The instant service will enable companies to obtain an electronic copy of the English translation of the articles of incorporation.

The aim is to reduce the time and effort in obtaining these documents.

The service can be accessed via https://mc.gov.sa/. Also reported in Al-Eqtisadiya on 26 August 2021. For full story see https://www.aleqt.com/2021/08/26/article_2159316.html

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Saudi Arabia: E-invoicing System Launched

Saudi Gazette, 25 August 2021: Saudi Arabia’s Zakat, Tax and Customs Authority has announced an e-invoicing system is going to be launched.

The FATOORAH system is aimed at promoting fair competition, tackling the black market and helping efforts to tackle anti-commercial concealment.

The system will be implemented in two phases.

The first phase will be launched on 4 December this year.

It will apply to taxpayers who are covered by the E-Invoice Regulation.

Tax invoices will have to be created and stored along with related debit and credit notices.

The second phase will be implemented gradually from January next year.

Taxpayers who are regulated by the FATOORAH regulation will have to stop issuing handwritten invoices, or invoices issued manually via text editing software. They will also have to be able to generate and store invoices electronically through a compliant e-invoicing system. This can be a cash register machine, a cloud system, or an enterprise resource planning software. The simplified tax invoices must include a QR code and tax invoices must include the VAT number of the buyer if the buyer is a registered VAT taxpayer.

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Saudi Arabia: Shipping Brokers Obliged to Issue Electronic Transport Document

Al Riyadh, 23 August 2021: Saudi Arabia’s General Transport Authority has announced all entities who are working as shipping brokers should issue electronic transport documents from 15 September 2021.

The Authority said the relevant entities can apply for the document through its electronic portal.

The documents will include the basic details of the broker including sender, receiver, description of shipped items and the cost of shipping.

The Authority added the electronic document will enable it to monitor the shipping processes.

The aim of the document is to improve the quality of transportation services and protect the rights of senders and receivers.

For full story see https://www.alriyadh.com/1903181.

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Saudi Arabia: Rules for Learner Drivers Clarified

Gulf News (United Arab Emirates), 19 August 2021: Saudi Arabia’s Traffic Department has clarified the rules for learner drivers in the Kingdom.

The minimum driving age in the country is 18. This is decided in line with the Islamic calendar.

Learners can drive at 17 under the Islamic calendar under supervision.

Saudi Arabia’s Public Security Department allows citizens and residents to obtain a driver’s license.

Medical check-ups have to be taken. This check-up includes blood samples, an eye test and a general check-up.

Applicants must also pass a theory test. This includes 20 questions.

In terms of practical training, applicants have to go to a driving school first to get an assessment and the number of training hours required will then be determined.

The driving school will provide learner drivers with a training course customised to their needs. This will be followed by an assessment.

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Saudi Arabia: Artificial Lakes Cannot be Created

Saudi Gazette, 12 August 2021: Saudi Arabia’s Environment Water and Agriculture Ministry has announced artificial lakes cannot be created on farms.

These lakes are usually created for investment or recreational purposes.

Anyone who creates an artificial lake will be committing a violation of the water regulations.

The regulations aim to protect water resources, ensure their sustainability, rationalise their consumption and prevent future misuse.

The Ministry added they do not grant licenses to dig wells or lakes.

They went on to say they will take action against any violators.

Among other penalties, the license to use groundwater could be revoked for repeat offences.

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Saudi Arabia: 100% Saudisation of Malls Comes into Force

Saudi Gazette, 4 August 2021: The decision to implement total Saudisation in closed commercial complexes came into force on 4 August 2021 in all regions of the Kingdom.

This follows a ministerial decision to make all jobs in all activities and professions within malls and mall management offices available exclusively to Saudi citizens. However, this excludes a limited number of activities and professions, such as cafes and restaurants where the rate of Saudisation will be 50% and 40% respectively. Hypermarkets and supermarkets ae also covered within the exempt activities..

The decision was the first of three issued by Minister of Human Resources and Social Development in April, which aims to create 51,000 jobs for Saudi nationals in the employment market.

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Saudi Arabia: Air passengers to be fined up to 500k Riyals for COVID-19 Travel Ban Breaches

Arab News, 2 August 2021: The Saudi Public Prosecution office has warned it will impose fines of up to 500,000 Riyals on passengers breaching travel ban restrictions by boarding flights to countries which are heavily affected by COVID-19.

Similar penalties will also apply to operators or owners of the means of transportation.

Officials added that severe punitive measures would be taken against travellers who failed to disclose that they had visited any of the countries which were listed on the Kingdom’s COVID-19 travel ban list.

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