Saudi Arabia busts illegal Riyadh centre training absconding workers to run online stores

Saudi authorities have dismantled an illegal operation in Riyadh that allegedly groomed workers who had absconded from their sponsors to launch and run online stores for their own gain, according to local reports. The illicit site, situated in Al Batha district, Riyadh, was uncovered during a joint inspection by the Ministry of Commerce, Ministry of Human Resources and Social Development, and Riyadh police enforcement officers.

It was discovered that Asian workers were being trained at the premises to independently establish and manage e-commerce businesses, contravening Saudi regulations. The operation was allegedly orchestrated by a foreign investor and two non-compliant residents. Preliminary investigations revealed that the operators charged workers SR300 for a purported "international e-commerce certificate."

The Ministry of Commerce announced that the violators were apprehended, while the two residents were handed over to their respective authorities, and the foreign investor to the Ministry of Investment for further scrutiny. Saudi regulations stipulate stringent requirements for e-commerce businesses, including licensing, registration, disclosure, and consumer protection.

Online enterprises are mandated to adhere to commercial registration, freelance documentation, tax number acquisition, and transparent disclosure of business information to consumers, including contact details for inquiries and complaints. Additionally, they must exhibit the total cost of goods/services, including shipping, delivery charges, and taxes, before finalizing payments, as well as communicate clear delivery or service fulfillment timelines and refrain from misleading consumers.