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The Ministry of Commerce monitored Asian expatriate violators who had fled their sponsors and were being trained to set up and operate online stores independently at an unlicensed premise in Riyadh’s Al-Batha neighborhood. The facility was managed by a foreign investor along with two violating residents who charged 300 riyals per trainee while claiming to issue an international certificate in e-commerce upon completion. In a joint operation with the Ministry of Human Resources and Social Development and Riyadh Police field units, authorities arrested the violating workers, referred the two residents to competent bodies and transferred the foreign investor to the Ministry of Investment for legal proceedings.
According to the Ministry of Commerce, the premise operated without required licenses for training activities, violating regulations designed to maintain order in the digital marketplace and prevent commercial concealment. The ministry stated that such setups allow unauthorized individuals to bypass sponsorship rules and legitimate business requirements while potentially exposing consumers to unreliable online vendors. Officials confirmed that all involved parties will face penalties under commercial, investment and residency laws.
This action occurs as Saudi Arabia’s e-commerce sector experiences substantial expansion, with the Saudi Central Bank reporting that transactions via the mada network reached a record SAR 30.7 billion in October 2025, a 68 percent rise from the prior year. A Mordor Intelligence assessment found the Saudi e-commerce market stood at USD 27.96 billion in 2025 and is forecast to reach USD 54.87 billion by 2031, expanding at a compound annual growth rate of 11.92 percent. Ministry of Commerce data placed the number of e-commerce commercial registrations at 43,854 by the close of 2025’s fourth quarter, reflecting 9 percent growth over the preceding period and a 15 percent compound annual rate since 2020.
The Ministry of Commerce has intensified oversight of digital commerce platforms and related services to align with Vision 2030 objectives that promote regulated economic diversification and consumer protection. Similar campaigns in recent months have targeted unlicensed operations across manufacturing and retail segments, resulting in closures, seizures and referrals for prosecution under anti-concealment statutes. The ministry has repeatedly urged businesses and individuals to secure proper licenses and avoid activities that facilitate regulatory evasion.
Penalties for unlicensed training and commercial concealment can include substantial fines, business closure, deportation of violators and public disclosure of names following final court rulings, according to standing regulations enforced by the Ministry of Commerce. In this instance, the foreign investor faces additional scrutiny from investment authorities regarding compliance with foreign ownership and operational rules. The ministry continues to encourage reports of suspected irregularities through its 1900 call center or official applications to support a compliant e-commerce environment.
