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

Dubai: Saudi authorities have shut down an illegal operation in Riyadh that allegedly trained workers who had absconded from their sponsors to set up and run online stores for their own benefit, local media reported.

The site, located in the capital’s Al Batha district, was uncovered during a joint inspection campaign involving the Ministry of Commerce, the Ministry of Human Resources and Social Development and field enforcement officers from Riyadh police.

Authorities found that Asian workers were being trained at the premises to establish and manage e commerce businesses independently, in violation of Saudi regulations.

The operation was allegedly run by a foreign investor and two residents who were in violation of residency and labour regulations.

Preliminary investigations found that those behind the operation charged workers SR300 in return for what authorities described as a purported “international certificate” in e commerce.

The Ministry of Commerce said in a post on X that the workers found in violation of regulations had been detained. The two residents were referred to the relevant authorities, while the foreign investor was referred to the Ministry of Investment for further action.

Saudi regulations set a range of requirements for businesses engaged in e commerce, covering licensing, registration, disclosure and consumer protection.

Online businesses are required to meet regulatory requirements that can include commercial registration or appropriate freelance documentation and verification of the online store through the relevant authorities.

Businesses must also comply with applicable registration requirements of the Zakat, Tax and Customs Authority, including obtaining a tax number where required.

E-commerce operators are required to disclose key business information to consumers, including registration details, the name and address of the service provider and effective contact channels such as an email address, telephone number or instant messaging service for customer enquiries and complaints.

Online stores must also clearly display the total price of goods or services, including shipping, delivery charges and taxes, before payment is completed, as well as provide clear delivery or service fulfilment times and avoid misleading consumers.