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Fines for failure to disclose the beneficial owner in Saudi Arabia and details of the decision

Learn about the Minister of Commerce’s decision to impose fines of up to 80,000 riyals on those who violate the disclosure of the true beneficiary’s data, along with details of the corrective grace period and the mechanism for doubling the penalty.

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Fines for failure to disclose the beneficial owner in Saudi Arabia and details of the decision

Minister of Commerce Dr. Majid bin Abdullah Al-Qasabi issued a firm ministerial decree aimed at regulating the business environment and enhancing transparency in the Saudi market. The decree includes issuing warnings and imposing escalating fines on companies that violate regulations regarding the disclosure of "beneficial owners" data. This decision represents a significant regulatory step to ensure that commercial establishments comply with applicable laws and regulations in the Kingdom.

Warning mechanism and corrective grace period

The decision, published in the official gazette “Umm Al-Qura,” stipulates that a warning will be issued to any company that fails to disclose the beneficial owner's information or fails to submit the annual confirmation of that information for the first time. According to this decision, the violating establishment will be granted a 30-day grace period, starting from the day after the warning is issued, to rectify its situation and avoid financial penalties.

Classification of fines by capital

The decision clarified that if the specified deadline expires without correcting the violation, direct financial penalties will be imposed in direct proportion to the size of the company's capital, according to the following classification:

  • 4,000 riyals: for companies whose capital is less than 500,000 riyals.
  • 20,000 riyals: for companies whose capital ranges between 500,000 and less than 2.5 million riyals.
  • 40,000 riyals: for companies with capital ranging from 2.5 million to 5 million riyals.
  • 80,000 riyals: for large companies whose capital exceeds 5 million riyals.

Increased penalty in case of recurrence

As part of its regulatory deterrent, the decision included a clause stipulating that the fine would be doubled if the violation of failing to submit the annual confirmation is repeated within the year following the previous final violation decision. The decision also set a ceiling on the total fines, limiting them to 500,000 riyals, reflecting the Ministry's commitment to enforcing regulations.

Context of the decision and its economic importance

This move by the Ministry of Commerce aligns with the Kingdom of Saudi Arabia's ongoing efforts to achieve the goals of Vision 2030 related to improving the business environment and raising the Kingdom's ranking in international transparency indices. Disclosure procedures for the "beneficial owner" are a cornerstone in combating commercial concealment, money laundering, and the financing of terrorism, as identifying the beneficial owner helps prevent the exploitation of legal entities in illicit activities.

Strengthening governance and international compliance

The Kingdom is committed to the international standards issued by the Financial Action Task Force (FATF), and this decision is part of a package of legislative reforms aimed at raising the level of governance in the business sector. Obligating companies to disclose information accurately enhances the confidence of local and foreign investors in the strength of the Saudi economy and the integrity of its transactions, and reduces the risks associated with opaque financial dealings, thus creating a safe and attractive investment environment for capital.

The Saudi News Network first launched on Twitter via its official account, @SaudiNews50, and quickly became one of the Kingdom's leading independent news sources, thanks to its fast and reliable coverage of major local and international events. Due to the growing trust of its followers, the network expanded by launching its website, a comprehensive news platform offering regularly updated content in the fields of politics, economics, health, education, and national events, presented in a professional style that meets the public's expectations. The network strives to enhance public awareness and provide accurate information in a timely manner through on-the-ground reporting, in-depth analysis, and a specialized editorial team, making it a trusted source for anyone seeking up-to-the-minute Saudi news.

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A committee has been formed to ban asbestos in Saudi Arabia: details of the Cabinet's decision

The Saudi Cabinet has approved the formation of a permanent committee to ban asbestos. Learn about the dangers of this "silent killer," its link to cancer, and the importance of this decision for public health and the environment.

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A committee has been formed to ban asbestos in Saudi Arabia: details of the Cabinet's decision

In a decisive step reflecting the leadership's commitment to promoting public health and environmental safety, the Saudi Cabinet, in its session held in Riyadh last Tuesday, chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, approved the formation of a permanent committee to oversee all matters related to asbestos and monitor the implementation of its ban. This decision comes as a strategic preventative measure to mitigate the serious health risks associated with this substance, long known globally as the "silent killer.".

The history of asbestos: from "magical mineral" to imminent danger

Asbestos is a group of natural mineral fibers that gained widespread popularity during the 20th century in various industries, particularly in the construction sector, thanks to its unique properties of resistance to heat, electricity, and corrosion, as well as its strength and durability. This material was used extensively in thermal insulation, roofing tiles, water pipes, and car brakes. However, scientific evidence later revealed that inhaling fine asbestos fibers poses a direct threat to life, transforming it from a favored industrial material into an environmental and health hazard that must be eliminated.

Catastrophic health risks and alarming figures

The danger of asbestos lies in the fact that its fibers are microscopic and invisible to the naked eye. When inhaled, they settle in the lungs, causing severe inflammation and scarring that may not show symptoms for many years or even decades. According to the World Health Organization, all forms of asbestos are classified as carcinogenic to humans. This substance causes more than 200,000 deaths annually worldwide, in addition to causing chronic and serious diseases such as pulmonary fibrosis (asbestosis), lung cancer, laryngeal and ovarian cancer, and mesothelioma, which affects the lining of the chest and abdomen.

Professional workload and future challenges

Joint estimates from the World Health Organization and the International Labour Organization reveal a shocking reality: over 70% of work-related cancer deaths are attributable to occupational exposure to asbestos. Workers in the construction, demolition, maintenance, and asbestos mining sectors face the greatest risks, resulting in an estimated loss of 4 million disability-adjusted life years annually. Furthermore, smoking doubles the risk of lung cancer in individuals exposed to these fibers.

Towards an asbestos-free environment

International health organizations have affirmed that the only and most effective solution to eliminate asbestos-related diseases is the complete cessation of its use in all its forms. The Kingdom has preceded more than 50 countries worldwide in this approach, having already banned the material through stringent legislation. While safe, fiber-free alternatives currently exist, the greatest challenge remains the safe handling of older buildings containing asbestos. Their demolition or maintenance requires meticulous precautions to prevent the dispersal of fibers, a matter that the newly formed Standing Committee will regulate and monitor to ensure a healthy and safe future for the community.

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Sultan bin Sulayem relieved of his duties and Essa Kazim appointed as Chairman of Dubai Ports

Details of the dismissal of Sultan bin Sulayem from the chairmanship of DP World and the appointment of Essa Kazim and Yuvraj Narayan, amid international pressure and trends to strengthen governance in Dubai.

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Sultan bin Sulayem relieved of his duties and Essa Kazim appointed as Chairman of Dubai Ports

The Dubai government announced significant changes to the leadership structure of its ports and logistics sector, a strategic move aimed at strengthening governance and ensuring sustainable growth in one of the emirate's most important economic institutions. The decisions included relieving Sultan Ahmed bin Sulayem of his duties and appointing new leaders with extensive financial and administrative experience.

Details of new appointments at DP World

Under the new resolutions, Essa Kazim Chairman of the Board of Directors of DP World Group, while Yuvraj Narayan the role of Group Chief Executive Officer. This separation of the Chairman and CEO positions, previously held by Bin Sulayem, is part of the implementation of global best practices in corporate governance.

The changes also included the appointment of Abdullah bin Damithan as head of the Ports, Customs and Free Zone Corporation, succeeding Sultan bin Sulayem, indicating a comprehensive restructuring of the top leadership in this vital sector.

Background to the decision: International pressure and the Epstein case

These changes come at a sensitive time, as the company has recently faced increasing international pressure. According to Reuters reports, Sultan bin Sulayem's name has been linked to the late American businessman Jeffrey Epstein, who was convicted of sex crimes. This alleged connection has led to tangible economic repercussions, with British International Investment Corporation (BIC) and Canada's second-largest pension fund suspending new investments in the company, prompting a move to bolster confidence in the leadership.

New leadership experiences and the path to the future

The new leaders have a proven track record that supports Dubai’s economic direction; Essa Kazim currently serves as Governor of the Dubai International Financial Centre and Chairman of the Board of Directors of the Dubai Stock Exchange, and has more than 30 years of experience in the financial and banking sector, which enhances the company’s financial solvency and credibility with international investors.

For his part, Yuvraj Narayan has been a key pillar of DP World since joining in 2004, where he served as Chief Financial Officer and led strategic initiatives that contributed to the company’s expansion into 79 countries, making him the ideal choice to ensure the continuity of operations with high efficiency.

The strategic importance of DP World ports

DP World is a major driver of global trade, handling nearly 10% of international trade. Under the leadership of Ahmed Bin Sulayem, who has led the company for over four decades, DP World has undergone a remarkable transformation from a local port operator to a global logistics giant. These new appointments underscore the Dubai government’s commitment to maintaining this position, with a focus on transparency and good governance to ensure the flow of foreign investment and further strengthen Dubai’s role as a key hub in global supply chains.

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Riyadh Parking activates free managed parking in 3 new neighborhoods

Learn about the details of activating Riyadh Parking for free managed parking in King Salman, King Abdullah and Al Muhammadiyah neighborhoods starting from February 15 and how to issue permits.

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Riyadh Parking activates free managed parking in 3 new neighborhoods

The Riyadh Parking Project announced a new expansion step aimed at enhancing urban organization in the capital, by activating free managed parking in three vital residential neighborhoods: King Salman neighborhood, King Abdullah neighborhood, and Al-Muhammadiyah neighborhood. This decision is scheduled to come into effect starting from February 15.

Context of urban development and quality of life

This announcement comes amidst the major transformations Riyadh is undergoing as part of the Kingdom's Vision 2030, specifically the Quality of Life Program. The capital is striving to address the traffic challenges resulting from population density and rapid urban growth. The problem of haphazard parking and vehicle congestion within residential neighborhoods—especially those adjacent to commercial areas—is one of the most prominent issues troubling residents, prompting regulatory intervention through the "Riyadh Parking" project to ensure smooth traffic flow and preserve the city's aesthetic appeal.

Activation details and benefits offered to residents

The project management explained that this step reflects a qualitative shift to a broader operational phase, directly aimed at protecting the privacy of residential neighborhoods and preventing vehicles from spilling over from busy commercial streets into quiet residential areas. Riyadh Parking confirmed that the new system carefully considers the social needs of residents, offering the following advantages:

  • Simplified family permits: The possibility of issuing free residential permits for first-degree relatives (parents and children) valid for a full year and renewable, by adding the resident’s address as an additional national address in the application.
  • Guest visit management: The system allows residents to issue visitor permits with high flexibility, whether for private visits (less than 20 vehicles) or public invitations for large events that do not require entering data for each vehicle, making it easier to host guests without the hassle of searching for parking spaces.

Past successes and future plans

The decision to expand into the three new neighborhoods was based on the tangible positive results achieved in previous phases, which included the neighborhoods of Al-Wurud, Al-Rahmaniyah, Al-Muruj, Al-Ulya, and Al-Sulaimaniyah. Statistics revealed the issuance of over 40,000 residential and visitor permits, reflecting the local community's engagement and desire to regulate their residential environment. These measures have previously contributed to improving the urban landscape and significantly reducing instances of illegal parking.

Looking ahead, Riyadh Parking confirmed that this activation is part of a comprehensive strategic plan extending until 2026, which will cover a larger number of neighborhoods in central and eastern Riyadh, to ensure an organized and comfortable residential environment for all residents of the capital and its visitors.

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