Article 2 of the Saudi Anti-Concealment Law
المادة 2 من نظام مكافحة التستر · الفصل الثاني: الجرائم والمخالفات
The article defines concealment as an agreement or arrangement through which one person enables a non-Saudi to carry out an economic activity he is not licensed to carry out, using the license of the person concealing.
Official text (Arabic)
This article has not been amended since the law was issued.
لأغراض تطبيق أحكام النظام يقصد بالتستر اتفاق أو ترتيب يُمكِّن من خلاله شخصٌ شخصًا آخر غير سعودي من ممارسة نشاط اقتصادي في المملكة غير مرخص له بممارسته باستخدام الترخيص أو الموافقة الصادرة للمتستر.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 2 explained in plain English
This article sets out the basic definition of concealment on which all the provisions of the Law are built. According to the text, concealment has specific elements:
- An agreement or arrangement: It need not be a written contract; it can be any arrangement between the two parties.
- Two parties: A person (the one concealing) enables another person who is non-Saudi. Under Article 1, a non-Saudi is a natural or legal person who does not hold Saudi nationality and is not treated as a holder of it.
- Carrying out an economic activity in the Kingdom that he is not licensed to carry out: Under Article 1, an economic activity is any activity aimed at making a profit that requires a license or approval from the competent authorities.
- Using the license or approval issued to the person concealing: That is, the non-Saudi operates under the cover of a license issued to someone else.
Note that the text limits this definition to "the purposes of applying the provisions of the Law", meaning it is the standard to be used when applying the articles of this Law.
Article 3 then sets out the acts that are offenses, including enabling a non-Saudi to carry out the activity for his own account by using the person's name, license, commercial register or trade name, and the non-Saudi himself carrying out the activity through the person who enabled him.
Anyone who has an arrangement with a non-Saudi and doubts whether this description applies to them is best advised to consult a lawyer who specializes in criminal and commercial cases.
Practical example
Saad holds a commercial register for a mobile phone repair shop in Jeddah. He agreed with a non-Saudi resident that the resident would run the shop, work in it for himself and keep its profits, in return for a fixed monthly sum paid to Saad. This arrangement enables a non-Saudi to carry out an economic activity he is not licensed to carry out, using the license issued to Saad, which is what the article describes as concealment.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 2 of the Saudi Anti-Concealment Law
What is commercial concealment (tasattur) under Saudi law?
It is an agreement or arrangement through which one person enables another, non-Saudi person to carry out an economic activity in the Kingdom that he is not licensed to carry out, using the license or approval issued to the person concealing.
Does there have to be a written contract for an act to count as concealment?
No. The article is satisfied by an "agreement or arrangement" and does not require any particular form.
Does concealment cover foreign companies?
Yes. Under Article 1, a non-Saudi includes a natural or legal person who does not hold Saudi nationality and is not treated as a holder of it.
More articles on Definition of Commercial Concealment
- Article 1
The article defines the key terms of the Anti-Concealment Law, such as non-Saudi, economic activity, proceeds and precautionary seizure.
يقصد بالكلمات والعبارات الآتية -أينما وردت في النظام- المعاني المبينة أمام كل منها: النظام: نظام مكافحة التستر. اللائحة: اللائحة التنفيذية للنظام. الوزارة: وزار
- Article 15
The article provides that any contract or act whose subject or purpose is concealment is void, without prejudice to the rights of good-faith third parties.
دون إخلال بحقوق الغير (الحسن النية)، يعد باطلًا كل عقد أو تصرف يكون محله أو غايته التستر.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.

