Saudi Gazette report
RIYADH — The Communications and Data Expertise Committee on the Riyadh Chamber has warned that native IT corporations are dealing with unfair competitors from overseas companies working in Saudi Arabia from overseas with out industrial registrations, licenses, or headquarters.
These corporations supply low costs that give them an illegal benefit and hurt licensed companies.
The committee additionally cautioned concerning the safety dangers of coping with such companies, together with the potential for knowledge leaks.
Suleiman Al-Ajlan, chairman of the committee, stated these corporations don’t bear the monetary obligations that licensed companies — Saudi or overseas — should meet, akin to taxes, zakat, authorities charges, and Saudization necessities.
He famous that this has negatively impacted gross sales for native corporations that can’t compete with artificially low costs, leading to financial drawbacks akin to capital outflow, weakened help for small and medium enterprises, and setbacks in Saudization and the hiring of nationwide expertise.
Al-Ajlan burdened that Saudi Arabia’s giant and open market is a pretty atmosphere for these corporations. “Some could also be unaware of the authorized mechanisms obtainable to enter the market formally, whereas others intentionally exploit loopholes, akin to contacting shoppers by social media, sending representatives on go to, vacationer, or Umrah visas for enterprise functions, or selling their corporations at commerce festivals by posing as guests.”
He added that whereas authorities entities don’t instantly cope with these companies, some licensed corporations subcontract tasks to unlicensed overseas operators, which constitutes a transparent violation of laws.
He warned that working with such corporations exposes knowledge to dangers of leakage, sale, or misuse in unauthorized industrial actions and even for extra harmful functions.
