The regulations for rectifying the status of Anti-Concealment Law (the Law) violators, which followed the August 2020 release of the Law, aim to provide Saudis and non-Saudis who practice economic activities in the Kingdom with the opportunity to rectify their status by 23 August 2021. If they do so before the deadline, they shall be exempt from the penalties stipulated in the Law, from the penalties resulting from the crime and proceeds thereof, and from paying income tax retroactively.

The regulations identify the options and mechanisms for status rectification and clarify the procedures for reviewing rectification requests by the Ministry of Commerce. They are available in both and .

Subject to fulfilling the regulatory requirements, the regulations outline the following options for rectifying one鈥檚 status in the Kingdom:

• Establishing partnership in the enterprise between the Saudi and non-Saudi parties
• Registering the ownership of the enterprise in the name of the non-Saudi party
• The Saudi continues to practice the economic activity by adding a new partner (Saudi or licensed foreign investor)
• The Saudi party disposes the enterprise by sale, assignment or dissolution
• The non-Saudi party obtains the Saudi premium residency by virtue of the Premium Residency Law and proceeds to rectifying their status
• The non-Saudi leaves the kingdom permanently after providing the required documents to the Ministry of Commerce

After the rectification request has been submitted, the Ministry will review the case and notify the applicant to complete the procedures of rectification within a period of 90 days from the date of notification.

The option to rectify one鈥檚 status in the Kingdom reflects the goals of Vision 2030 and is an important step for preserving the rights of business partners in Saudi Arabia.

We shall continue to keep you up to date on any further developments. In the meantime, our teams are available to discuss the regulations and provide you with further clarification.