Riyadh Cracks Down on Unlicensed E-Commerce Training

On 29 September 2026, authorities in the Al-Batha district of Riyadh uncovered an unauthorized facility that was training foreign workers to set up and run online stores without the required licences. The joint action involved the Ministry of Commerce, the Ministry of Human Resources and Social Development, and field-control personnel from Riyadh Police.

the workers had reportedly left their sponsors without authorization and were operating the stores for their own benefit. The facility charged SAR 300 per worker and allegedly promised an “international” e-commerce certificate in return.

The violating workers were detained and referred for legal action. Two violating residents were also referred to the relevant authorities, while the foreign investor behind the operation was referred to the Ministry of Investment. No final penalty amounts, court judgments, deportation orders, or business-closure details were publicly specified.

What legal online sellers need to know

The case is a reminder for anyone running an online store in the Kingdom to operate within the law. The Ministry of Commerce sets a new commercial registration at SAR 200 for a main registration and SAR 100 for a branch. A store must be added to the commercial registration within 30 days of opening.

Registration is completed electronically through the Ministry of Commerce, with payment made via SADAD or card. Online stores must use the appropriate commercial registration or other legally accepted documentation, disclose the operator’s registration details and contact information, show the total price including delivery charges and taxes before payment, and state delivery or service-completion periods.

Following these steps helps protect both sellers and buyers, and keeps businesses clear of the kind of enforcement action seen in Al-Batha.

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