Business Corruption in Saudi Arabia

Companies operating or planning to invest in Saudi Arabia face a high risk of corruption. Abuse of power, nepotism and the use of middlemen ( wasta ) to do business are particularly common. There is an overlap between business and politics, and the latter is generally based on patronage systems. The Combating Bribery Law and the Civil Service Law criminalize various forms of corruption, including active and passive bribery ( baksheesh ) and abuse of functions , but the government enforces these laws selectively. No law regulates conflicts of interest , and some officials engage in corruption with impunity. The royal family and social elite heavily influence the oil and petrochemicals sectors. Gifts are regulated under Saudi law, but facilitation payments are not addressed.

February 2016
GAN Integrity Solutions