Saudi Arabia, Yemen sign consumer protection pact

Saudi Arabia and Yemen have signed a memorandum of understanding (MoU) to protect consumer interests, local media reports on Sunday.

The agreement is a step towards tackling the sale of counterfeit goods that are smuggled across the border from Yemen, Mohammed Al-Hamad, chairman of the Consumer Protection Agency (CPA), told Arab News.

“The discussions also helped us in the fight against counterfeit consumer goods that are being smuggled into the country across the border with Yemen and which are injurious to human health,” he said.

A recent survey, cited by the paper, estimated that more than SR41bn ($10.9bn) is lost annually due to commercial fraud, including the sale of fake goods. In the first half of this year, eight million counterfeit items were confiscated, some of them car spare parts which are blamed for thousands of traffic deaths a year.

One expert at the Jeddah Chamber of Commerce and Industry, told the paper that Saudi companies lose nearly SR50bn a year as a result of fraudulent trade practices.