E-invoicing will help combat commercial concealment in Saudi Arabia

The Saudi Zakat, Tax, and Customs Authority recently launched its Fatoorah e-invoicing project to implement a system allowing the smooth exchange and processing of invoices. (Shutterstock)
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Updated 09 September 2021
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E-invoicing will help combat commercial concealment in Saudi Arabia

  • E-invoicing provides great benefits for both large corporations and small businesses, helping to reduce costs and time spent processing and printing paper invoices

RIYADH: Advances in technology have seen electronic invoicing become an essential part of business structures.

The billing method provides great benefits for both large corporations and small businesses, helping to reduce costs and time spent processing and printing paper invoices.

E-invoicing also shortens payment cycles, improves accounts reconciliation, enhances compliance, cuts the amount of physical storage space required, prevents errors, limits losses and fraud, promotes fair competition, reduces tax evasion, and improves relationships between suppliers and customers.

In addition, it offers great support to micro, small, and medium-sized enterprises, ensuring they operate in a fair and competitive business environment that helps to achieve growth targets. And it backs up MSMEs when applying for financing from commercial banks by providing accurate financial information about them.

Governments in countries such as Saudi Arabia can benefit from e-invoicing too, particularly in combating the shadow economy and limiting commercial concealment practices (any illegal business operation that enables non-national individuals or companies to invest or engage in trading activities they are prohibited from).

Commercial concealment has been a problem in the Kingdom for more than seven decades and costs the Saudi economy up to SR400 billion ($106.7 billion) annually.

Last year, the Saudi commerce minister announced a new law to regulate commercial transactions, introducing strict penalties for violators that vary depending on the classification of each concealment act. The penalties include imprisonment for a maximum of five years and/or fines of up to SR5 million.

In March, the government announced a national program to combat commercial concealment aimed at encouraging individuals in breach of the rules to come forward and take steps to legalize their position in the market without fear of being hit with regulatory penalties.

The Saudi Zakat, Tax, and Customs Authority recently launched its Fatoorah e-invoicing project to implement a system allowing the smooth exchange and processing of invoices, credit and debit notes between buyers and sellers.

The initiative will be rolled-out in two phases, the first coming into force for all taxpayers (excluding nonresident taxpayers) on Dec. 4. Stage two will be implemented on Jan. 1, 2023, when taxpayers will be able to access all the necessary authority e-invoicing services.

It is expected that the project will have a tangible impact on the national economy by curtailing the shadow economy and tackling commercial concealment.

The Saudi government has done a great job in dealing with both these matters by not only issuing a new law but also allowing violators to rectify their mistakes without being penalized.

Forcing all selling outlets to use the electronic payment system in trading activities will not only offer consumers varied payment options but also support government efforts to combat commercial concealment.


Over 3k flights cancelled across the Middle East after attack on Iran by the US, Israel

Updated 01 March 2026
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Over 3k flights cancelled across the Middle East after attack on Iran by the US, Israel

RIYADH: US and Israeli strikes on Iran led to widespread airspace shutdowns in the Middle East, canceling and rerouting thousands of flights and paralyzing key international travel corridors.

Flight cancellations affected seven airports across the Middle East, including Dubai and Abu Dhabi in the UAE, Doha in Qatar, and Manama in Bahrain.

Emirates Airlines said in a statement: “Due to multiple regional airspace closures, Emirates has temporarily suspended all operations to and from Dubai, up until 1500 hrs UAE time on Monday, 2 March.”

A flydubai spokesperson said the situation is evolving, and the airline is closely monitoring developments while coordinating with authorities to adjust its flight schedule.

“Our teams are working diligently to implement comprehensive welfare for all affected customers. The safety of our passengers and crew remains our highest priority,” the spokesperson said.

He added: “We are currently experiencing a high volume of calls and appreciate our customers’ patience while our teams work to assist everyone as quickly as possible.”

Qatar Airways announced that the airport will remain closed until at least the morning of March 2.

“Qatar Airways flights to, and from, Doha have been temporarily suspended due to the closure of Qatari airspace,” the airline said.

It added: “Qatar Airways will resume operations once the Qatar Civil Aviation Authority announces the safe reopening of Qatari airspace.”

Saudia also said in an official statement that it had canceled a number of flights due to developments in the region and the closure of airspace.

The organization said the decision was taken in line with aviation safety and security standards, noting that its Emergency Coordination Center is closely monitoring developments with relevant authorities.

Saudia urged passengers to verify the status of their flights before heading to the airport and said guests would be notified of updates through the contact details associated with their bookings.

The carrier added that further information would be announced in a subsequent statement if available.

Air Arabia also said its flights were experiencing cancellations, delays, or rerouting as a result of the evolving situation and airspace closures.

Airlines cited airspace closures and safety concerns as the main reasons for flight disruptions, urging passengers to check official channels for updates as the situation develops.

Israeli airspace also remained closed on March 1st. Israeli airline El Al said it was preparing a recovery effort to bring home Israelis stranded abroad once the airspace reopened.

Travelers were either stranded or diverted to other airports on Feb. 28 after Israel, Qatar, Syria, and Iran as well as Iraq, Kuwait and Bahrain, closed their airspace.

After the UAE announced a temporary partial airspace closure, FlightRadar24 recorded no flights over the country.

The closures affected key hub airports in Dubai, Abu Dhabi, and Doha. Emirates, Qatar Airways, and Etihad, airlines that operate from these hubs, normally handle around 90,000 passengers daily, with even more traveling to other Middle Eastern destinations, according to aviation analytics firm Cirium.

Airports hit by attacks

Two airports in the UAE reported incidents as the government there condemned what it called a “blatant attack involving Iranian ballistic missiles” on Feb.28.

Dubai International Airport, the UAE’s largest and one of the world’s busiest, reported four injuries, while Abu Dhabi’s Zayed International Airport said a drone attack killed one person and injured seven others. Strikes were also reported at Kuwait International Airport.

Though Iran did not publicly claim responsibility, the scope of retaliatory strikes that Gulf nations attributed to Iran extended beyond the US bases that it previously said it would target.

Flight delays, cancellations are likely to continue

“For travelers, there’s no way to sugarcoat this,” said Henry Harteveldt, an airline industry analyst and president of Atmosphere Research Group.

“You should prepare for delays or cancellations for the next few days as these attacks evolve and hopefully end,” he added.

To avoid conflict zones, airlines are rerouting Middle East flights over Saudi Arabia, adding hours and fuel costs, which could push ticket prices higher if the tensions persist.

The extra flights will strain air traffic controllers in the Kingdom, who may need to slow traffic for safety. Meanwhile, countries that closed their airspace will lose out on overflight fees from passing airlines.

Mike McCormick, former head of air traffic control at the FAA and now a professor at Embry-Riddle Aeronautical University, said some countries may reopen parts of their airspace in the coming days once US and Israeli officials provide airlines with details on military flight zones and Iran’s missile capabilities.

“Those countries then will be able to go through and say, ok, we can reopen this portion of our space but we’ll keep this portion of our airspace closed,” McCormick said.

“So, I think what we’ll see in the next 24 to 36 hours is how the use of airspace evolves as the kinetic activity gets more well-defined and as the capability of Iran to actually shoot missiles and create additional risk is diminished due to the attacks,” he added.

But it is unclear how long the disruption to flight operations could last. For comparison, the Israeli and US attack on Iran in June 2025 lasted 12 days.