Commercial concealment has become a major phenomenon to a large segment of Saudi citizens. It formed economic pressure on Saudis and created a non-competitive situation to them. The government of Saudi Arabia has and still trying to address this phenomenon, but its efforts were not successful and the problem still continues to grow. Thus the importance of this issue has been raised because of its connection with the invisible economies. This requires governmental intervention to address this phenomenon because of its negative consequences on the economic , political, social, and legal aspects in Saudi Arabia.
The negative effects of commercial concealment on Saudi economy - for example, are : the transfer of profits abroad, illegitimate competition against Saudi citizens who own medium and small enterprises, and the increase of commercial fraud conditions.
It has been noticed from previous studies that the following activities are the most business domain involved in commercial concealment: building materials, electric and sanitary fittings, foodstuffs , spare parts, shipment agencies, shops selling computer, communications, ready-made garments, stationeries , cosmetics, gas stations and cafes.
Based upon that, the government of the custodian of the Two Holy Mosques in fighting the phenomenon of the commercial concealment, a noble royal decree - number 49 - was issued dated 16/10/1409 H, with the approval on fighting commercial concealment. To serve the society , KAU established this chair to study this phenomenon from political ,social, legal, and economic aspects.