Saudi experts have warned against investing in projects that have not been properly licensed, according to a report.

 

The warnings come after the authorities initiated action against the promoter of the so-called “Kingdom’s Island”, a large-scale development with hotels and entertainment facilities in the eastern city of Al Khobar.

 

Mohammed Al Sufayan, the spokesman of Eastern Province municipality, told Arab News that the company that promoted the project did not submit any documents for project tender, and had put the Vision 2030 logo and Eastern Province Municipality logo in its promotional video without prior consent from the authorities.

 

He pointed out that when the company had approached the investment department in the municipality and presented the idea for the project, the officials there had guided the company to go through the official procedures for smooth completion of the project. 

 

The municipality officials also called upon the company CEO to put up the project for public tender. But the company did not submit the required documents for taking part in the tender, stated the report.

 

Abdul Hadi Al-Shammari, the head of the municipal council of Eastern Province municipality, said the promoters of the project would be held accountable for this action.

 

“We’re discussing this issue thoroughly before taking the next step," he stated.

 

He called upon the general public and businesses to make sure that the companies that were promoting their projects had proper licences.

 

Mohammed Al Hamad, former chairman of the Consumer Protection Association, called upon anyone who wanted to invest their money in a project to make sure that the investment project was legal and has been licensed properly.