Network Marketing in Saudi Arabia is it legal? and Are there any MLM companies in Saudi Arabia?. Also, Direct selling companies in Saudi Arabia are working fine or banned. So to know complete details. Many people search for top direct selling companies or Network Marketing companies in Saudi but Are network marketing legal in Saudi Arabia?.
The world's best MLM companies like Amway, Oriflame, Forever, Qnet, and more, are banned or not in Saudi Arabia. In addition to this, In this article, we will know all details related to MLM in county with official information.
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Saudi Arabia is an important holy city Mecca is located here where millions of people from all over the world gather. So it was necessary to protect the nation from Illegal and Fraud MLM companies from Saudi.
Therefore, let us know the common questions that are asked by many consumers and MLM users.
MLM Marketing in Saudi Arabia
MLM in Saudi Arabia was growing very fast in 2018, but due to many activities by MLM companies was an illegal strategy to gain profits. Like most companies are promoting and doing activities like deceiving, cheating, fraud, Pyramid, Ponzi, money laundering, and manipulating.
If you want to know more about Pyramid Schemes and Why it is Illegal in many countries visit the Difference between MLM and Pyramid Schemes.
So, now you make the question -
Is network marketing legal in Saudi Arabia?
Under a resolution, The Ministry of Commerce and Investment (MCI) in Saudi Arabia has banned all MLM companies in Saudia Arabia, direct selling, and network marketing industry from Saudi Arabia. Because this world's best and top MLM companies like Amway, Mary Kay, Oriflame, Forever, and Herbalife cannot operate as MLM companies in the country.
But, you can see their MLM product in Saudi Why?
How do Direct selling companies sell their products in Saudi Arabia?
The Companies can sell their products by online selling method instead of MLM like E-commerce. Basically, MLM companies in Saudi cannot operate and run their MLM compensation and plans. But instead they can directly sell their products using online selling methods.
Online selling of products is completely legal in Saudi because it does not include any MLM plans structure like a binary system, upline commission, direct joining, and all.
I hope you understood what I am trying to explain.
Now, another question which is very popular among people is related to Qnet company, so let's check that.
QNET in Saudi Arabia
Qnet MLM company in Saudi was the No 1 company in Saudi Arabia before the government banned it in 2012. It was the fastest-growing network marketing or direct selling company in Saudia Arabia many users love their products and business.
Is QNET legal in Saudi Arabia?
Like other MLM companies in Saudi Arabia, Qnet is banned in Saudi Arabia also MCI has banned QNet marketing activity in Saudi Arabia. There was a strict investigation of QNET members and the company.
According to Official Minister -
QNet marketing activity aims to mislead and deceive dealers and clients with quick profit. Therefore, they try to raise money illegally by claiming that they are investing such money. This kind of activity is considered illegal because it depends on deceiving, cheating, fraud and manipulation
On 1 September 2018, the Ministry of Commerce & Investment in Saudi Arabia had issued a warning against QNet saying that its activities are prohibited in the country. After investigation, (MCI) arrested a group of four persons one from Gulf Cooperation Council (GCC), a Saudi citizen, and two Saudi women.
MCI had said in a release -
“The defendants were involved in the coordination and making the necessary arrangements for QNet activities. Such as reserving hotel halls and sending invitations to clients to attend the training on QNet marketing activities. Upon raiding the site, MCI inspectors found 20 members of both sexes attending the training, as per the invitation given to them by the four organizers. It has been found that the attendants have paid more than Saudi Riyal (SR)200,000 in cash or as a remittance to the organizers' bank accounts. This is besides paying SR30 for each attendant.”
I hope everything is clear about MLM companies in Saudi Arabia. Also, questions related to direct selling companies in Saudia Arabia.
In addition, QNET Saudi Arabia details common reasons about Qnet is banned in Saudi Arabia.
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