Jeddah-The Saudi Ministry of Commerce and Investment warned not to be dragged behind suspicious calls for transferring money via the internet, saying this might lead to huge financial losses.
MCI warnings included FOREX online trading and sending money to non-confidential companies to invest funds amidst temptations of making easy fortune.
Economists and bankers pointed out that the ministry took this step as a result of the spread of a phenomenon led by foreign companies on promoting gold and shares investment.
Experts assured that these preventive procedures will reinforce confidence in the market, grant investors more safety and save them from illegal practices that will cause financial losses.
Mohammed Alnafi, head of Committee on Financial Securities at Jeddah Chamber of Commerce, said that the decision not to deal with unlicensed brokerages has significant short-term and long-term dimensions on the money market.
Alnafi added that the risks of dealing with unlicensed brokerages lie in the absence of guarantees on the rights of possible victims.
From his part, banker Abdulrahman Alahmad noted that the Saudi Capital Market Authority and the financial brokerage firms in Saudi Arabia have a transparent system and provide the services of an authority to settle any possible conflict.
The Saudi Capital Market Authority warned unlicensed companies against carrying out operations in Saudi Arabia.