Crafts and Handicrafts System: Prohibition of Counterfeiting and Mandatory National Registry

In a historic move aimed at reshaping the cultural and economic landscape of Saudi Arabia, the Council of Ministers approved the Handicrafts and Traditional Industries Law , marking a pivotal turning point in the preservation of the Kingdom's intangible national heritage. This decision will enhance the status of Saudi artisans and protect their products from unfair competition, establishing a comprehensive legal framework to ensure the sustainability of this vital sector.

Vision context and economic dimensions

This system cannot be understood in isolation from the objectives of the Kingdom's Vision 2030 , which has placed great emphasis on the culture and heritage sector, considering it a pillar of soft power and a vital source of economic diversification. For years, the local market has suffered from the influx of imported commercial products that imitate Saudi heritage with low quality, harming local artisans. Therefore, the new system aims to restore balance to the market, transforming handicrafts from mere traditional hobbies into a promising national industry that contributes to the GDP and supports the growing tourism sector.

National Registry: The Legal Gateway for Craftsmen

Under the new system, the Heritage Authority, in coordination with the Ministry of Culture, became the official umbrella organization and primary regulator for the sector. A key feature of this regulation is the establishment of the "National Register of Artisans ," which will serve as a comprehensive reference database. The system mandates that all practitioners register in this register to obtain a "craft license." Engaging in any commercial activity or marketing of handcrafted products without this license is prohibited, thus ensuring the quality of the output and the reliability of the source.

Banning the import of counterfeit goods and protecting the genuine product

Perhaps the most impactful clause in the system is that relating to trade protection; the legislation explicitly prohibits the importation of specific types of handicrafts or the manufacture of counterfeit versions thereof. This protectionist measure aims to:

• Preventing the market from being flooded with cheap commercial copies that obscure national identity.
• Enhancing the market value of authentic Saudi products locally and globally.
• Encouraging entrepreneurs and investors to enter the handicrafts sector.

Corrective grace period and incentive bonuses

one-year grace period from its effective date to rectify their legal status. The legislator did not stop at the regulatory aspect, but also approved a package of incentives, including:

• Providing incentive rewards to outstanding craftsmen.
• Establishing villages and craft complexes that serve as tourist and production destinations.
• Supporting the establishment of specialized associations and classifying crafts within small establishments to facilitate financing and support.
• Activating export channels to global markets to ensure Saudi crafts have access to foreign markets.

Oversight and deterrent penalties

To ensure compliance, the system imposes strict penalties on violators, with specialized committees reviewing the violations. Financial penalties can reach 20,000 riyals , with the possibility of doubling the fine for repeat offenses within three years. Administrative penalties also include removing the name from the national registry for up to five years, or suspending and revoking the license. However, the system guarantees the right to appeal to the Administrative Court, thus reinforcing the principles of fairness and transparency.

The Minister of Culture is scheduled to issue the executive regulations for the system within 120 days, so that it will come into effect after a similar period from its publication, thus inaugurating a new era for Saudi handicrafts.