The parallel global market of counterfeit products is estimated at over $700 billion, of which $50 billion is in the Arab world, $7 billion in the Gulf region, and $4 billion in Saudi alone, said an industry analyst.

Abdullah bin Mohammed Al Arifi, chief executive officer of International Trademark World Company, gave this information after signing an MoU with Saudi Customs Authority, aimed at stepping up the campaign against commercial fraud and counterfeiting.

International Trademark World (ITMW) is a leading organisation engaged in the fight against commercial fraud, counterfeiting and trademarks protection in Saudi Arabia.

“We have chosen ITMW as a partner primarily for its experience in the fight against fraud, and also because it represents a number of brands affected by this phenomenon, and therefore shares our concerns,” said Ibrahim Bin Suliman Al Mousa, director general of administrative development department - Saudi Customs Authority.

This MoU envisages provision of technical consultancy by ITMW to Saudi Customs in the field of commercial fraud and counterfeiting, including providing early information on spurious goods as well as training and expertise on identifying fakes from originals, across various product categories.

“ITMW has also undertaken to furnish Saudi Customs with information on new developments in the field of commercial fraud and counterfeiting, locally and globally, detailed statistics of fake and bogus products, brands affected, such as Nokia, Toyota, Mercedes, Bosch, Mazda and others,” said Arifi.

“We are conducting market studies, monitoring and tracking fake and counterfeit products, and traveling across the kingdom in search of brand infringements on an ongoing basis.”

Arifi pointed out that with the growth of globalisation, the flow of products between markets has become easier, which has also facilitated counterfeiting and trade of fake products by unethical traders.

“The existence of counterfeit products in the market is a challenge to trademark owners, as it undermines the credibility of the brands themselves and is also a serious threat to consumers’ health, safety and well-being. Such practices cause potential loss of profits for both the manufacturer and importer,” he added.

'Saudi Arabia suffers more risks from commercial fraud and counterfeiting than other countries in the region because of its large market size, which is very attractive to counterfeiters.'

'This also prompted the government to set up the Consumer Protection Society, which has played a complementary role with others such as Saudi Customs and Ministry of Commerce and Industry to fight against this phenomenon,' he concluded.-TradeArabia News Service