Saudi Arabia: Businesswomen want male agent out

Hassna’a Mokhtar | Arab News

JEDDAH: The Ministry of Commerce and Industry confirmed yesterday that some of the ministry’s regional departments were violating a ministerial decree issued in April 2004. The decree states that Saudi women can set up businesses without needing a male agent. Nonetheless, businesswomen have reported that the decree was only implemented in a few locations in the country. The male legal agent is required to conduct affairs with various government organizations. He is granted full powers in company matters and acts with a power of attorney.

“The requirement for a legal agent is an obstacle for many businesswomen,” said Alia Banaja, chairwoman of the Jeddah-based IT company 2 The Point. “I closed down my local operations last week after demanding the removal of this requirement.” According to the decree, a Saudi woman can own and manage her business if her work employs and caters only to women. When, on the other hand, the business is aimed at both men and women, she can own the establishment but has to hire a Saudi man to manage the business.

In March, Banaja started a campaign with a group of businesswomen from the Eastern and Central regions calling for the implementation of the 2004 ministerial decision everywhere in the Kingdom (www.saudibwc.com). The next step was to close down their businesses if their demands for the removal of this requirement were not met. And finally, if closing businesses did not produce positive results from the authorities, they would appeal directly to Custodian of the Two Holy Mosques King Abdullah. They wanted to have the requirement for a male Saudi general manager canceled, even in the case of a woman’s owning a business that deals with both sexes.

Banaja and other businesswomen spoke to Hassan Aqeel, undersecretary at the Ministry of Commerce and Trade at the end of April. He restated the requirement for a male Saudi manager. “A businesswoman doesn’t need a male legal agent when she manages the work herself in an all-women establishment,” said Aqeel on April 26 to Al-Madina newspaper. “If her business employs or deals with men, then she has to hire a male to manage the affairs of these men.”

Contacted for further comments, Aqeel confirmed the newspaper report.

Nashwa Taher, board member at Jeddah Chamber of Commerce and Industry, told Arab News that the Khadija bint Khuwailid Center for businesswomen had printed a small leaflet to educate women on how to limit the authority given to a male manager. “The leaflet has guidelines businesswomen must use when hiring a manager for the business. It clearly defines what authority he is given,” said Taher.

She added that the center was now studying the reasons why a manager had to be hired. “We require more openness for businesswomen. Therefore, we want to update and change old procedures,” said Taher.

Lawyer Tariq Al-Ibrahim, who advised the Khadija bint Khuwailid Center on the legal aspects of the leaflet, said it was the women’s responsibility in the end to limit the male manager’s power. “All it needs is a contract between the businesswoman and the manager specifying the duties and the extent of his control and responsibilities,” he said, adding: “The owner also needs to oversee all the papers and legal contracts that pass through the manager’s hands in order to exercise total control and avoid any future problems.”