JEDDAH, 17 November 2002 — Saudi women’s bank deposits worth more than SR100 billion remain idle in their accounts being unable to invest them in businesses or projects as a result of restrictive rules and regulations, Al-Madinah Arabic newspaper reported yesterday.
“Some economic studies have estimated the bank balance of Saudi women at more than SR100 billion, which remain frozen in banks as women are not allowed to open shops or invest in many business activities,” the Arabic daily said.
Chambers of commerce and industry have initiated consultations to present a working paper to the Commerce Ministry on the issue. The paper is expeccted to request the government to allow women having considerable financial deposits to open businesses, Al-Madinah said.
“The new proposal by the chambers seeking the ministry’s approval to allow private sector employees, students and women to open commercial registrations will help establish a large number of new businesses and create new job opportunities for Saudis,” the paper said.
The chambers’ move coincides with a plan of the Saudi Arabian General Investment Authority to open a one-stop investment window for women investors to attract their huge deposits.
Saudi businesswomen have criticized the ministry’s unfavorable regulations. In a recent report, which was also published by Al-Madinah, they claimed that such rules were to blame for the flight of at least SR21 billion in capital to foreign countries.
“Incentives for investment in neighboring countries on the one hand and various problems in their own country on the other have forced Saudi businesswomen either to invest abroad or keep their money in banks,” the paper quoted the businesswomen as saying.
Najoud Shadoukhi deplored the role of the Commerce Ministry and the local chambers in complicating investment procedures. Mirfat Al-Jumaie urged authorities to repeal a law requiring a male agent to represent businesswomen. “We should get freedom to follow up paperwork in government departments and take care of our businesses,” she added.
Reacting to the complaints, Mohammed Abdullah Al-Shareef, acting secretary-general of the Jeddah Chamber of Commerce and Industry, said the ministry as well as the chambers always encouraged investment by Saudi women. He said more reforms would be introduced soon to encourage domestic and foreign investors.
There are a large number of businesswomen in Saudi Arabia. Women also hold responsible positions in government agencies and private firms. A recent study showed that the majority of heirs to family-owned businesses in the country are women — a fact that calls for greater involvement by Saudi women in managing business enterprises both directly and indirectly.
Many family-run firms are among the largest enterprises in the country in terms of assets, operations and manpower. There are at least 460 such establishments.
Alia Banajah, a shareholder of Banajah Imports Company, told Arab News that her company has assigned female members of the family to various managerial tasks in order to prepare them to assume greater responsibilities in the future. She hoped that regulations pertaining to women’s business activities would be changed allowing Saudi women’s direct involvement before Saudi Arabia joins the World Trade Organization.
Abdul Majeed Banajah, a prominent businessman, supported women’s active involvement in business activities, but without violating Shariah. Maha, daughter of renowned Saudi businessman Ahmad Hassan Fitaihy, said she has become a board member of the Fitaihy Holding Company. Fitaihy emphasized the need to train women to assume managerial positions.
Mohammed Abdullah Al-Jomaih, agent for General Motors in the Kingdom, gave his own reasons for his daughters running businesses within the parameters set by Islamic teachings.
Faisal Al-Anqari said the role of a male agent would prevent businesswomen from directly supervising their businesses.
Majed Gharoub, a prominent lawyer and attorney, said Islam has granted woman the right to own and manage her business. “As long as women have the ability to run their own businesses, complying with Islamic regulations, I do not see any problem,” he added.
Meanwhile, a large number of businesswomen in the Eastern Province have called for the establishment of a special committee at the chamber to look after their interests. Fowziya Abdul Aziz Al-Tayyeb said many women quit their businesses as a result of the chamber’s lack of cooperation.
