RIYADH, 23 June 2003 — An on-going survey of Riyadh-based businesses nominally owned and run by businesswomen reveals that some are actually run by male government employees.
“There are 3,193 businesses in Riyadh that are owned by women. But so far we have discovered more than 100 such units that are run by men on behalf of their wives or daughters. We don’t know the actual numbers, since it is an on-going study,” Huda Al-Jeraisy, head of the cultural committee at the Riyadh Chamber of Commerce and Industry, told Arab News.
She said that during their telephone survey, researchers tried to contact the actual owner in order to establish the legal status of ownership. The legal requirement of having a man upfront is responsible for the flight of at least SR21 billion capital abroad, published figures reveal.
Huda said the committee planned to make a representation to the Riyadh Chamber of Commerce and Industry over the anomaly since it has encouraged government employees to set up their own business in the name of their wives. Such a practice is illegal as government employees are barred from engaging in any business activity.
Businesswoman Mirfat Al-Jumaih, in a statement to Al-Madinah newspaper, called on the authorities to repeal the law requiring the male agent to represent businesswomen.
Nada Al-Fayez, an economic researcher and women’s rights activist, told Arab News that there was an urgent need for reforms both at the organizational and regulatory levels. While she welcomed the decision of the Riyadh Chamber of Commerce and Industry to give representation to businesswomen, she felt RCCI is implementing the decision in an undemocratic manner.
Nada said the RCCI’s cultural committee was set up without elections when, according to her, 2,500 businesswomen wanted to vote. She said women must have rights equal to businessmen in the RCCI to vote and elect those who represent them in its 12 sub-committees. “I was delighted over the RCCI’s decision to set up the cultural committee. Unfortunately, its members were selected rather than elected. This is against the law,” she said.
