JEDDAH, 19 December 2003 — Getting an authorized agent is the first requirement that Saudi women wishing to do business in the Kingdom must fulfill. The Ministry of Commerce demands that a woman hire and empower an authorized legal agent to represent her in all government offices and departments. This is essential since Saudi women are not allowed to visit government offices and departments on matters concerning their business. A businesswoman must hire someone to do that for her, and too often it is someone she does not know. Most women hire their brothers, husbands or a relative and it is all too common for even these to take advantage of the powers they are given.
A Saudi businesswoman said, “After my father died, I wanted to invest the money I had inherited from him. I had to overcome many obstacles just to get a license to practice business. One of them was finding an authorized agent. After a year of searching for someone that I could trust with my money, my brother told me that he knew someone who would be a good agent. I signed a contract with him and gave him a good salary. In the first year, he did a good job. In the second year, the company experienced huge losses. We found that he had stolen SR1 million. I fired him, and after he left, I learned that the company was deep in debt. In fact, after paying the debts, my total loss was just over SR3 million.”
Layla Ali said, “It is very strange to have to hire someone to look after a woman’s business. Women are independent in Islam. They are financially independent and they can conduct business on their own. Khadija, the wife of the Prophet Muhammad (peace be upon him), was an independent businesswoman. In light of this, the regulations of the Ministry of Commerce are very strange indeed. As a Saudi businesswoman, I find it very upsetting to leave my money and business in the hands of a stranger. We have all heard many sad stories of authorized agents stealing money from the women who employed them. I refuse to allow a strange man to speak on my behalf and play with my money as if I did not exist. My father is my authorized agent and carries out all my paperwork in government offices. I have endured a great deal in order to be a businesswoman, and I say very loudly that those authorized agents are limiting women’s capabilities. I demand that we be allowed responsibility for our businesses so we will not have to put up with embezzlement by an authorized agent.”
Hesa said, “Some of the rules of the Ministry of Commerce are not compatible with the Shariah. We have been granted our rights in Islam and we have the right to conduct our own business on our own. We established the Businesswomen’s Council at the Jeddah Chamber of Commerce a year ago. The formation of this council was an attempt to rectify the situation; however, there are still many problems. We managed to overcome some of them because of leniency of some officials. I must say very clearly that there are great barriers and harsh rules which only keep down Saudi businesswomen. We hope that these rules and barriers will soon disappear.” Nahed said, “We were very happy when Prince Naif, the minister of the interior, allowed women to have their own ID. We will be even happier when we hear of a decision to allow women to run their own businesses without authorized agents. Based on Islamic laws, we request equality with men in terms of running our business. Saudi women are capable of running their own business without anybody’s help.”
Merfat, a Saudi businesswoman in the Eastern Province, said, “Authorized agents harm women’s businesses. Most women find themselves at the mercy of a strange man who controls her. In some cases, he steals her money. If the authorized agent is her husband and there is a family problem, then the situation will obviously deteriorate. Having to have an authorized agent means that women’s freedom is limited. If women are allowed to be educated and to work, then they should be allowed to carry on their own businesses. There should be women’s sections in all government offices and departments. Far too many Saudi businesswomen have been bankrupted because of authorized agents.”
Amal Bin-Hamad began working three years ago. She graduated from Canada with a qualification in interior design. “Now I want to get a business license and establish my own company but I need an authorized agent to represent me in government offices and departments. Up to now, I have not found a man whom I can trust, and this not only puts my business on hold but also eats into my investment. I look forward to the day when we women will have the freedom to do things ourselves.”
Zaki Bin-Aboud also spoke about the adverse effects of the system. “It is another way of limiting women’s freedom. Most authorized agents are experts at embezzlement. I have suffered from them many times. I demand that all barriers in the way of Saudi businesswomen be removed because we cannot participate in national development if these harsh regulations remain in place.”
Ghada Al-Ghazawi said, “I think women would be much better at running their own business without anyone’s help. Most authorized agents are a burden. I do not think that there is anything wrong with women running their own business if what they do is compatible with the Shariah.”
Another businesswoman said, “I knew my authorized agent from work. He was a nice man with good morals. We agreed to marry, and my authorized agent became my husband. I gave him full powers and control of my money. I was not afraid of anything. After two years, he began to change, spending a lot of time away from home. Later, I discovered that he had married another woman. When I asked for a divorce, he did not hesitate to agree once he has stolen all my money.”
Sheikh Talha Tawfeeq, a legal consultant, was asked about the religious aspects of the problem. “Women are allowed to work in Islam without hiring an authorized agent. Women can work, practice business and manage their own businesses. If regulations in Saudi Arabia say that there must be an authorized agent, then it is to protect women’s interests because there are no women’s sections in government offices and departments in the Kingdom.”
