JEDDAH, 26 May 2004 — New employment opportunities are opening up for businesswomen, said Alia Banaja, chairwoman of 2 The Point, an information technology firm, on the concluding day of the two-day Saudi Family Business Forum at Jeddah Hilton. “It’s tradition that is preventing women from working alongside men, not religion,” she said.
Banaja, who gave a presentation on exploring the changing role of women in family business, said family status, tradition and law were among the difficulties businesswomen faced. “It’s changing, however,” she added. Women are now allowed to work in designated sectors under strict rules.
The private sector is expanding its field for women workers. Saudi Aramco and Saudi Basic Industries Corporation (SABIC) already have independent departments for ladies, Banaja said.
Zaher Al-Munajjed, partner, Global Family Business Consultants, analyzed how Western and Far Eastern family business management models could be adapted to local companies. Culture is not a key factor that prevents the sharing of styles for family businesses worldwide.
“In fact, issues facing family enterprises are similar all over the world,” he said.
Family businesses are usually successful in the Kingdom, Al-Munajjed said, emphasizing that 99 percent of the 25,000 registered companies in Jeddah are family-owned enterprises.
The forum also dealt with the implications of WTO membership on family businesses here.
With stability and long-term focus, these businesses are viable formulas for sustainable growth.
“In most cases, there will always be a need for local partners, with or without being in the WTO,” Dr. Mazen Hassounah, general manager of Rana Investment Company, said.
Certain legal corporate structures like joint stock companies are a means and not an end, he said. Building expertise and know-how, efficiency and competitiveness are of vital importance under WTO, Dr. Hassounah said, adding that family businesses will no longer have the luxury of full independence. “Focus should be shifted from building names to building brands,” he concluded.
A presentation on capital needs and financing opportunities for family businesses marked the last session of the forum, which was organized by MEED in cooperation with the Jeddah Chamber of Commerce & Industry and the Jeddah Marketing Board.
