JEDDAH, 1 June 2004 — Saudi Arabia yesterday approved a nine-point plan to create more job and business opportunities for women, tightened regulations to curb illegal proxy businesses, and gave the green light to three major foreign banks to operate in the Kingdom.
The decisions were taken by the Council of Ministers chaired by Custodian of the Two Holy Mosques King Fahd.
Under the nine-point plan, Information Minister Dr. Fouad Al-Farsy, said the Cabinet instructed government departments to license the businesses of women “in accordance with the rules and Shariah teachings.”
“Government departments serving women must open women’s sections within a year,” the Cabinet said.
The chambers of commerce and industry in the Kingdom have been told to set up committees of qualified women that would, in cooperation with the authorities, encourage the creation of new businesses and jobs for women.
But the Cabinet warned against using the facility to recruit foreign women. Rather the purpose was to make sure Saudi women are trained for jobs in any new businesses that are set up through it.
The Cabinet also instructed authorities to allocate public land for women-only industrial areas. The Manpower Development Fund must focus on training and employment of Saudi women, it added.
As part of the nine-point program, the Cabinet also urged the Labor Ministry to coordinate with the ministries of civil service and social affairs to help women work from home.
The Labor Ministry has been given a year to develop a full-fledged national plan for a female workforce. Other steps include restricting jobs in shops dealing in women-specific goods such as female underwear and cosmetics to women.
A review of the current maternity leave period will be the task of the Labor Ministry, the Commerce and Industry Ministry and the Council of Saudi Chambers of Commerce and Industry.
The three foreign banking majors to be licensed here are Deutsche Bank of Germany, BNP Paribas Bank of France and JP Morgan Chase Bank of the United States.
Al-Farsy said the meeting agreed to license all three to open branches in Riyadh. At the finance minister’s discretion they could also open branches elsewhere in the Kingdom.
Foreign banks operating here will be subject to the Kingdom’s banking, company and investment regulations, he added.
Deutsche Bank is a leading provider of financial solutions for private and business clients. A team from Deutsche Bank has already visited Riyadh to start operations in the Kingdom. BNP Paribas is a world leader in banking and financial services, offering retail banking and financial services mainly in France, Europe, the United States, the Mediterranean basin and Africa.
JP Morgan Chase is a major participant in the strongest and most vibrant capital markets in the world, operating across various businesses and geographies. “We are a leading global financial services firm with assets of $801 billion,” its website said.
The new anti-proxy business law, Al-Farsy said, provides for regular investigations of nominally Saudi-owned businesses to be conducted by the Investigation and Public Prosecution Commission (IPPC) instead of the Ministry of Commerce and Industry.
The final decision in violation cases will no longer be with the ministry but with the court of grievances.
The fine for proxy businesses has been increased from SR500,000 to SR1 million. Obstruction of the commission carries a fine of up to SR100,000. The IPPC has also been given powers to stop individuals accused of running a proxy business from leaving the Kingdom before their case has been settled.
Earlier the Cabinet meeting discussed Saturday’s terrorist attacks in Alkhobar and offered its condolences to the families of the terror victims. “King Fahd stressed that the terrorist acts committed by the deviant group will not affect the Kingdom’s strength, unity and position and the cohesion between its leadership and people,” Al-Farsy said.
“The Kingdom’s government and people will stand firm against those who try to undermine its security and stability and weaken its relations with other countries,” he said quoting a Cabinet statement.
The Cabinet yesterday appointed Dr. Khaled ibn Muhammad Al-Mirghalani director general of health in the Riyadh region, Dr. Saeed ibn Ayed Al-Zahrani, adviser to combat crimes at the Interior Ministry, Dr. Fahd ibn Abdul Aziz Al-Tuwaijeri, deputy governor of the General Organization for Technical Education and Vocational Training, and Saad ibn Abdullah Khunain adviser at the Education Ministry.
