Saudi women investors should not allow their male relatives, including their husbands, from opening up businesses in their names because they could be held legally liable for various criminal offenses if things go wrong.

Businesswomen, legal specialists, consultants and economists issued this warning here recently. They said these women investors must document all their dealings with legal contracts to protect their rights.

Economist Fadhil Albuainain said that if women decide to register businesses they should be aware of all transactions, especially when they have delegated others to run them.

He said the handling of bank accounts is particularly important because unscrupulous managers might use these accounts to launder money or get involved in other illegal trading practices.

He said some men who are not lawfully able to open businesses are using their wives names to do so. He said men sometimes use these businesses to open others so that they can recruit expatriates and trade in visas.

He said women should follow up on their investments, even if they delegate the management to their husbands. Women should have full knowledge of all legal and financial matters.

Mdawi Al-Hassoun, a member of the Arab Businesswomen’s Council and the Council of Saudi Chambers (CSC), said this has become common practice in Saudi Arabia. Men are misusing the names of their female relatives to launch businesses. When things go wrong, women could be prevented from starting up their own enterprises, causing them a loss of income, she said.

Al-Hassoun said many women do not know that businesses have been opened up in their names. She stressed that the government and business bodies should educate women about this phenomenon. Women must protect their names and signatures to prevent forgery, she said. Businesswoman Nashwa Taher said many Saudi women investors registered with the CSC know nothing about their businesses. Many male government employees are using the names of their wives’ or female relatives to register companies, she said.

“When we call these women their husbands usually answer the phone, which proves that they own the investment.” There are efforts to address the situation of government employees being involved in private businesses, she said.

Taher said that this situation has distorted the statistics on women investment and business ownership in the country.

She called on various bodies to educate women about their rights. Women should also make sure they are aware of the dealings of their employees if they are not personally able to run them.

Bayan Al-Zahrani, a lawyer, said women could expose themselves to all manner of legal problems by allowing others to use their names, because the businesses could be set up for illegal activities.

Al-Zahrani advised Saudi women to educate themselves about the commercial system before starting any enterprise. They should also draw up contracts for people running businesses on their behalf, to protect them from any legal fallout.