Saudi Women Overturn Male Agent Rule
Media Line News Agency
May 09, 2009
Businesswomen in Saudi Arabia are now allowed to run their own businesses without a male agent, overturning a decree made in 2004 by the Ministry of Commerce and Trade prohibiting women from setting up a business without a male agent, The Media Line has learned.
Despite the law, more and more women have been managing their firms without the participation of a male agent, who was required to conduct any required dealings with government organizations, in addition to being granted full power in company affairs, acting with a power of attorney.
According to the 2004 decree, a Saudi woman could only own and operate a business if it catered solely to women. If, however, the business was aimed at both men and women, she could own the business, but needed to hire a Saudi male to manage the business.
In March, a campaign started by Alia Banaja, a businesswoman who, together with her sister, owns and manages the IT company 2 the Point in Jedda in eastern Saudi Arabia, began to pick up momentum. Banaja closed down her local business in order to lobby the ministry.
In addition to the campaign, the Khadija Bint Khuweilid Center for Businesswomen distributed a leaflet aimed at educating women on how to deal with the authority given to the male agent, the Saudi newspaper Arab News reported.
Among the instructions listed was one outlining how to establish a contract between the businesswoman and the manager specifying the duties and the extent of his control and responsibilities, and one telling the owner to oversee all the paperwork and legal contracts that pass through the manager´s hands in order to retain total control and avoid any future problems.
Saudi Arabia practices a strict form of Sunni Islam called Wahhabism, and restrictions in the kingdom are particularly harsh for women, who are banned from driving and cannot perform most tasks outside the house without being accompanied by a male guardian, usually a husband, a father or a close family member.
Jedda in the southeast is sometimes referred to by locals as the Paris of Saudi Arabia due to its more liberal-minded population. For example, the city has an annual film festival where men and women sit together, which is totally unheard of in other parts of the country.
For centuries, Jedda was a waypoint for pilgrims traveling to the holy cities of Mecca and Medina located to the northeast. However, it was not unti1 1869 with the opening of the Suez Canal in Egypt that the city´s growth took off.
Today, Jedda, which is home to some 2.5 million people, is considered to be the financial hub of the Saudi kingdom.
The financial importance of the city is reflected in the decisions taken in 2000 when the Jedda Chamber of Commerce and Industry established the Jedda Economic Forum, an annual gathering of leaders from government, business, finance, academia and media, which has grown to become one of the Middle East´s most prestigious and influential events of the year.
Despite the law, more and more women have been managing their firms without the participation of a male agent, who was required to conduct any required dealings with government organizations, in addition to being granted full power in company affairs, acting with a power of attorney.
According to the 2004 decree, a Saudi woman could only own and operate a business if it catered solely to women. If, however, the business was aimed at both men and women, she could own the business, but needed to hire a Saudi male to manage the business.
In March, a campaign started by Alia Banaja, a businesswoman who, together with her sister, owns and manages the IT company 2 the Point in Jedda in eastern Saudi Arabia, began to pick up momentum. Banaja closed down her local business in order to lobby the ministry.
In addition to the campaign, the Khadija Bint Khuweilid Center for Businesswomen distributed a leaflet aimed at educating women on how to deal with the authority given to the male agent, the Saudi newspaper Arab News reported.
Among the instructions listed was one outlining how to establish a contract between the businesswoman and the manager specifying the duties and the extent of his control and responsibilities, and one telling the owner to oversee all the paperwork and legal contracts that pass through the manager´s hands in order to retain total control and avoid any future problems.
Saudi Arabia practices a strict form of Sunni Islam called Wahhabism, and restrictions in the kingdom are particularly harsh for women, who are banned from driving and cannot perform most tasks outside the house without being accompanied by a male guardian, usually a husband, a father or a close family member.
Jedda in the southeast is sometimes referred to by locals as the Paris of Saudi Arabia due to its more liberal-minded population. For example, the city has an annual film festival where men and women sit together, which is totally unheard of in other parts of the country.
For centuries, Jedda was a waypoint for pilgrims traveling to the holy cities of Mecca and Medina located to the northeast. However, it was not unti1 1869 with the opening of the Suez Canal in Egypt that the city´s growth took off.
Today, Jedda, which is home to some 2.5 million people, is considered to be the financial hub of the Saudi kingdom.
The financial importance of the city is reflected in the decisions taken in 2000 when the Jedda Chamber of Commerce and Industry established the Jedda Economic Forum, an annual gathering of leaders from government, business, finance, academia and media, which has grown to become one of the Middle East´s most prestigious and influential events of the year.
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