Nawal Al-Maymani

Saudi women whose fathers are prominent businessmen or hold important positions in the government or private sectors claim it has been easier for them to establish and operate their own businesses. Why? Because “wasta” lessens the bureaucracy for them to obtain a license and complete other requirements. “Wasta” is an Arabic term for resorting to personal contacts to receive special treatment over those who do not have such connections.

“It’s been nine months since I applied for a license,” said 28-year-old Noura Abdulrahman, who wants to open an advertising company. “If I had wasta, it would have taken a couple of weeks if not days.”

In comparison, Sabah Ahmed, 34, established her beauty salon a year and a half ago. Due to her husband’s connections, she obtained the license in no time.

“It was easy because of my husband’s wasta. I received my license in three days,” said Sabah.

But the biggest obstacle to female entrepreneurs remains unsolved. Businesswomen must hire a male manager to conduct affairs with various government organizations and administer the business. This condition came in April 2004 when a ministerial decree stated that when the business is aimed at both men and women (open for the public), the businesswoman can own the establishment but she has to hire a Saudi man to manage the business. On the other hand, she could own and manage her business if her work employs and caters only to women, which was not the case before as women were required to have a male legal agent in all cases.

This March, Aliaa Banaja, chairwoman of the Jeddah-based IT company 2 The Point, started a campaign with a group of businesswomen from the eastern and central regions calling for the implementation of the 2004 ministerial decision everywhere in the Kingdom (www.saudibwc.com). They also wanted to have the requirement for a male Saudi general manager canceled, even in the case of a woman’s owning a business that deals with both sexes.

The campaign urged the Ministry of Commerce and Industry to confirm that some of the ministry’s regional departments were violating the ministerial decree. Banaja and other businesswomen spoke to Hassan Aqeel, undersecretary at the ministry at the end of April. He restated the requirement for a male Saudi manager.

“If her business employs or deals with men, then she has to hire a man to manage the affairs of these men,” said Aqeel on April 26 to Al-Madinah newspaper.

The Khadija bint Khuwailid Center (KBKC) for businesswomen at the Jeddah Chamber of Commerce and Industry (JCCI) had printed a small leaflet to educate women on how to limit the authority given to a male manager. “The leaflet has guidelines businesswomen must use when hiring a manager for the business. It clearly defines what authority he is given,” said Nashwa Taher, board member at JCCI.

She added that the center is currently studying the reasons why a manager had to be hired. “We require more openness for businesswomen. Therefore, we want to update and change old procedures,” said Taher.

Lawyer Tariq Al-Ibrahim, who advised KBKC on the legal aspects of the leaflet, said it was the women’s responsibility in the end to limit the male manager’s power. “All it needs is a contract between the businesswoman and the manager specifying the duties and the extent of his control and responsibilities,” he said, adding: “The owner also needs to oversee all the papers and legal contracts that pass through the manager’s hands in order to exercise total control and avoid any future problems.”

Al-Ibrahim shared with Arab News some of the problems women are subjected to when a manager runs her work. According to regulations, the manager must be an unemployed Saudi man who does not own or run any business.

“It’s not easy hiring a man to work as a full time manager without him asking for a high salary,” he said. “It’s not convenient especially if the woman is just starting her business.”

He talked about how some of these managers take advantage of the sponsorship system. The manager could sponsor someone else either to buy a car or recruit a foreign worker using the businesswoman’s company. The manager could leave the company and the sponsored person might fail to pay his dues.

“When contractors start claiming their money, they won’t look for the general manager,” said Al-Ibrahim. “They will seek the business owner. She will be in trouble.”

Al-Ibrahim stressed on the fact that businesswomen must supervise their businesses closely in order to prevent problems from happening.

“Loose money tempts people into theft. I don’t think women are alone in suffering the consequences of hiring a general manager. Even men who don’t keep a close eye on their enterprise leave room for corruption and problems,” said Al-Ibrahim.

24-year-old Wala Al-Sharif, president of JIDA Interior Designs, said that her beginning was a bit difficult as she was the only woman among other interior designers.

“I used to chair meetings where I’m the only female. I had to fight all the way at the beginning,” said Al-Sharif.

To her best interest, Al-Sharif’s husband is the manager of her enterprise. She said that this has made the situation very convenient for her and her business.

“It made things easier. Especially when someone has to follow up on governmental procedures or look after financial matters. I know that I’m in good hands,” said Al-Sharif.

Nawal Al-Maymani, a Saudi fashion designer, started her own business nine years ago introducing the art of traditional clothing from her home. She faced another problem concerned with labor force. She needed working hands so it was difficult to find qualified skilled workers in the country.

“I had to recruit tailors from abroad since they’re the most important part of my business. But it wasn’t easy,” said Al-Maymani.

She was waiting on her license and without it she could not apply for visas. She had to hire local workers who demanded really high salaries.

“I started with one tailor and one embroiderer. When the business expanded, I had to get a license to recruit more people. It wasn’t easy. Business in this country isn’t easy for women,” said Al-Maymani.

Al-Maymani said that since her father was a businessman, he helped her a lot. He had previous knowledge of all the procedures. “If it wasn’t for him, I wouldn’t have known how to do all these things,” she said.