Identifier
Created
Classification
Origin
06JEDDAH494
2006-07-25 05:22:00
CONFIDENTIAL
Consulate Jeddah
Cable title:  

A BRIEF OVERVIEW OF BUSINESS REGISTRATION IN JEDDAH

Tags:  ECON KWMN PINR SA PGOV 
pdf how-to read a cable
VZCZCXRO9894
RR RUEHDE
DE RUEHJI #0494 2060522
ZNY CCCCC ZZH
R 250522Z JUL 06
FM AMCONSUL JEDDAH
TO RUEHC/SECSTATE WASHDC 9366
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHRH/AMEMBASSY RIYADH 6689
RUEAIIA/CIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEKJCS/DIA WASHDC
C O N F I D E N T I A L JEDDAH 000494 

SIPDIS

SIPDIS

RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARP,
INR/B

E.O. 12958: DECL: 07/24/2031
TAGS: ECON KWMN PINR SA PGOV
SUBJECT: A BRIEF OVERVIEW OF BUSINESS REGISTRATION IN JEDDAH

Classified By: Consul General Tatiana Gfoeller for reason 1.4 (b) and (
d).

C O N F I D E N T I A L JEDDAH 000494

SIPDIS

SIPDIS

RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARP,
INR/B

E.O. 12958: DECL: 07/24/2031
TAGS: ECON KWMN PINR SA PGOV
SUBJECT: A BRIEF OVERVIEW OF BUSINESS REGISTRATION IN JEDDAH

Classified By: Consul General Tatiana Gfoeller for reason 1.4 (b) and (
d).


1. (U) On July 10 Pol/EconOffs and FCSOffs met Mr. Muhammad
Atiq Al Harby, Director General of the Ministry of Commerce
in Jeddah. During the brief meeting Al Harby gave an outline
of the procedures for women to register their businesses in
Jeddah. The Ministry's female section is only one year old
and has four female employees and a representative from the
Jeddah Chamber of Commerce and Industry.


2. (C) Al Harby said that the number of women business owners
is growing rapidly, with the Ministry receiving 150 to 200
applications a month. Women are freely allowed to register
businesses in areas deemed appropriate for women such as
beauty salons but if a woman wants to register a business
that is outside of these sectors, she needs a male partner.
There are also certain sectors such as construction that are
off limits for women unless there are 2 or more that are
starting the business together. When asked how women will
know what sectors are off limits or require partners, Al
Harby said they could find this information online. (Note.
Pol/EconOffs were not able to find any information online
specifically for women. End Note.) In some cases Al Harby
said that the registration application has to go to Riyadh
for approval when a woman wants to open a business in an area
that is restricted but she does not have any partners.


3. (U) The Ministry requires registrants to submit only an
identity card, proof of access to commercial space, and the
Ministry's application form. Registrants are not required to
submit financial documentation, a business proposal, or any
material from the local legal authorities. The Ministry also
registers trademarks with a similar process. Aside from
finding the appropriate forms online, no registration is
available on the Ministry's website at this time.


4. (C) In contrast with Al Harby's portrayal of business
registration for women, a Consulate contact, who owns her own
public relations firm, told PolOff of her experiences
registering her businesses with the Ministry of Commerce.
Despite having male partners for all of her businesses,
registering with the Ministry has been repeatedly delayed due
to the bureaucracy. She says that she is able to register
her businesses primarily because of who she knows but there
are many women who don't have any connections and are unable
to register with the Ministry. While she does not want to
have to depend on her connections and male business partners
to get a license, neither does she want to bring attention to
herself by speaking out and damage her ability to obtain a
business license.


5. (C) Comment: Al Harby's suggestion that women can
participate in all sectors as long as Riyadh agrees is
probably an indication that women really are not allowed to
open businesses in areas deemed inappropriate for them. Al
Harby did mention that sometimes men register businesses for
their female relatives but could not estimate how widespread
this practice is. The fact that Al Harby's description is
not in practice confirms the disconnect between what the
government leadership enacts as policy and what is actually
practiced in the Kingdom at the working level. Government
workers at this level are probably not being held accountable
for implementing the new policies, are not trained on how to
carry out their new functions, and may hold their own biases
that influence their work. While the numerous programs to
develop small businesses are positive for economic
development, until the working level government officials are
on board Saudi Arabia's investment climate may not greatly
improve.
Gfoeller