The ongoing judicial reforms that recognize international laws are a fundamental requirement for sustainable economic development in Saudi Arabia. The establishment of an independent Economic Tribunal to deal with investment and trade issues has been very well received by legal experts and the business community. They describe the development as a positive move that could improve the faith of investors in the Saudi business environment and be a major step toward the enhancement of foreign investment in the Kingdom. At present there are many commercial and industrial disputes that have been going on for years. The present court system does not have the efficiency to resolve them. Experts welcomed the development during a special forum on the new “Saudi rules of arbitration and their impact on investment in the Kingdom”. They outlined the significance of the new arbitration system that will allow parties to resort to international rules which may not be stipulated in the Saudi system. The new system will also address the lack of qualified Shariah experts by giving an opportunity for non-Shariah graduates to arbitrate. Legal experts have commended the new system saying that it is needed to address the reluctance of foreign investors to invest in Saudi Arabia. They hope that the new rules of arbitration will ensure greater transparency and provide a speedy settlement of all foreign and domestic disputes. However, the business community has reiterated the need for the development of efficient government agencies to meet the needs of the new legal system. They have stressed the importance of upgrading administrative departments in order to implement more effectively the measures stipulated in the new arbitration system. Meanwhile, Saudi business investors are also weary of other legal challenges facing the business community in the Kingdom. They are constantly calling for the elimination of rules and regulations that are detrimental to the success of their businesses and that they feel are incompatible with the needs of today's business world. The Saudi business community is waiting anxiously for the elimination of the legal guardianship rule imposed on women and discriminatory practices in the workplace. The Chambers of Commerce continue to lobby for new laws to protect the interests of working women, such as providing adequate transportation to work, pushing for adequate maternity leave, guaranteeing reasonable working hours, and providing onsite nurseries, equal pay and medical insurance. Businesses complain of the strict segregation laws that tend to delay work procedures and are the cause of inefficiencies and poor managerial standards. These laws also tax companies with the need to provide extra facilities and unnecessary procedures that cost them a lot of time and money. Enforcing laws based on the quota system can guarantee more job opportunities for women; enforcing stricter rules to address negative attitudes can stop the harassment of women in the workplace, and implementing policies that encourage the employment of qualified women in leadership and executive positions can boost the business environment and help us develop a more prosperous economy. It is about time we replace antiquated rules with progressive regulations that address our needs. The old school of centralized rules must be upgraded with new rules of management that delegate work to qualified personnel who can get the work done promptly and without delay. It is time we eliminate the restrictions imposed in the workplace in order to appease some extremists in our midst. Legislators are required to act with a greater sense of commitment to serve public interests. Unfortunately, the influence of some hardliners still exists and they exercise their control over the business community and society as a whole. Businesses suffer because of legal restrictions, foremost among them are permit regulations. The business community is burdened by the delay in issuing permits that are required from more than one ministry or government department before an investor can finally conduct a business plan. Permits can take months to process due to bureaucracy and outmoded application requirements. Local investors are hoping for new legal procedures and a reduction of restrictions imposed by rigid rules and regulations. Legal restrictions and tedious regulations stand in the way of business opportunities. Policy makers are called upon to encourage and show more support for struggling small and medium enterprises (SMEs). Legal changes need to be put in place to improve the enforcement of contracts to help smaller enterprises obtain loans and to make lending less restrictive. Social activists continue to reject rules and regulations that violate the legitimate rights and civil liberties of Saudi citizens. Legal experts and the business community are encouraged by the establishment of the new system of arbitration and are hopeful that it will be followed by more financial, legal, and labor reforms. — Samar Fatany is a radio broadcaster and writer. She can be reached at [email protected]
