A Singapore press holdings portal

Business, Asia

Saturday, Apr 19, 2014

Business, Asia

Women edge into Gulf boardrooms as economies, societies shift

Reuters | Saturday, Apr 19, 2014

Princess Ameerah al-Taweel, chief executive of Saudi-based Time Entertainment Holding, stands in Burj Al Arab hotel in Dubai March 9, 2014.

DUBAI - Amina al-Rustamani, a member of a prominent UAE family, raised eyebrows among friends and relatives when she started her career in Dubai 13 years ago as an electrical engineer, becoming one of few females in the Middle East to enter the profession.

Success in a male-dominated environment helped give her the confidence to rise up the career ladder and break more barriers.

She is now chief executive of TECOM Investments, part of a conglomerate owned by the ruler of Dubai which manages a complex of nine business parks and spearheads the emirate's economic ambitions in information technology, science and education.

Almost unimaginable just a generation ago, Rustamani's rise to the highest level of business in a Gulf Arab country underlines a shift in the business environment that is allowing the gradual entry of women into boardrooms and other positions of economic power in the region.

"There's always this challenge to fit in and excel but once you prove that you are competent, you will earn society's respect," said Rustamani, who has a doctorate in electrical engineering from The George Washington University in Washington DC.

"Governments have a role to play, the private sector has a role to play and families have a role to play. But it all boils down to what you can do as an individual."

While female company directors are still a rarity in the Middle East, the region's growing wealth, rising education standards for women and government efforts to promote more equal opportunities should help make it easier for women to crack the "glass ceiling", or perceived discrimination against female executives, in future.

Women accounted for 9.8 per cent of corporate board seats across the world in 2011, the latest data from US-based research firm GMI Ratings shows. But in the Gulf Cooperation Council - the group of six wealthy oil-exporting countries - they accounted for just 1.5 per cent, according to the Dubai-based Institute for Corporate Governance.

The gap is narrowing though. The figure of 1.5 per cent "compares to almost nil 10 years ago", said Shailesh Dash, chief executive of Dubai-based asset management firm Al Masah Capital.

In the United Arab Emirates, the business world is unusually cosmopolitan by Gulf standards because of freewheeling Dubai.

In December 2012, Sheikh Mohamed bin Rashid Al Maktoum, UAE's prime minister and Dubai's ruler, issued a law obliging all government departments and related companies to have female representation on their boards, although it did not set a target date so adherence to the law is seen to be very gradual.

Fourteen per cent of senior management roles in the UAE are held by women, a study released by consultants Grant Thornton last month showed. That was below a global average of 24 per cent but above 9 per cent for Japan, 10 per cent for the Netherlands and 13 per cent for Switzerland, the study found.

Conservative Saudi Arabia, by far the biggest Gulf economy, trails behind as custom is reinforced by strict Islamic law; women need the permission of a male guardian to travel abroad or open a bank account. In many companies and government departments, women and men are segregated.

But there are signs of change.

Last month Saudi Arabia's NCB Capital, a unit of the country's biggest bank, said it had appointed Sarah Al-Suhaimi as chief executive - the first woman to head an investment bank in the kingdom. Suhaimi was previously head of asset management at Jadwa Investment in Saudi Arabia.

Saudi Arabia's most high-profile businesswoman, Lubna Olayan, chief executive of Riyadh-based Olayan Financing Company, which was founded by her father, was named in Fortune magazine's 2013 list of the 50 most powerful women in business globally, a list dominated by American women.

She has called on the CEOs of companies in major Arab countries to hire and mentor women, saying that is what the region needs to develop.

No comments yet.
Be the first to post comment.