Doing business in Saudi Arabia is a challenge.Do not enter into any business relationship until you have fully researched its culture, its traditions and its way of life.Saudi Arabia is a mix of the feudal and the future being both back looking in a Westerners eyes and being far ahead of us in terms of investing in its infrastructure and the education of its people.
Don’t fight it, don’t expect to change and why should you. it is their country and their ways but you do need to step with caution as unintended offense can be caused through being unaware of the culture and the customs.
It is very much a society of where you have to be properly introduced, if not directly, then through a respected third party. It is true to say the assistance from the west is seen as hired help where they need it and this can cause real problems in trying to develop a relationship and get the message across that you are trying to help them help themselves.
Communication is not easy but in the larger businesses you might find expats that are on the ground who can act as conduits but make such arrangements through official channels not the back door but many Westernised Saudi’s know that poor communication is an issue and will help you but you need to be sensitive at all times.
My advice is to be politely stubborn if setting up a business deal if you are confident that you Saudi counterparts want your products and services as they are very slow in decision making until they make a decision when they want everything done yesterday and you have to be strong enough not to cave in under the promise of a big order if you haven’t got all the information you need to establish a contract.
Another constant issue is payment. I have never known a part of the world worse than the Middle East for losing paperwork or failing to schedule the payment of invoices correctly and again you need to be strong. To date we have never had a bad debt in the Middle East but you constantly have to chase and it is wearing.
My advice is to keep invoices small and regular that enables you to pick up payment, or more correctly, non-payment trends but it is a problem so think carefully if your cash flow can stand material delays.
Providing you do a good job for your paymasters they tend to be loyal long term clients and in our experience perseverance is the name of the game.
As a European Recruitment Agency we have done very well in the Middle East in the supply of ESL Teachers (English as a second language) because our brand is getting known and we are now approached where you can afford to be a little stronger in your negotiating style but don’t expect anything to move quickly in the Middle East.
As part of an international recruitment agency we have failed to gain traction in areas like healthcare, engineering and natural resources where we know there are skills shortages throughout the region because we simply don’t know the right people and you just have to be patient until the opportunity arises.
Here are a few etiquette tips that you need to remember as well.
Business visits during Ramadan (fasting month, August) and Hajj (pilgrimage, 10 days in early November) should be avoided as working hours are shortened and many senior businessmen will not be available.
‘Small talk’ is vital for the establishment of trust and must not be hurried or dispensed with. In introductory business conversations, talk often centres on the health and wellbeing of the other person, but never about his wife and female relatives.
It is not unusual for a Saudi businessman or officials to have a number of people in an office all discussing various matters at once. When invited into an office, you will be given a seat, refreshments and be engaged in introductory conversation, after which your host may break off conversation with you and deal with one of his other visitors before returning to you.
It can be a lengthy and complicated process to obtain a visa for a female business visitor. It is generally easier if she is part of a delegation, however, she will only be able to attend business meetings if accompanied by a male representative who should conduct the meeting on her behalf.
Refreshments (eg. coffee, tea) should always be accepted. Coffee is offered to guests in order of their rank, if known to the host. It is customary to drink more than one cup of coffee or tea but not more than your host or others present. To decline a further serving, you shake the cup when handing it back to the server.
In business circles, standard dress for men is a suit and tie. For casual wear, slacks and a short-sleeve shirt are acceptable, but shorts should not be worn in public.
Women should wear long, loose fitting garments. Foreign women have to wear a black cloak called an ‘ abaya’ that drops from the shoulders to the ground and carry a head scarf in Riyadh, the capital of Saudi Arabia. The areas of Jeddah and Dammam tend to be a bit more tolerant.
Saudis usually greet each other with kisses on the face or on the forehead and walk hand-in-hand. Westerners are normally greeted with a handshake.
Saudi men are usually addressed by their first or given name. For example, Mr. Osamah Bin Abdullah Al-Tuwari has the given name of Osamah, is the son of Abdullah, and his family grouping or tribe is Al-Tuwari. He would be called Mr Osamah.
Saudis show a concern for seniority and precedence and visitors should also observe this. For example, ensure that an older or more senior person goes through a door first. Similarly, if walking together, the guest or senior person should be on the right of the group as a mark of respect.
It is considered offensive to sit with the soles of your shoes or feet facing the other members of your group.
Care should be taken not to express admiration for something owned by your host, or you may have the object offered to you immediately as a gift. This is an ancient custom, still preserved in many traditional areas.
If invited to dinner, unless otherwise stated, it can generally be assumed that only males will attend the function. Women frequently have separate functions. It may be taken as an affront to refuse an entertainment invitation.
It is unlikely that you will be invited to an Arab’s house, unless the host is very aware of Western culture or you have developed a very strong friendship with the person. If you invite a local to dine with you, do not include his wife in the invitation unless you have a prior indication that she may accept.
Do not take a photo of anyone without asking prior permission. Sensitivity to local tradition and laws is essential and caution is strongly advised. It is forbidden to photograph mosques, palaces, government buildings, airports, railroad stations and most souq areas.
It is a tricky area of the world but if you have a product or service that is in demand you will eventually succeed but it will take time.
Author: Chris Slay
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