Apr 27

Mecca salem i Challenges of Doing Business in Saudi Arabia

© istockphoto.com/salem

A kingdom built upon and unified by Islam, Saudi Arabia, with its vast plains and endless deserts has fascinated travellers for centuries. Occupying nearly 80% of the Arabian Peninsula and the largest exporter of petroleum in the world, Saudi Arabia hosts a series of buzzing and successful cities. A monarchy with a rich Arab and Muslim heritage, Saudi Arabia is also characterised for its high degree of cultural homogeneity.

Cross-cultural training courses such as Living and Working in Saudi Arabia increase an organisation’s awareness and understanding of some of the potential cultural differences which may act as stumbling blocks for companies working in Saudi Arabia. Intercultural Training Middle East programmes ensure that all concerned create strategies for drawing benefits from these differences.

The following are five of the key cultural concepts international organisations face when setting up or doing business in Saudi Arabia.

Communication Style – Differences in communication styles can often be a cultural challenge and as a result, international organisations doing business in Saudi Arabia without adequate briefing may often find themselves feeling confused and frustrated. The communication style in Saudi Arabia tends to be quite indirect and high context. In other words, this means that communication styles in Saudi Arabia tend to rely more heavily on body language and other non-verbal cues such as tone of voice and the use of silence. When doing business in Saudi Arabia, it is wise to remember that information is rarely explicitly stated, silence is often used for contemplation and a direct “no” is almost never used.

Islam – Islam touches many aspects of society within Saudi Arabia. The country is governed on the basis of Sharia (Islamic Law) and a great majority of the population are Arabs who adhere to the Wahhabi sect of Islam. Islam shapes the values and rules concerning the appropriate way to behave and relate to family, community and business. As a result there are customs and social duties that affect the Saudi Arabian business world and affect the way business is dealt with. In the world’s current climate, several stereotypes are prevalent concerning Islamic faith and therefore when doing business in Saudi Arabia it is important to reserve time to research Islam yourself. Ignorance as to how Islam influences business and every day life could damage relations.

Relationships – Personal relationships are a fundamental aspect of Middle Eastern culture. People take a sincere interest in each other and invest a lot of time in getting to know others. There isn’t a clear line of distinction between business and personal relationships which means that one is quite often used to further the interests of the other. People tend to prefer getting to know a person before trusting them in business. When doing business in Saudi Arabia, remember that a huge emphasis is placed on networks and refusing requests made by friends is often considered rude. Great pride is placed in hospitality with which a person’s character is measured, take advantage of this opportunity to develop personal and professional relationships.

Attitude to time – Although punctuality is expected of foreigners, business in Saudi Arabia has a more flexible attitude towards time and business meetings tend to be less structured in nature. However, it is rare for meetings to intrude on daily prayers and equally, when doing business in Saudi Arabia, considerations must be made to schedule business meetings in a way that does not interfere with prayer times. Furthermore, it is important to remember that the working week begins on a Saturday and ends on Wednesday with Thursday and Friday being the official days of rest.

Hierarchy – Saudi Arabian culture places great emphasis on dignity and respect. Younger people are expected to display this respect to their elders by using the appropriate titles and levels of deference. Within business, leaders distribute power from the top and only those in senior positions have decision making capacity. When entering a room or greeting your Saudi counterparts for the first time you should approach the most senior person first.

In many ways, Saudi Arabia remains a sensitive region in terms of economy, religion and culture. Although an important first step, it is not enough to simply recognise the intercultural differences that exist when doing business in Saudi Arabia. International organisations must also strive to comprehend the reasons behind cultural challenges in order to be able to exploit differences to create benefits. A Cross Cultural Training Middle East course such as Doing Business in Saudi Arabia will help organisations develop strategies to maximise the potential of doing business in Saudi Arabia. Moreover, intercultural training will contribute towards the development of an interculturally competent workforce, a definite advantage in today’s fiercely competitive global business environment.

© Communicaid Group Ltd. 2010

Apr 14
Saudi Man Worldtrecker i Challenges of Doing Business in the Middle East

© istockphoto.com/Worldtrecker

 

The Middle East is a vast region, comprising a multitude of cultures, religions, nations and peoples. This complex mix can sometimes be hard for outsiders to comprehend. Any organisation planning to do business in the Middle East needs to have an in-depth understanding of these complexities.

Cross Cultural Training Middle East programmes such as Communicaid’s Doing Business in the Middle East training can help organisations and individuals acquire the cross cultural skills and knowledge to deal with culturally sensitive situations which might arise when doing business in the Middle East. Some of the key challenges of doing business in the Middle East include the following.

Hierarchy
The general business structure in the Middle East is very hierarchical, with a clear separation of levels, i.e. senior management, middle management and their teams. Respect for titles and seniority is crucial when doing business in the Middle East.

Religion
Religion is an ever-present issue in the Middle East. Whether your Middle Eastern counterparts are Jewish, Christian, Muslim or of another faith, religion will have some influence on their lives and your business dealings with them. An example of one such influencing factor is Sabbath days. In the Islamic Middle East, the Sabbath days (days when businesses tend to close) are Thursday to Saturday. In Israel, the Jewish Sabbath means that businesses close and no work is done on Fridays and Saturdays.

Restrictions
Restrictions on activities and operations vary across the Middle East. When setting up operations or sending international assignees to the Middle East, it is essential to make yourself or your international assignees aware of any culturally sensitive restrictions they are likely to encounter when doing business in the Middle East. Cross cultural awareness training programmes can help.

Attitudes towards Time
Punctuality is not as important to the communities of the Middle East as it is to Europeans or Americans. For this reason you should expect and be tolerant of time delays, late starts and meetings running over the agreed time limits.

The Middle East is a complex region for doing business due to the combination of history and tradition, the variety of different communities and cultures, and the current economic and political climates in the region. Now more than ever before it is imperative that any organisation doing business in the Middle East is properly prepared for what can be a minefield of cultural and practical challenges. Cross cultural awareness training programmes can ensure that organisations and individuals doing business in the Middle East have the required skills and knowledge to be successful.

© Communicaid Group Ltd. 2010

Mar 11

The Middle East is an enormous geographical and cultural region stretching from the Mediterranean coast of North Africa to the Afghani border with Pakistan. The region is home to many races and religions including Jews, Muslims, Christians, Druze and Baha’i.

A varied history of dominance and subservience has created a diversity of opinions, attitudes, traditions and cultural norms. Politically too, the Middle East boasts modern and free democracies and also endures theocratic autocracies.

For the past three decades the Middle East has been at the centre of global interaction, be it global conflict or global trade. Doing business in the Middle East can offer a number of key benefits, including the following.

 

Map of Middle East Juanmonino i 412x300 Benefits of Doing Business in the Middle East

© istockphoto.com/Juanmonino

 

Rapidly Modernising Markets
Recent years have seen a trend towards the modernisation of markets across the Middle East in a bid to attract and keep foreign investment. The idea of economic diversification has also begun to spread as many of the oil producing nations become aware that revenue from oil will not last forever. Diversification has come in the form of tourism, telecommunications and I.T solutions which have all increased foreign investment potential for anyone doing business in the Middle East.

An Abundance of Natural Resources
As would be expected with a region spanning the area that is occupied by the Middle East, there is an abundance of natural resources, creating a profitable environment for industrial and economic growth. In fact, according to the BBC 62.5% of the petroleum produced globally comes out of the Middle East.

A Crossroads for International Trade
For millennia, the Middle East has been at the centre of global international trade. Whether the ancient ‘Silk Road’ or 21st century oil trade, the Middle East has always boasted first-class port facilities and today can also claim to have some of best trade facilities in the world.

An Educated Workforce
An educated workforce is a successful workforce. This is a concept that rings very true across the Middle East. Education is highly valued. In many of the countries in the region, the work force comprises people educated up to and beyond university level.

The Middle East is a vast, complex mix of cultures. Any organisation doing business in the Middle East should gain an understanding of the differences which exist. A Communicaid cross cultural training programme such as Doing Business in the Middle East will give your organisation an introduction to the complexities and challenges of doing business in the Middle East and strategies to maximise your chances of success.

© Communicaid Group Ltd. 2010

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