international business practices in saudi arabia

International Business International Business Practices in Saudi Arabia: Practices in Saudi Arabia: Cultural effectCultural effect

Salem M. Al-GhamdiSalem M. Al-GhamdiAssociate Professor of ManagementAssociate Professor of Management

andand

Assistant Dean of CIM Graduate Assistant Dean of CIM Graduate ProgramsPrograms

January 2008January 2008

High and low context High and low context culturescultures

High contextHigh context- Information Information

resides in contextresides in context- Emphasis on Emphasis on

background, basic background, basic valuesvalues

- Less emphasis on Less emphasis on legal paperworklegal paperwork

- Focus on personal Focus on personal negotiationnegotiation

Low contextLow context- Messages are Messages are

explicit and specificexplicit and specific- Words carry all Words carry all

informationinformation- Reliance on legal Reliance on legal

paperworkpaperwork- Focus on non-Focus on non-

personal personal documentation of documentation of credibilitycredibility

Saudi Arabia, JapanSaudi Arabia, Japan USA, Germany, USA, Germany, SwitzerlandSwitzerland

Cultural Features of Saudi Cultural Features of Saudi SocietySociety

1.1. Confrontation and conflict are to be Confrontation and conflict are to be avoided “The concept of face is a avoided “The concept of face is a fundamental issue of Daily Life”;fundamental issue of Daily Life”;

2.2. Compromise, patience and self-control is a Compromise, patience and self-control is a means by which to safe face;means by which to safe face;

3.3. Dignity and respect are key elements in Dignity and respect are key elements in S.A. culture.S.A. culture.

Conclusion: Saudi Arabian counterpart will not Conclusion: Saudi Arabian counterpart will not take well to pressure tactics that place take well to pressure tactics that place them in an uncomfortable positions, thus them in an uncomfortable positions, thus forcing them to lose face.forcing them to lose face.


4.4. Islam as a religion has an extensive influence Islam as a religion has an extensive influence on Saudi society;on Saudi society;

5.5. Arabian culture is often described as detail Arabian culture is often described as detail orientated;orientated;

6.6. Ethics and expected social behavior such as Ethics and expected social behavior such as generosity, respect, and solidarity are generosity, respect, and solidarity are emphasized.emphasized.

Conclusion: Understanding Islam, which governs Conclusion: Understanding Islam, which governs every respect of a Muslim’s life, shall every respect of a Muslim’s life, shall enhances how and why Saudi business enhances how and why Saudi business people act or behave in certain manner.people act or behave in certain manner.


7.7. Saudi Arabia is considered a high context Saudi Arabia is considered a high context communication;communication;

8.8. Saudi Arabia culture relies heavily on non-Saudi Arabia culture relies heavily on non-direct communication cues such as body direct communication cues such as body language and eye-contact, tone of voice, language and eye-contact, tone of voice, facial cues, and the use of silence.facial cues, and the use of silence.

Conclusion: It is vital to be aware of these non-Conclusion: It is vital to be aware of these non-verbal aspects of communication in any verbal aspects of communication in any business meetings in order to avoid business meetings in order to avoid misunderstandings.misunderstandings.


9.9. Understanding of Saudi etiquette and the personal Understanding of Saudi etiquette and the personal manner in which business is conducted is essential manner in which business is conducted is essential to success;to success;

10.10. Business appointments, for example, is unique in Business appointments, for example, is unique in S.A. appointments should be scheduled in S.A. appointments should be scheduled in accordance with the five daily prayer times and the accordance with the five daily prayer times and the religious holidays of Ramadan and Hajj;religious holidays of Ramadan and Hajj;

11.11. It is customary to make advance appointments for It is customary to make advance appointments for times of day rather than precise hours as the times of day rather than precise hours as the relaxed and hospitable nature of Saudi business relaxed and hospitable nature of Saudi business culture may cause delays in schedule.culture may cause delays in schedule.

Conclusion: Working practices in Saudi Arabia are Conclusion: Working practices in Saudi Arabia are heavily influenced by culture.heavily influenced by culture.


1212 The Saudi working week begins on Saturday and The Saudi working week begins on Saturday and ends on Wednesday. Thursday and Friday are the ends on Wednesday. Thursday and Friday are the official weekend;official weekend;

1313 Office hours tend to be 0900-1300 and 1600-2000 Office hours tend to be 0900-1300 and 1600-2000 (Ramadan 2000-0100) with some regional variation;(Ramadan 2000-0100) with some regional variation;

1414 There exists a distinct dichotomy between There exists a distinct dichotomy between subordinates and managers within S.A. companies;subordinates and managers within S.A. companies;

1515 Age plays a significant part in the culture of S.A. Age plays a significant part in the culture of S.A. greater respect must be shown to elders and all greater respect must be shown to elders and all times.times.

Conclusion: When first entering the room or greeting Conclusion: When first entering the room or greeting your Saudi counterparts for the first time, you your Saudi counterparts for the first time, you should shake hands with the most senior person should shake hands with the most senior person first.first.


16.16. Establishing trust is an essential part of Saudi Establishing trust is an essential part of Saudi business culture;business culture;

17.17. Cultivating solid business relationships before Cultivating solid business relationships before entering into business dealings is key to your entering into business dealings is key to your success;success;

18.18. In a business setting, favors based on mutual benefit In a business setting, favors based on mutual benefit trust are ways of enhancing these cultural values;trust are ways of enhancing these cultural values;

19.19. Due to the personal nature of business in Saudi Due to the personal nature of business in Saudi Arabia, family influence and personal connections Arabia, family influence and personal connections often take precedence over other governing factors.often take precedence over other governing factors.

Conclusion: When entering a meeting, general Conclusion: When entering a meeting, general introduction will begin with a handshake. We should introduction will begin with a handshake. We should greet each of our Saudi counterparts individually greet each of our Saudi counterparts individually (saying A-salaam alaikum), making on way around (saying A-salaam alaikum), making on way around the room in anti-clockwise directionthe room in anti-clockwise direction


20.20. It is generally uncommon for a Muslim man to shake hands It is generally uncommon for a Muslim man to shake hands with a woman. Therefore, it is advisable for business with a woman. Therefore, it is advisable for business women to wait for a man to offer his hand first;women to wait for a man to offer his hand first;

21.21. Business cards are common but not essential to Saudi Business cards are common but not essential to Saudi Arabia business culture. However, if used locally, ensure Arabia business culture. However, if used locally, ensure that you have the information printed in both English and that you have the information printed in both English and Arabic;Arabic;

22.22. Gift giving in Saudi Arabia is appreciated but not Gift giving in Saudi Arabia is appreciated but not necessary;necessary;

23.23. It is also advised to refrain from overly admiring an item It is also advised to refrain from overly admiring an item belonging to another, as they may feel obliged to give it to belonging to another, as they may feel obliged to give it to you;you;

24.24. Initial business meeting are often a way to become Initial business meeting are often a way to become acquainted with your prospective counterparts. They are acquainted with your prospective counterparts. They are generally long in duration and business are conducted at a generally long in duration and business are conducted at a leisurely pace over tea and coffee;leisurely pace over tea and coffee;

25.25. In the event that you are offered a gift, it is considered In the event that you are offered a gift, it is considered impolite and offensive if you do not accept it.impolite and offensive if you do not accept it.

Sociological and Religious points Sociological and Religious points of view of cultural features of of view of cultural features of Saudi SocietySaudi Society1.1. Islam plays a large role in the people’s lives;Islam plays a large role in the people’s lives;2.2. Large power distance and uncertainty avoidance are Large power distance and uncertainty avoidance are

the predominant characteristics for this region;the predominant characteristics for this region;3.3. The society is highly role-oriented with laws, rules The society is highly role-oriented with laws, rules

and regulations;and regulations;4.4. Inequalities of power and wealth have been allowed Inequalities of power and wealth have been allowed

to grow within the society;to grow within the society;5.5. As a result of this high uncertainty avoidance As a result of this high uncertainty avoidance

characteristics, the society does not readily accept characteristics, the society does not readily accept change and is very risk adverse;change and is very risk adverse;

6.6. Saudi society is a collective society and is Saudi society is a collective society and is manifested in a close long-term commitment to the manifested in a close long-term commitment to the member “group”.member “group”.

Media Decisions – Saudi Media Decisions – Saudi

ArabiaArabia Use of comparative advertising claims is Use of comparative advertising claims is

prohibited;prohibited; Non-censored films cannot be Non-censored films cannot be

advertised;advertised; Women may only appear in those Women may only appear in those

commercials that related to family commercials that related to family affairs, and their appearance must be in affairs, and their appearance must be in a decent manner that ensures feminine a decent manner that ensures feminine dignity;dignity;

Women must wear a long suitable dress Women must wear a long suitable dress which fully covers her body except face which fully covers her body except face and palms.and palms.

Thank you.Thank you.

international business practices in saudi arabia

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