The Kingdome of Saudi Arabia Business Practices & Cultural Effect

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Transcript of The Kingdome of Saudi Arabia Business Practices & Cultural Effect

Page 1: The Kingdome of Saudi Arabia Business Practices & Cultural Effect
Page 2: The Kingdome of Saudi Arabia Business Practices & Cultural Effect

السعودية العربيةالمملكة

The Kingdome of Saudi ArabiaBusiness Practices

& Cultural effect

Majed Alali

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Cultural Features of Saudi Society

1. Avoid Confrontation and conflict. “The concept of face is a fundamental issue of Daily Life”.

2. Compromise, patience and self-control.

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

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Cultural Features of Saudi Society

4. Islam extensive influence on Saudi society.

5. Arabian culture is often described as detail orientated.

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

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Cultural Features of Saudi Society

9. Understand Saudi etiquette and the personal manner in which business is conducted is essential to success.

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

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

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Cultural Features of Saudi Society

12 The Saudi working week begins on Sunday and ends on Thursday. Friday and Saturday are the official weekend.

13 Office hours.

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

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

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Cultural Features of Saudi Society

16. Establishing trust is an essential part of Saudi business culture.

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

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

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

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Cultural Features of Saudi Society

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

21. Business cards are common but not essential.

22. Gift giving in Saudi Arabia is appreciated but not necessary.

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

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

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

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Conclusion• Pressure Tactics: Cannot help you.• Understanding Islam, shall enhances how and why Saudi

business people act or behave in certain manner.• Working practices are heavily influenced by culture.• When first entering the room or greeting Saudi for the first

time, you should shake hands with the most senior person first.• When entering a meeting, general introduction will begin with

a handshake. We should greet each of our Saudi counterparts individually (saying A-salaam alaikum), making on way around the room in anti-clockwise direction.

• Do not be rigid

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Recommendation

Saudi Arabia does have considerable downsides such as terrorism, extremely high unemployment rates, and migration. However, Saudi Arabia does have a promising growth in economic areas and Saudi Arabia continues to have strong ties with the U.S. as far as trade relations and investments. The lower corporate taxes, the ability to move products and services freely throughout the Middle East, and limited competition in the food and beverage industries have lead Team Saudi Arabia to recommend in favor of moving forward and expanding business to Saudi Arabia.