International Business Practices in Saudi Arabia: Cultural effect

1. International Business Practices in Saudi Arabia: Cultural effect Salem M. Al-Ghamdi Associate Professor of Management and Assistant Dean of CIM Graduate Programs January 2008

2. Saudi Arabia, Japan USA, Germany, Switzerland High and low context cultures • Low context • Messages are explicit and specific • Words carry all information • Reliance on legal paperwork • Focus on non-personal documentation of credibility • High context • Information resides in context • Emphasis on background, basic values • Less emphasis on legal paperwork • Focus on personal negotiation

3. Cultural Features of Saudi Society • Confrontation and conflict are to be avoided “The concept of face is a fundamental issue of Daily Life”; • Compromise, patience and self-control is a means by which to safe face; • Dignity and respect are key elements in S.A. culture. Conclusion: Saudi Arabian counterpart will not take well to pressure tactics that place them in an uncomfortable positions, thus forcing them to lose face.

4. Cultural Features of Saudi Society • Islam as a religion has an extensive influence on Saudi society; • Arabian culture is often described as detail orientated; • Ethics and expected social behavior such as generosity, respect, and solidarity are emphasized. Conclusion: Understanding Islam, which governs every respect of a Muslim’s life, shall enhances how and why Saudi business people act or behave in certain manner.

5. Cultural Features of Saudi Society • Saudi Arabia is considered a high context communication; • Saudi Arabia culture relies heavily on non-direct communication cues such as body language and eye-contact, tone of voice, facial cues, and the use of silence. Conclusion: It is vital to be aware of these non-verbal aspects of communication in any business meetings in order to avoid misunderstandings.

6. Cultural Features of Saudi Society • Understanding of Saudi etiquette and the personal manner in which business is conducted is essential to success; • 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; • 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. Conclusion: Working practices in Saudi Arabia are heavily influenced by culture.

7. Cultural Features of Saudi Society • The Saudi working week begins on Saturday and ends on Wednesday. Thursday and Friday are the official weekend; • Office hours tend to be 0900-1300 and 1600-2000 (Ramadan 2000-0100) with some regional variation; • There exists a distinct dichotomy between subordinates and managers within S.A. companies; • Age plays a significant part in the culture of S.A. greater respect must be shown to elders and all times. Conclusion: When first entering the room or greeting your Saudi counterparts for the first time, you should shake hands with the most senior person first.

8. Cultural Features of Saudi Society • Establishing trust is an essential part of Saudi business culture; • Cultivating solid business relationships before entering into business dealings is key to your success; • In a business setting, favors based on mutual benefit trust are ways of enhancing these cultural values; • Due to the personal nature of business in Saudi Arabia, family influence and personal connections often take precedence over other governing factors. Conclusion: 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

9. Cultural Features of Saudi Society • It is generally 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; • Business cards are common but not essential to Saudi Arabia business culture. However, if used locally, ensure that you have the information printed in both English and Arabic; • Gift giving in Saudi Arabia is appreciated but not necessary; • It is also advised to refrain from overly admiring an item belonging to another, as they may feel obliged to give it to you; • 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; • In the event that you are offered a gift, it is considered impolite and offensive if you do not accept it.

10. Sociological and Religious points of view of cultural features of Saudi Society • Islam plays a large role in the people’s lives; • Large power distance and uncertainty avoidance are the predominant characteristics for this region; • The society is highly role-oriented with laws, rules and regulations; • Inequalities of power and wealth have been allowed to grow within the society; • As a result of this high uncertainty avoidance characteristics, the society does not readily accept change and is very risk adverse; • Saudi society is a collective society and is manifested in a close long-term commitment to the member “group”.

11. Media Decisions – Saudi Arabia • Use of comparative advertising claims is prohibited; • Non-censored films cannot be advertised; • Women may only appear in those commercials that related to family affairs, and their appearance must be in a decent manner that ensures feminine dignity; • Women must wear a long suitable dress which fully covers her body except face and palms.

12. Thank you.