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

High and low context cultures 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 Saudi Arabia, Japan USA, Germany, Switzerland

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.

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.

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.

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.

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.

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

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.

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”.

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.

Thank you.