How To Do Business In Saudi Arabia – The business culture in Saudi Arabia is unique and understanding how things work in the palaces, offices and meeting rooms is essential to doing business successfully in the powerful Arab economy.
Business etiquette in Saudi Arabia differs from the rest of the world. This detailed guide explains everything, including what you can and can’t do in the country. It includes the following information:
How To Do Business In Saudi Arabia
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Why Saudi Arabia Is Being Increasingly Seen As The Place To Be To Start A Business In The Middle East
Saudi Arabia has been engaged in foreign trade for decades. This is usually with exports; up to 90% of state revenues. But oil, energy, telecommunications, healthcare and tourism are now big businesses that are attracting foreign investment and creating new lives and business opportunities in this wonderful country.
The kingdom remains open to global trade beyond oil. Every year, the CEOs of major companies meet for the Investment in the Future initiative (known as Davos in the desert) in Riyadh.
Entrepreneurship is growing in the country as the government prioritizes the establishment of small and medium-sized enterprises (SMEs). Saudi Arabia’s ambitious Vision 2030 plan accelerates the integration of the economy into the global system. Meanwhile, foreign investment in the shadow economy is increasing. Government programs have helped eradicate corruption. For example, in late 2017 it launched a major campaign targeting members of the royal family, ministers and high-ranking businessmen; return on assets is $106 billion.
The business culture in Saudi Arabia is compatible with this spirit of openness. However, it is still a country whose values and business behavior in the Kingdom reflect this. Therefore, developing a sixth sense for the rules of trading is the key to success.
Starting A Business In Saudi Arabia
Although nearly half of the kingdom’s 13 million workers have been laid off, Saudi Arabia’s business culture thrives on local trends. Most of the decision makers are Saudis and businessmen can expect unparalleled Arab hospitality, cancellations, fun chat and exchange all rolled into one; washed it all down with more
(recipe for traditional Arabic coffee). Flexibility, good judgment and good manners are essential when traveling on business in Saudi Arabia.
Local business culture based on personal relationships, harmony and unity; whether family, extended family or business. Who are you, who do you know (aka
In Arabic), is important for business here. The time spent getting to know and gaining the trust of business partners is worth it. Understanding the unique interactions and influences between clans (tribes) in Saudi society is also important. Many meetings, both formal and informal, can be necessary for a company to stand out.
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The business culture in Saudi Arabia is adapting to the changes and new realities associated with Saudi Arabia’s Vision 2030; where one goal is to create a strong community. This is evident in the wider role of women in business and the workforce. For example, the country has a thriving community of business women who run companies.
Vision 2030 also helps improve business performance in the Kingdom. Accountability, transparency, ethics and governance are closely monitored. The National Anti-Corruption Commission was established in 2011 to fight corruption in public institutions. As a result, Saudi Arabia’s ranking on the corruption perception list of Transparency International, an international think tank, continues to slowly improve.
Saudi Arabia could almost lose business in Dubai. But the Kingdom offers exceptional opportunities for those who want to explain the workings of local businesses.
Most offices are open Sunday to Thursday, preferably 8am to 6pm or (rarely) 7am to 7pm (with a long lunch break). By law, the maximum working week is 48 hours, and during the holy month of Ramadan, Muslim workers work 30 hours a week.
Work Visa Requirements In Saudi Arabia
Work-life balance is not a common concept in Saudi Arabia – at least for this position. For many of them, life in the kingdom is hard work and saving. Because Saudi Arabia has long been dependent on foreign talent (where the bosses actually hire the workers when they are in the country), the business culture often sees foreigners as nothing more than calling their company all the time. This is especially true if it is a company from Saudi Arabia. For many fields, the concept of flexibility/remote work is unknown.
Violations of the rights of foreign workers (especially manual workers) remain a problem in Saudi Arabia, and local newspapers regularly report on protests. At the end of 2018, seven new courts were established across the country to hear labor law cases. They often resolve disputes related to employment contracts, wages, workers’ rights and injuries and damages.
Despite this, employers still confiscate the passports of workers coming into the country. In addition, workers still need permission from their employers if they want to leave the country at any time. Apparently there are no unions or federations in Saudi Arabia.
Islam is the foundation of life in Saudi Arabia, including the rest of the world. Meetings and activities are often scheduled during prayer times. Even during the month of Ramadan, do not eat or drink in open spaces (including restaurants) during the day.
Water And Shark:
Because Saudi society is interdependent, an “us” and “them” culture between locals and foreigners can be common in some companies and discrimination exists. The Saudi government’s policy of citizens quickly seeking employment, training, and promotion abroad can lead to conflict. In addition, compensation and salaries in Saudi Arabia may be based more on race than on knowledge or experience in some companies.
According to the law, paid annual leave lasts 21 days. This will increase to 30 days after five years of service. There are three public holidays in Saudi Arabia for employees of private companies: Eid Al Fitr (three to seven days, depending on the private or public sector), Eid Al Adha (three to seven days, depending on the public sector). or private) and Saudi Arabia National Day (September 23).
Business etiquette in Saudi Arabia reflects a wide range. This means they are private but filial. The themes are familiar to expatriates who have done business elsewhere in the Arab world.
A handshake is the first greeting of men in Saudi Arabia. If you’re greeting a woman, wait for her to extend her hand before reaching out. If not, keep your hand to yourself. Greet everyone in the room by shaking hands, starting with the oldest person in the room and working your way up; if you know the level in advance.
Ministry Of Energy Of Saudi Arabia And Hydrogen Systems Inc. Representatives Visit Advent Technologies Global Hq
Saudi men and other Arab men may hug and/or kiss each other on the cheek, nose or forehead as a sign of respect and admiration. However, this is not expected of outsider men.
Meetings and offices in Saudi Arabia are otherwise fluid and flexible, even though they are business. The meeting may not have an agenda (or anyone taking minutes), and don’t belittle it if the agenda starts late or if the meeting is canceled at the last minute. In fact, Saudis do not place much importance on punctuality in general. Meetings often start late and prayer time is dictated by the schedule. Some companies (especially multinationals or large international organizations looking after families in Saudi Arabia) now have hourly rates.
Be prepared to stop that too. Better visibility, more stable traffic, better phone calls and more distractions! As frustrating as it is to have your yard blocked off, take a deep breath and smile politely!
Much of it consists of small talk, especially in the early “get to know each other” phase. Acceptable topics of conversation are family, business, art, culture and sports. Your generosity and thoughts on the culture, history and achievements of Saudi Arabia will be welcomed. However, work well with local politics, religion or royalty unless (in the unlikely event) they want your opinion on the matter. Knowing a little Arabic is good, although most traders in Saudi Arabia speak good English.
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During a meeting or chat, an Arab will sometimes start speaking loudly and passionately. This may sound familiar to Westerners, but although it can be offensive, it can show an interest in the topic at hand. There will also be times of peace; so don’t interpret the silence of the meeting as anything other than a time to think and reflect. Meetings are usually held in English when attended by citizens of different nationalities, but participants may discuss simple or technical topics in Arabic.
When it comes to the business purposes of negotiations, it is difficult for Saudi Arabia to read minds. Communication has a lot to do with body language and other non-verbal cues. Very few business deals or offers are necessarily word of mouth.
. There are some red lines that can be irritating and should be avoided. For example, never show your legs and never openly argue with the homeowner; especially in front of other people. Also, don’t raise your voice and use only your right hand when
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