International Business Practices Web Page

International Business Practices Web Page -- Saudi Arabia

Doing Business Abroad in General

It is very important that you understand the prevailing social and cultural practice and expectations of the host country anytime you do business across foreign borders. Failing to know what norms and practices are expected by your foreign hosts or prospective business partners can make the difference between the success and failure of your entire business partnership or venture. Behaviors and practices that are expected in some countries can be highly offensive in others, and vice-versa (Harris & Moran, 2007). Always conduct the necessary research to familiarize yourself with all of the practices that will be expected of you before you schedule your visit overseas.

General Advice about Doing Business in Saudi Arabia

In general, Middle Eastern countries observe very different social and cultural rituals from those in the West (Harris & Moran, 2007). More specifically, in Saudi Arabia, business leaders frequently conduct initial meetings in their homes instead of in the traditional office environment. Moreover, business is usually not discussed at all during the initial meeting; instead, the purpose of the meeting is to get to know one another and become comfortable in the business relationship. This is extremely different from the way we do business in the U.S., but it is important that you adhere to these expectations when doing business in Saudi Arabia (Hughes & Chesters, 2003).

Matters of Social Etiquette in Saudi Arabia

Saudis belch loudly to indicate that they enjoyed a meal, but they would be very offended if you touched them (or anything on a dining table) with your left hand, since the left hand is considered the "dirty" hand because it is typically used for washing up in the bathroom in a country where water and soap are usually used instead of toilet paper (Hughes & Chesters, 2003). Saudis are also offended by the sight of the soles of shoes because in their culture, showing someone the sole of your shoe is roughly equivalent to giving someone the middle finger in the U.S. Therefore, you must be careful not to cross your legs in the "figure 4" posture that is common among males in the West (Hughes & Chesters, 2003

Important Cultural Expectations in Saudi Arabia

There are also important cultural differences that you should be aware of in Saudi Arabia. For example, women are prohibited from driving and they are expected to wear very conservative clothing (Hughes & Chesters, 2003). Therefore, having a Western female executive who shows up to an appointment in a business skirt that might be perfectly appropriate in the West could ruin your arrangements. Saudis are also very careful about any physical contact between the genders; therefore, Westerners should always wait and follow the lead of their Saudi hosts when it comes to things such as extending a handshake to anybody of the opposite gender (Hughes & Chesters, 2003).