Globalization of business in Saudi Arabia

GLOBALIZATION & SOCIAL CUSTOMS ISSUES in SAUDI ARABIA

Social Customs in Saudi Arabia:

Conducting business in foreign lands always requires familiarity with local customs and social expectations, to avoid inadvertently undermining one's business interests by insulting potential professional counterparts. Many businessmen from the Persian Gulf are very familiar with American culture, and many Saudis speak perfect

English, having studied in the United States or United Kingdom. Nevertheless, following Saudi customs and avoiding unintended social slights is an important component of establishing productive business relationships, because it demonstrates awareness of and respect for foreign cultures. Saudis will overlook accidental mistakes in this regard, provided it is clearly the result of innocent ignorance rather than intentional slights.

Nevertheless, adapting to customs and social expectations always facilitates business relationships, particularly in cultures that emphasize personal interactions and rituals in a business environment.

Conducting Business in Saudi Arabia:

Saudis often decline formal invitations to business meetings with foreigners until they have arrived in the Kingdom. Therefore, it is usually advisable to communicate one's planned schedule before actually arriving in the country, rather than specifically requesting a business meeting from abroad. Once a face-to-face meeting is arranged, one should be prepared to postpone substantive negotiations until the second or even the third meeting, as it is not at all uncommon for Saudis to avoid business conversation until after personal rapport has been firmly established.

Even when business is discussed, Saudis usually conduct professional negotiations at a much slower pace than Westerners, and most often, after first serving tea and coffee or a full meal. Upon entering a room, Saudis greet every person present with handshake before taking a seat, and may also exchange business cards; their cards are usually printed on both sides, in Arabic and English. While they understand that this is not common practice in the United States, presenting a business card of the same type is a sign of respect, as well as an indication that one is already somewhat experienced with Saudi business customs. Saudis consider the left hand to be "unclean" because it is used for bathroom business; therefore, it is important to use only the right hand for exchanging cards, and especially for eating, drinking, and gesturing in the company of Saudis.

Similarly, Arab cultures consider it an insult to expose the sole of one's foot or shoe to another in any manner. Therefore, one should neither cross one's legs nor lean back in a chair while extending the legs, (such as during a stretch), as this results in exposing the sole toward others in the room.

Unlike American business practices, Saudi business meetings are not conducted in a confidential and private setting, and may often be interrupted by other telephone calls or greetings that Westerners would consider impolite to entertain during a meeting. As is customary in other parts of the world, Saudis have a different sense of personal space than we do, and may stand much closer to each other when talking. Likewise, they usually incorporate physical gestures and touches more than Americans, especially in conjunction with positive rapport, which is why it may very well be taken as an insult for someone to step back to create more personal space or to withdraw from their physical gestures. Doing so during negotiations may be perceived as sign of disagreement or reluctance to the substantive matters of their part of the discussion.

One exception to the rule of physical contact pertains to female, because Saudis do not often shake hands or otherwise initiate physical contact with women outside of their families. However, many Saudis who conduct business in the United States more extensively may do so, but as in other cases of dealing with foreign business representatives in their home country, it is always advisable to wait for cues from the host, particularly before doing anything that otherwise violates local custom.

In general, as regards women, Saudi culture requires a much higher degree of modesty: Saudi women dress in garments that cover them from head to toe, and they do not expose their hair in public. Foreigners are not expected to wear Arab clothes, but they are expected to dress modestly, and women, in particular, are expected to cover themselves in clothes that do not expose any skin. Foreigners should also be aware of local holidays such as Ramadan, during which all Muslim fast during daylight hours.