Cultural mistakes in Saudi Arabian business negotiations

international Business -- Communication Case Study

A business associate once described an unsuccessful attempt to establish a business relationship with prospective partners in Saudi Arabia. In retrospect, it was a tremendous mistake not to conduct the necessary research into Saudi Arabian business culture and practices before attempting to negotiate a deal in their country. Since that experience, the individual involved has become much more familiar with Saudi Arabian customs, practices and expectations.

Arranging the Business Meeting

The first mistake concerned the manner in which the initial business meeting was arranged. The individual established an initial connection through traditional mailed correspondence and then followed up with an email exchange to introduce the business and the idea of a proposal. Then, following regular business practices in the United States, he requested the opportunity of an in-person meeting. His executive assistant inquired on his behalf into the availability of the prospective business partner and indicated several specific dates and times for a scheduled meeting.

In retrospect, this was already a breach of Saudi Arabian business practices and expectations because it is not customary for Saudis to schedule a meeting with foreigners abroad. They strongly prefer to schedule any such meeting only after the foreigner has already arrived in Saudi Arabia. The prospective Saudi partner granted the meeting only because it would have been too awkward to refuse; on the other hand, this obvious ignorance of Saudi customs and expectations was already the proverbial "first strike" against the likely success of the venture.

Personal Introductions

The second set of mistakes committed by the foreigner hoping to do business in Saudi Arabia occurred in connection with the introduction phase of the meeting. Unlike American business customs, in Saudi Arabia, it is common for the host to serve a full multiple-course meal before ever discussing any business. Before that, it is customary for everyone in the room to be personally introduced to everyone else with a handshake. At that time, it is also expected that they will exchange their business cards as well.

Upon being introduced, the foreigner took each business card as it was offered. Because he is left-handed, he usually handed his own card with his left hand. Unfortunately, in Saudi Arabia (and much of the Middle East), the left hand is considered unclean because it is used for cleaning one's self. The hosts were too polite to say anything, but they must have been extremely uncomfortable with that element of the introduction and card exchange.

Making matters worse, all of the Saudi business cards were printed on both sides with Arabic on one side and English on the other. Each time cards were exchanged, the Saudis turned over the American's business card expecting Arabic on the back instead of a blank card. While this would have been excusable by itself, under the circumstances, it only further highlighted to the prospective business partners that the foreigner was simply not well prepared to conduct business in Saudi Arabia.

The American waited patiently (at least from his point-of-view) until the multiple-course meal was over and then began spreading out his materials for a business presentation. Since then, he has learned that this also is a violation of Saudi business etiquette. Generally, Saudi business people do not necessarily discuss business at all during the first business meeting. Instead, they tend to use the first (and often the second) meeting just to establish a rapport. Again, the Saudi business men did not refuse to entertain the business proposal, but in retrospect, that was also a serious breach of business practices, customs, and expectations.

Conclusion

Predictably, the individual's business proposal did not result in an acceptance or in any further business contact from the Saudi business people involved in the meeting. Since then, he has conducted business more successfully in Saudi Arabia, but to do so, he had to become much more familiar with Saudi customs and expectations. Today, he inquires about scheduling business meetings only after arriving in Saudi Arabia; he has business cards printed with Arabic on one side; and he realizes not to expect business negotiations during the first meeting. Most importantly, he does not hand anything to a Saudi using his left hand and he never crosses his legs to avoid accidentally offending Saudi hosts or visitors to his U.S. offices.