Globalization and Business Customs in Saudi Arabia

Introduction to 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 the 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 offense. In general, adapting to local customs and social expectations always facilitates business relationships, particularly in cultures that emphasize personal interactions and rituals in a professional environment.

Conducting Business Meetings in Saudi Arabia

Saudis often decline formal invitations to business meetings with foreigners until those foreigners 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 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 a handshake before taking a seat, and may also exchange business cards. Their cards are usually printed on both sides, in Arabic and English. While Saudis understand that this is not common practice in the United States, presenting a business card of the same bilingual 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 personal hygiene. 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 person in any manner. One should therefore 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 typical American business practices, Saudi business meetings are not always conducted in a confidential or private setting, and may often be interrupted by telephone calls or additional greetings that Westerners would consider impolite during a meeting. Business meetings in Saudi Arabia can be fluid and social in character, reflecting the broader cultural value placed on hospitality and relationship-building.

Physical Contact, Personal Space, and Nonverbal Norms

As is customary in other parts of the world, Saudis have a different sense of personal space than many Westerners, and may stand much closer to each other when talking. Likewise, they typically incorporate physical gestures and touches more than Americans, especially in the context of positive rapport. It may therefore be taken as an insult if someone steps back to create more personal space or withdraws from their physical gestures. Doing so during negotiations may be perceived as a sign of disagreement or reluctance regarding the substantive matters under discussion.

Understanding these nonverbal norms is essential for any foreign professional operating in Saudi Arabia. What feels like a natural reaction in a Western context — creating distance or limiting physical contact — can carry unintended negative meaning in a Saudi professional setting. Awareness of these differences, as discussed in cross-cultural management literature, is a foundational skill in intercultural competence.

References

Hughes, R., & Chesters, G. (2003). Living and Working in Gulf States & Saudi Arabia. Survival Books: London.

Parker, N. (2006). Your guide to Saudi Arabia. Accessed October 6, 2007, at http://www.executiveplanet.com/index.php?title=Saudi_Arabia

Virgilia Moran, S., Harris, P., & Moran, R. (2007). Managing Cultural Differences: Global Leadership Strategies for the 21st Century.