Saudi Arabia Culture and Doing Business There
This paper examines the cultural landscape of Saudi Arabia and its direct implications for foreign businesses seeking to operate in the kingdom. It explores how religion, gender roles, and traditional social values shape daily life and commerce in Saudi Arabia, highlighting key differences from Western business environments. The paper addresses practical considerations such as religious observance during Ramadan, gender segregation in the workplace, dress codes, dietary restrictions, and the importance of personal connections (wasta) in building customer loyalty. It also identifies additional business costs that cultural compliance may generate for companies entering the Saudi market.
- Introduction: Culture and Its Role in Business: Defines culture and its business relevance
- Key Cultural Considerations for Teams Traveling to Saudi Arabia: Overview of Saudi versus Western cultural differences
- Religion and Its Influence on Commerce: How Islamic practice shapes Saudi business operations
- Gender Roles and Societal Norms: Gender segregation and its impact on business interactions
- Traditional Values and the Concept of Wasta: Personal connections as a foundation for customer loyalty
- Business Cost Implications of Cultural Compliance: Additional costs arising from cultural and religious requirements
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What makes this paper effective
- It grounds abstract cultural concepts in concrete, recognizable business examples (e.g., McDonald's closing during prayer time), making the analysis accessible and practical.
- The paper moves logically from broad cultural definition to specific Saudi traits and then to actionable business cost implications, giving the argument a clear practical payoff.
- It consistently connects cultural observations back to business strategy, avoiding the trap of describing culture for its own sake.
Key academic technique demonstrated
The paper demonstrates applied cultural analysis — taking theoretical concepts (values, beliefs, attitudes) and systematically mapping them onto a real business environment. Rather than simply listing cultural facts, it evaluates each cultural trait for its operational and financial impact on a foreign business, which is a hallmark of international business writing.
Structure breakdown
The paper opens with a definition of culture and its relevance to international business, then narrows to Saudi Arabia specifically. It proceeds through three primary cultural themes — religion, gender roles, and traditional values — before synthesizing these into a discussion of additional business costs. The references draw on practitioner-focused international business texts, appropriate for an undergraduate-level applied analysis.
Introduction: Culture and Its Role in Business
The term "culture" refers to the complex accumulation of knowledge, folklore, language, rules, rituals, habits, lifestyles, attitudes, beliefs, and customs that link and provide a general identity to a group of people. Culture takes a long time to build — it may take generations to develop. It therefore becomes very difficult to move to another country and communicate meaningfully with that culture. A study of the cultural traits and traditions of Saudi Arabia can help any sales or business development team understand the prospects of introducing products in the kingdom, given the cultural environment that prevails there (Shoult, 2006).
As already noted, the culture of a country or region is defined by and based on the beliefs, values, and attitudes of the people residing there or those who have been shaped by these factors. Often these values, beliefs, and attitudes become the backbone of a nation's operating environment — and this applies directly to business and trade (Shoult, 2006).
Key Cultural Considerations for Teams Traveling to Saudi Arabia
The culture of Saudi Arabia is significantly different from that of Western countries, including those in North America and Europe. Foreign business teams must be aware of several critical cultural dimensions before engaging with the Saudi market.
Religion and Its Influence on Commerce
One of the most important factors to keep in mind is religion. In Saudi Arabia, religion exerts a profound influence on business life. For example, the sale of pork or alcohol is prohibited due to Islamic beliefs. In keeping with the country's religious culture, restaurants do not serve food during the day in the holy month of Ramadan, as Muslims fast from dawn to sunset. Businesses frequently close their doors or dim their lights during the call to prayer each day. Even global companies such as McDonald's comply with this practice.
To accommodate the cultural and religious expectations of customers, many outlets and companies convert revenue-generating areas into prayer spaces during prayer times. For any foreign business entering Saudi Arabia, understanding and respecting these religious practices is not optional — it is a fundamental requirement of operating in the country.
References
Keillor, B., & Wilkinson, T. (2011). International business in the 21st century. Santa Barbara, CA: Praeger.
Morrison, T., & Conaway, W. (2006). Kiss, bow, or shake hands. Avon, MA: Adams Media.
Shoult, A. (2006). Doing business with Saudi Arabia. London: Global Market Briefings.
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