CULTURE AND INTERNATIONAL BUSNESS

THE KINGDOM OF SAUDI ARABIA

GROUP MEMBERS

Aditi Jalan

Bhavika Kalaani

Megha Bafna

Yashwardhan

Modi

THE KINGDOM SAUDI ARABIA

Located in the middle-east, bounded by Iraq,

Jordan, Kuwait, Oman, Qatar, UAE and Yemen

Important cities are Riyadh, Mecca and Medina

The ethnic make-up consists of 90% Arabs and

10% Afro-Asians.

Arabic is the official language. English is widely

spoken.

CULTURE OF SAUDI ARABIA

Islam is practiced by all Saudis and governs their

personal, political, economical and legal lives.

Family and tribe are the basis of the social

structure.

Saudis are cognizant of their heritage, their clan

and their extended families.

Nepotism is considered a good thing.

COUNTRY CLUSTER.

ETIQUETTE AND CUSTOMS

Men shake hands. Women generally hug and kiss

close friends but men and women would not greet

each other in public

If you are invited to a Saudi’s house bring something

small as a ‘Thank you’ since gifts are not accepted.

Entertainment will generally be same-gender only. If

both sex are included, they will be in separate rooms.

CULTURAL LEARNING PROFILE

BUSINESS STRUCTURE

The business culture in Saudi Arabia is developed around a

family unit, with all key employees coming from the extended

family.

It is a non-egalitarian structure.

Business is developed along strongly hierarchical lines, with

majority of power being held at top by senior or older family

members.

This shows that the power distance (80) is high and they have a

collective (62) approach.

MANAGEMENT STYLE

Having a strongly hierarchical structure, managers

tend to be very instructional in their approach

Subordinates view it as the boss’ role to take

decisions and convey it down the chain of

implementation

They believe that leaders lead and followers follow

FORMAL MEETINGS

Prior appointments are necessary several weeks in advance

Arriving on time for the meeting, although it is an accepted

custom to keep foreigners waiting (synchronic/polychromic

orientation)

Meetings are generally not private until after a relationship

of trust has been developed

Business meeting start after prolonged inquires about

family, health etc. “Never inquire about Saudi’s wife”

TIME ORIENTATION

The Arab’s have a Polychromic cultural approach towards time.

Work days: Saturday – Wednesdays. No work during Islamic

prayer times: observed five times a day.

Past-orientated because it values its traditions, history and

cultural roots

This is especially because of the strong sub-cultural association

In Islam, man does not determine his future only God does

COMMUNICATION STYLES

Saudi Arabia is considered a very high context

culture.

Particular emphasis is placed on tone of voice, the

use of silence, facial cues and body language.

For instance, silence is often used for

contemplation and you should not feel obliged to

speak during these periods.

Maintaining private and public proximity is

important.

WOMEN AND BUSINESS

Women in Saudi Arabia make up between 5% to

15% of the work force.

Saudi sharia (Islamic law) allows women to work

provided it does not lead to her neglecting essential

duties of home making.

Any woman visiting on business needs to be very

conservative in both their dress code and behavior.

BUSINESS DRESS CODE

Visitors to Saudi are expected to dress in a very

conservative manner.

Men should wear formal clothing whereas women

should wear business suits (not trousers), where

there is no exposure of skin at all.

Expatriate should not be wearing traditional Saudi

costume as it may look bizarre or offend the local

Saudis.

CULTURAL DIFFERENCE.

NEGOTIATION

Saudi’s are tough negotiators.

The society being extremely bureaucratic, most

decisions require several layers of approval.

There is a tendency to give bad news and give

effusive acceptances, which may not mean ‘perhaps’.

Decisions are made by the highest ranking person.

MARKET STRATEGY

CONCLUSION

Saudi Arabia’s high uncertainty avoidance will probably create high

barriers of entry which will reduce their international trade.

Discouragement of innovation and creativity due to the

unwillingness to take risk.

High power distance affects the laws and regulations due to the

unlimited power and authority by the government .

Saudi Arabia is an extremely conservative country and therefore all

expatriates are expected to act accordingly.

NOTE : VIDEO!

REFERENCES

http://goliath.ecnext.com/coms2//gi_0199-6814349/Cultural-barriers-to-im

proved-organizational.html

(Accessed on: 2nd December’11)

http://internationalbusiness.wikia.com/wiki/Expatriates-living-in-Saudi-Ar

abia

(Accessed on:1nd December’11)

http://www.cybrolink.com/besite/saudi-arabia.htm (Accessed on:4nd

December’11)

http://www.worldbusinessculture.com/Saudi-Arabian-Business-Negotiatio

n.html

(Accessed on:3nd December’11)

http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-c

ountry-profile.html

(Accessed on:3nd December’11)

THANK YOU