Saudi Arabia

Ihab ItaniNegotiation and Conflict Resolution

3/7/2014

Introduction

• Country`s culture is quite identical

• Kingdom of Saudi Arabia produced very little.

• Primary activity was trading

• They had a merchant culture that helped the country to become intelligent and highly skilled bargainers.

• Younger generations were experienced in interacting with visitors from other cultures

Relationship & Respect• In Business culture the respect a person has

depends on the status, rank and age of the other party.

• Its about building lasting and trusting personal relationships.

• Establishing relations with others can create powerful networks

• Third parties can play an important part by being the starting point

• Building and maintaining a friendly relationship is crucial.

• Saving face is very essential.

Communication

• Communication is indirect it takes a lot of time to get to the point.

• When communicating use short, simple sentences avoid using slang and try to speak slowly so they can understand.

• Saudis usually speak quiet, gentle way and a raised voice could indicate anger. Always keep the conversation at low level being loud can been seen as bad manners.

• Saudis love flowery phrases and exaggerations

Gestures & body language

• Men tend make frequent physical contact

• Greeting each other by hugging and kissing is seen as a sing of friendship.

• Pointing at objects is impolite

• Eye contact should be frequent, almost to the point of staring

- it shows sincerity and helps builds trust

• Showing emotion in a controlled way.

Initial Contact & Meetings

• A local Intermediary (Sponsor) is important to leverage existing relationships. This person will help to bridge the gap in between the cultures allowing greater effectiveness.

• Meetings scheduled at least three to four weeks in advance.

• First meeting consists of small talk about, personal issues, family, health. etc

Avoid being more than 15-20 minutes late

Greeting usually goes from the most senior to everyone else

Offer your business card show your status, take there card place it in front of you

Negotiation

Attitudes & Styles

- Both sides will work towards long term commitments from both sides and focus on long term benefits.

- Saudis are willing to compromise and settle for a win – win solution as both sides remain clam, friendly, patient and never take anything personally.

Pace of Negotiation

• Negotiations are slow and prolonged, be patient and control your emotions, try to accept the delays

• Saudi Proverb warns “Haste is of the devil”

• First deals are usually accepted and the in future bigger profits tend to come once you mange to prove yourself as a worthy partner.

• Saudis prefer a very polychroinc work style (Jumping from one topic to the other)

• Keep track and always emphasize your areas and repeat yourself.

Bargaining • Expect flexibility from both sides

• Prices often move more than 50% between initial offers and final agreement

• Have different concessions to different levels

• Deceptive techniques are used by telling lies and sending fake non verbal messages . ( Trying to show disinterest in the deal or a even a concession)

• Misleading to obtain bargaining advantages.

• There is a line between Bribery and gifts, what you may think as of a bribe, Saudis view it as a gift

Decision making

• Company Hierarchies are very rigid (Working through clear line of authority)

• Decisions are made to the welfare of the organization

• Final decisions are delegated downwards

• Saudi Businesspeople don’t rely much on the law

• Personal feelings and experiences weigh more that facts.

Agreements & Contracts

• Contracts are viewed as guidelines for conducting business.

• Terms can be changed but Saudis believe that the primary strength of an agreement lies in the pattern's commitment rather than in its written documentation.

• Consult a local legal before sinning a contract but never bring your attorney to the negotiation table. That`s a sign of mistrust

Women In business

• Women have traditional roles in the community but still there roles don`t attain similar income or authority as men.

• Women have many restrictions

• Displaying confidence can be counter productive

• They need to dress in accordance with local customs

• Avoid brining u the subject of women with you male business partner

Other important things

• Impeccable appearance is very important when doing business.

• Male business visitor's should wear suits .

• Tea will be served at many occasions, always accept it

• Social events don`t require strict timing you can arrive there from 15 to 30 minutes late.