Boasting the largest economy in the Middle East, Saudi Arabia is a hugely influential economic superpower, thanks to being the world's biggest oil producer and exporter. But even though oil exports account for around 90% of the state's income, Saudi Arabia has been diversifying itself in recent years and branching out into new industries, like telecoms and petrochemicals.

Creating successful business partnerships in Saudi Arabia can reap incredible economic rewards. But as a conservative West Arab country, it's essential that business travelers understand and respect the nuances of business etiquette in order to make good impressions and influence your professional endeavors.

Punctuality

Hierarchy

Greetings

Business cards

Business attire

Gift-giving

Business meetings etiquette

Dining etiquette

Things to know about doing business in Saudi Arabia

Finding success in Saudi Arabian business culture

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Punctuality

Saudi Arabians are more flexible about punctuality and being on time, so don't be surprised or offended if your Saudi counterparts are running late or if meetings start late.

As a foreign visitor, though, you should still arrive on time as a sign of respect for your hosts. Be patient and understanding with any delays or late starts. Your Saudi business partner might appreciate your respect for their cultural time orientation.

Hierarchy

Saudi Arabian society places a high value on hierarchy and respect for elders and authority figures. Organizations have a clear system of hierarchy, which is strictly respected and followed. Decisions come from the top down, with the highest-ranking individuals holding the decision-making power. Even if they're not in the highest-ranking positions, elders should also be shown utmost respect and deference.

When engaging in business discussions, address or greet senior members of the delegation first. Maintain a courteous and deferential tone throughout your interactions, using appropriate titles, such as 'Sheikh' or 'Sayyid' for men and 'Sheikha' or 'Sayyida' for women.

Even though strides have been made toward improving gender equality in Saudi business and adding more women to the workforce, it's still primarily a male-dominated place. Even though the Quran states that men and women are equal in the eyes of God, in practice, women in most Islamic societies are expected to take care of the home and be obedient to their husbands.

As such, Saudi society is largely patriarchal. Foreign women doing business in Saudi Arabia may struggle with this cultural difference, as they may be taken less seriously than their male counterparts.

Greetings

Greetings in Saudi Arabia are warm and reflective of the country's Islamic culture. Men generally greet each other with a handshake, along with eye contact and a warm smile. When greeting women, wait for them to initiate the greeting.

You should also use honorifics while addressing individuals. A simple 'As-Salamu Alaykum' (peace be upon you) is a universally appreciated way to initiate conversations.

Even though the official language of Saudi Arabia is Arabic, many people in the Saudi business world speak very good English, and it's expected that meetings with foreigners will take place in English. But it's still polite to learn some basic Arabic phrases.

• Good morning – Sabaah al khayr
• Good evening – Aasaa' al khayr
• Good night – Tusbih äalaa khayr
• Nice to meet you – Forsa sa’eda or Tasharrafna
• My name is... – Ismii...
• Please – Min fadlik
• Thank you – Shukran

Business cards

As business cards are very important in Saudi Arabian business culture, ensure you bring a good supply so you have plenty to go around. One side should be printed in your native language, and it's good form to offer an Arabic translation on the other side. Stick to only essential information, like your name, contact information, and rank.

Present your card using your right hand, ensuring that the Arabic side faces your recipient. When you receive a card, put it on the table during the meeting instead of immediately putting it away.

Business attire

The business dress code is one of the most important aspects of Saudi Arabian business culture. Influenced by Islamic principles, business attire follows a formal, conservative dress code. Being put-together and professional-looking reflects well on you, so you should always show up to Saudi business engagements in formal business attire.

Men have a choice between Western-style suits of the traditional thobe (a white, ankle-length robe) with a head covering like the ghutrah. Women should dress modestly, covering their arms, legs, and hair. Even though some Saudi women may wear abayas (full-length black cloaks), foreign women are not expected to wear headscarves or head coverings.

Gift-giving

Gifts or baksheesh are not typically exchanged in Saudi business settings as they can sometimes be interpreted as a bribe. If you do decide to give your Saudi counterparts a gift, it should be done toward the end of business dealings instead of at the beginning. Make sure the gift is well-wrapped and presented with your right hand.

Due to Islamic tenants, gifts of alcohol, pork products, and knives should be avoided.

Business meetings etiquette

Even though many aspects of Saudi Arabian business culture are very formal, meetings are slightly more laid-back. Here's the general format for how a meeting in Saudi Arabia will go, as well as what you can expect during negotiations:

Scheduling and arrival

• Scheduling business meetings should take place around a month early, or as far in advance as possible.
• Arrive to the meeting on time in proper business attire.
• Be prepared to patiently wait in case your Saudi colleagues are running late.

Greetings and seating

• Once people arrive and proceedings can begin, start with the standard greeting of handshakes, smiles, and eye contact.
• Shake hands in the order of hierarchy, starting with the most senior person and working your way down.
• Exchange business cards during this time if necessary.
• Take your seats following the lead of the host.
• Meetings will usually begin with coffee or tea, as well as a period of small talk and socializing before diving into business matters.

Discussion and negotiation

• Saudi meetings are usually informal in terms of structure; if there is an agenda, it's common to deviate from it.
• Expect that discussions and negotiations will be long, as Saudis take a very measured pace to negotiations.
• If negotiating prices, don't be surprised if the first number thrown out is very high or very low; it's all part of the process.
• Never raise your voice; it's extremely poor form.
• Don't argue or become aggressive as a negotiation tactic; it won't be appreciated.
• Saudis can be very direct and critical during discussions, so don't be surprised or offended.
• Repeat your main talking points or arguments multiple times to show confidence and trustworthiness.
• Maintain eye contact during the meeting.

Conclusion and follow-up

• Wrap up the meeting with handshakes (while also respecting the level of hierarchy) and accept or extend any invitations for social outings.
• Follow-up with personalized and appreciative messages.

Dining etiquette

Business meals are an important part of the Saudi business world, as they offer opportunities for the two parties to get to know each other better outside of the office.

Many meetings will start with tea, coffee, and treats during small talk. If you're invited out for meals by your Saudi business colleagues, follow this dining etiquette:

• During meals, engage in courteous conversations that show respect for your hosts.
• Before beginning to eat, wait for the host to initiate.
• Use your right hand for eating, as the left hand is traditionally reserved for personal hygiene.
• It's customary to share food from a communal dish as a symbol of unity.
• It's okay to discuss business if your colleagues are also on board, but these meals are mainly a time to grow relationships. Ask more personal questions about things like sports, your colleague's families, hobbies, and other more general topics.

Things to know about doing business in Saudi Arabia

• Different weekends: In Saudi Arabia, the workweek lasts from Monday to Thursday, with Friday and Saturday being the weekend days.
• Midday break: It's common in Saudi business culture for workers to take a long midday break from noon to 4:00 pm to relax during the heat of the day. This does mean that the workday can extend up to 8:00 pm, however.
• Islamic influence: As the national religion, Islamic influence is felt throughout Saudi society and that extends to the business world as well. It's a good idea for foreigners to familiarize themselves with some of the basic principles and tenets of Islam to avoid causing offense or misunderstandings.
• Prayers: Expect that meetings or engagements may sometimes be paused when the Islamic call to prayer takes place.
• Personal relationships: Saudi Arabians like to have strong relationships with the people they do business with, which is why it's important to be patient during the early business relationship. The first meetings will be about getting to know each other and establishing a relationship before moving on to business matters. Creating strong, lasting relationships with your Saudi business partners is an investment and should not be rushed.
• Nepotism: Because Saudis place such high value on knowing and trusting the people they do business with, nepotism is quite prevalent throughout the business world. This can make networking and forming business connections easier and is viewed in a positive light.
• Small talk: Even though small talk is how you can get to know your Saudi colleagues better, there are still some topics you should avoid. Don't talk about potentially controversial topics, like the royal family, politics, and religion.

Finding success in Saudi Arabian business culture

In Saudi Arabia, business culture is centered around quality relationships which both parties invest in through time and effort. By making a strong connection and following the other rules of Saudi Arabia business etiquette, you can build strong relationships that pave the way for successful business ventures. As you immerse yourself in the rich tapestry of Saudi Arabian business culture, your efforts will undoubtedly be met with appreciation and reciprocity.

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