- Saudi Arabia has a merchant culture focused on building relationships and bargaining skills. Respect is based on status, rank, and age. - Communication is indirect and meetings take a long time. Negotiations are also slow and prolonged. Flexibility is expected from both sides. - Decisions are made with the organization's welfare in mind through clear hierarchies. Personal feelings weigh more than facts. Contracts are viewed as guidelines rather than strict legal documents. Saving face and maintaining friendly relationships are crucial.

1. Saudi Arabia
Ihab Itani
Negotiation and Conflict
Resolution
3/7/2014

2. 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

3. 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.

4. 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

5. 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.

6. 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

7. 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.

8. 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.

9. 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

10. 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.

11. 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

12. 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

13. 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.