Saudi Arabia has one of the fastest growing economies, and it is now home to a wide range of travelers, professionals and organizations.

1. DOING BUSINESS IN SAUDI ARABIA BY

2. 2

3. ECONOMIC
SYSTEM
• Oil-based economy
• Mixed Economy
• Opportunities

4. CULTURAL DIMENSION AS EXPLAINED BY
HOFSTEDE MODEL:
• Power Distance
• Uncertainty Avoidance
• Individualism
• Masculinity
• Long Term Orientation

5. ▪ POWER DISTANCE:
It describes the extent to which members of society
accept uneven distribution of power.

6. ▪ UNCERTAINTY AVOIDANCE:
• Deals with society’s tolerance for uncertainty and ambiguity.
• Maintain rigid codes of belief and behavior.

7. ▪ INDIVIDUALISM:
Individuals are expected to take care of only themselves while
collectivism represent a society.

8. ▪ MASCULINITY:
Masculinity and femininity revolve around a emotional role
distribution between genders, which is again a prime issue
in numbers of societies.

9. ▪ LONG TERM ORIENTATION:
Long term orientation is when you are focused on the future.
While short term orientation when you are focused on the
present or past.

10. SAUDI ARABIA CULTURE AND TRADITIONS :
• Religion and belief
• Major celebrations
• Family Values and Customs
• Gender Roles
• Social Stratification
• Meeting & Greeting
• Dress code
• Food
• Arts

11. RELIGION AND BELIEFS:
• Islam.
• 5 daily prayers (local newspaper or TV).
• Ramadan(holy month).
• Friday(holy day).
MAJOR CELEBRATIONS:
• Eid ul Fitr (1st shawal)
• Eid ul Adha (10th of Zill-haj)
• Saudi National day (23rd September).

12. FAMILY VALUES AND CUSTOMS:
• With a score of 25(collectivistic)
• Large extended families, nepotism.
• Gift giving (alcohol and flowers to women)
GENDER ROLES:
• With a score of 60 (Masculinity)
• Male dominated society.
• Women role in family(nurturer and bedrock).

13. SOCIAL STRATIFICATION:
• With a score of 95(Hierarchy).
• Subtle divisions(tribal affiliations, location, levels of education).
• Saudis link with royal family (power and influence)
MEETING AND GREETING:
• Hand shake and a kiss on both cheeks.
• Men and women would not greet each other in public
• Women generally hug and kiss their close relatives/friends(only female).

14. DRESS CODE:
• Men (Thobe: white dress).
• Women (Abaya: black cloak/gown).
FOOD:
• Kabsa (rice with a roasted meat (lamb, camel or chicken)
• Traditional staple foods(dates, wheat, meat, rice, dairy products).
• Popular drinks(teas and coffee).
• Alcohol and not ritually slaughtered meat is prohibited.

15. ARTS:
• Arabic Literature and Classical Arabic poetry.
• Calligraphy(Arabic painting).
• Traditional dance with swords.
• Football(soccer).

16. Dos and Don’ts for Saudi Arabia:
AVOID MAKING
JUDGMENTS
BASED ON YOUR
OWN SOCIETY
DONOT
SPEAK
ABOUT
RELIGION
NEVER EVER
TALK ABOUT
ISLAM OR
MUSLIMS
DO NOT
CONFRONT AT
WORKPLACE,
BE POLITE &
POLITICAL
KNOW THE
SOCIAL
PRACTICE /
ETIQUETTES
NEVER TALK
ON ANY
POLITICAL
ISSUE

17. MUST REMEMBER THAT…
• Meetings are arranged by a Saudi contact person.
• Hosting visitors is a virtue among Saudis.
• Do not bring any non-Islamic religious items
• Genders are separated in any public activity.
• Obey to the Saudi dress code (cover arms and legs).

18. BUSINESS CULTURE & ETIQUETTE TIPS:
MANAGEMENT
WHAT TO WEAR
TITLES
MEETINGS
NEGOTIATING

19. What to Wear
• Men should wear suits and ties when
in a professional capacity.
• During summer you are not expected
to wear the jacket but at least have it
over your arm.
• Colors should be kept conservative
and traditional.
• Women should wear conservative
business attire, again in neutral colors.
• Foreigners should not wear any local
dress to business meetings as it would
look bizarre.
• You will soon learn someone’s title
either by others or how they
introduce themselves.
• Titles within business are usually
associated with rank, job title, family
and other factors.
• As a foreigner you will be called
Mr./Mrs. and your first name.
• Saudis are often addressed with titles
such as Professor, Chairman, Your
Highness, etc.
• Appointments should be made several
weeks to one month in advance.
• When meeting with government
officials, a firm date will not be settled
upon until you are physically in the
country.
• Try to schedule meetings in the
morning.
• Arrive at meetings on time, although
it is an accepted custom to keep
foreigners waiting.
• It is not uncommon to have a meeting
cancelled once you arrive.
Titles Meetings

20. • Decisions are made slowly. Do not try to rush the process.
• The society is extremely bureaucratic. It takes several visits to
accomplish simple tasks.
• Saudis are tough negotiators and demand patience.
• Business is hierarchical. Decisions are made by the highest-
ranking person.
• Repeat your main points since they will be interpreted as
meaning you are telling the truth.
• When discussing price, Saudis will often make an initial offer
that is extremely low when they are buying and vice versa.
• Managers along with the major stakeholders are the decision
makers.
• Once a decision is made, it is handed down to subordinates
to implement.
• Saudi Arabia is a low risk and low change-tolerant culture.
• It’s advisable to reinforce the importance of the agreed-upon
deadline.
NEGOTIATING MANAGEMENT

21. WHY DOING BUSINESS IN SAUDI ARABIA:
➢Interest Free Loan
➢Oil And Natural Wealth
➢International Environment
➢No Corruption
➢Strong Legal System
➢Low Tax Base System

22. SUCCEEDING IN BUSINESS:
➢NEGOTIATION:
• Trust
• Circular Nature of Negotiation
• Repetition and Honor
• Win and Win Situation

23. • Who You Know Basis.
• Create Comfort Level
• Formality
• Greeting
• Take Care of Namaz Schedule
• Arab Customs
• Business Cards
➢ MEETINGS:

24. SELECTING BUSINESS PARTNER:
➢Geographic Focus
➢Level of Input and Contacts
➢Experience

25. OTHER CONSIDERATIONS:
➢Weather and Holidays
➢Business Centers
➢Suggestions

26. ‫شكرا‬
‫لكم‬