The Middle East - Business Culture and Practices

The countries of the Middle East cover a very large geographic area from Iraq and Syria through the Arabian peninsula and the countries of North Africa to the shores of the Atlantic.
The affluence of the oil based Gulf States and Saudi Arabia contrasts with some of the less economically endowed and highly populated countries of the Arab nation.

Since the oil boom of the 70's world business has tended to concentrate on the massive development programmes of the oil rich Gulf States of the Arabian peninsula, but now consumerism is also finding its place in densely populated countries such as Egypt. Mass markets already attract the attention of the world's global Companies, many of whom have established bases in these territories. Other businesses follow to extend their potential trade in these areas.
The Arabs of the Middle East have been successful traders for centuries, long before the discovery of oil. One will find willing and knowledgeable partners, but some study of the necessities of doing business within the Arab culture may smooth the path to success.

Business culture, practices and etiquette
The business culture tends to have a greater social element in its characteristics than its western counterpart. This is evidenced by the warmth of welcome in all forms of contact that is always provided and the expectation of similar response.

No Arab businessman would dream of opening contact in any form without an exchange of pleasantries, before settling down to the matters for discussion.

The Arab businessman is essentially a trader and whilst he may not possess certain specific technical sophistication that his western counterpart may be offering, he will be financially astute and additionally a quick learner.

He will prefer to do business with someone he likes, to the extent that he may choose to refuse possibly lucrative results, if he finds the business contact unfavourable. Conversely, one may be fortunate to find a long term business and personal friend.

Historically the people of the Gulf, in particular, are tribal. As such there will be particular alliances, some geographically far reaching. This can be particularly useful in building your business intelligence of contacts to make and perhaps to avoid. This type of knowledge when offered can provide opportunity.

A businessman, foreign to the region, will be expected to know his proposition thoroughly. Should any omissions be discovered in contractual conditions the Arab businessman will be expert in finding these to his advantage and will exploit loopholes - believing these to be 'fair game'.

On his part he will act within the letter of such arrangements and fulfil his obligations.

The Arab will always understand the financial element, which is of course the end objective.

The Arab cannot say no directly - so it is vital to listen carefully to responses to your proposition, to avoid misunderstandings.

Business and social etiquette demands shaking hands on greeting and leaving. A few words of greeting in Arabic and in understanding the responses will be greatly appreciated.

Refreshments, always offered, should always be accepted. The one occasion where this may be refused is out of deference to the host who will be fasting in the month of Ramadan.

Preparing for your trip
Obviously in the vast majority of cases appointments will be made prior to your journey. There may be some flexibility in timings since Arabs tend to be fatalistic by nature and not hold to exact arrangements.

An in-date passport is obviously necessary.

In certain States it may be necessary to have received an invitation from your business host/sponsor before the appropriate visa is granted. In any event it is vital to understand the entry requirements, particularly in the case of Saudi Arabia and many other nations.

Generally preventive health requirements such as inoculations are not compulsory, except in the case of obtaining residence/work permits.

If during your visit you intend to make presentations requiring audio/visual aids, it will be necessary to establish that your host can provide appropriate facilities.

Comprehensive preparation enabling clarity of your objectives should be evident and the possession of the facts to answer searching questions, available.

Successful meetings
Having done one's homework on your 'target' will ensure that one is addressing a potential success. It is well to remember that the Arab does not refuse to meet someone, this is not in his culture of hospitality - so valuable time could be wasted.

Sociability, cordiality, respect and a non-patronising attitude will go far in developing a successful conclusion. Aggression, the hard-sell, blasphemy and arrogance are very distinct negatives.
Good preparation of your proposition, experience and knowledge of your subject will be well received. Listen carefully and observe the non-verbals as well.

Having a business card with two-sided printing of your name and Company, together with communication details in your language and Arabic, is very useful. The Arabic should be a phonetic pronunciation.

Women in business
With the exception of Saudi Arabia, where officially women are not involved for business, women are generally well accepted in the business world.

Arguably they have to exhibit their business skills and acumen to a greater degree than their male counterpart, in order to be successful in the Arab world.

Women will be observed and encountered in all types of business endeavours as their traditional role of family nurturer extends beyond the household.

Dress code
Formal meetings call for formal dress. Lightweight suits, ties etc. Standard meetings are relatively informal requiring a business shirt and tie.

The Arab businessman in his native 'thobe' will always look formal and immaculate. Always err towards the formal, sloppiness will be construed as disrespectful.

Corporate hospitality
Entertaining in its various forms is widely used in business life, whether it be business lunches or dinners or more formal presentations.

The Arab believes that having shared one's food with another brings them closer together.

The difficulty arises in whether to provide alcohol on these occasions. A devout Muslim will no doubt be offended in the presence of consumption of alcohol. Others will not object and may themselves partake. Homework is required - if in doubt don't provide or offer alcohol.

Arab society is a 'gifting' society and in formal conferences it is standard practice to offer a small appropriate gift on guests' departure.

Conclusion
The Arab culture is complex and intricate and its understanding can be very rewarding. This brief view of fundamentals cannot give full justice to a fascinating way of life, but may open the doorway to seek further exploration.

Farnham Castle/Robert Hughes
Robert Hughes worked in the Gulf States and Saudi Arabia continuously for the past twenty years. During this time he has had experience at top management level for some of the world's leading advertising and marketing agencies and their clientele, most recently J. Walter Thompson and their Unilever business. From his base on the Arabian Peninsula, his remit latterly also extended to Syria, Lebanon, Jordan and onwards to Egypt. His book 'Living & Working in the Middle East' was published in 2002.