Guide of Cultural Differences for Saudi Arabia August 2014 Author: Catherine Connolly, MS CPLP for internal use only. Primary Source: SHRM.org Table of Contents Hierarchy ....................................................................................................................................................... 3 Relationship orientation ............................................................................................................................... 4 Greetings ....................................................................................................................................................... 4 Business Cards............................................................................................................................................... 5 Gifts ............................................................................................................................................................... 6 Business Hours .............................................................................................................................................. 6 Business Attire .............................................................................................................................................. 7 Making Appointments .................................................................................................................................. 7 Gestures & Body Language ........................................................................................................................... 8 Dining, Entertaining & Hosting ..................................................................................................................... 9 Conversation Topics .................................................................................................................................... 12 Attitudes toward Foreigners ....................................................................................................................... 12 Attitudes toward Business & Money .......................................................................................................... 14 Women in Business ..................................................................................................................................... 14 Business Ethics ............................................................................................................................................ 15 Work-Related Recreation & Benefits .......................................................................................................... 16 Geography/Climate ..................................................................................................................................... 17 Communication Styles ................................................................................................................................ 18 Basic Phrases: .............................................................................................................................................. 19 Establishing Credibility ................................................................................................................................ 20 Obtaining Information ................................................................................................................................ 20 Persuading Others....................................................................................................................................... 20 Presenting Ideas .......................................................................................................................................... 21 Managing Meetings .................................................................................................................................... 21 Virtual Communication ............................................................................................................................... 23 Conversation Topics .................................................................................................................................... 24 Effective Leadership Styles ......................................................................................................................... 25 Recruiting & Hiring ...................................................................................................................................... 25 1|Page Motivating Employees ................................................................................................................................ 26 Giving Feedback & Evaluating Employees .................................................................................................. 27 Resolving Conflict ........................................................................................................................................ 28 Making Decisions ........................................................................................................................................ 28 Building Relationships ................................................................................................................................. 29 Negotiating.................................................................................................................................................. 29 Selling .......................................................................................................................................................... 30 Dining, Entertaining & Hosting ................................................................................................................... 31 Training & Coaching .................................................................................................................................... 34 Questions and Answers .............................................................................................................................. 35 2|Page Business Skills Hierarchy Families: Hierarchical structures exist not only in the organization of a company but also in the makeup of families. The father is the clear head of the household, with the eldest son next in line as a sort of father figure for his siblings. Younger siblings tend to do what an elder brother asks without questioning his judgment, similar to the way an employee will heed the direction of a superior. Elder male members of a family or business are revered and highly respected. They will be given the place of honor at a dinner, for example, and are generally treated in a deferential manner. Society: There is also a distinct sense of social hierarchy in Saudi Arabia, and many foreigners, other than North Americans and Europeans, are often perceived as having a lower status. Saudis often prefer to work in management positions. Many lower-level jobs are filled by other people (for example, expatriates from India, Bangladesh, or Indonesia). North American or European businesspeople may be treated as peers or guests, but their treatment is strongly tied to the quality of relationships they are able to build with their Saudi hosts. Business: Because the traditional clothing (thobe) is the same style for everyone, regardless of their position, the quality of the cloth may be the only indication of a person's status. It may be difficult to discern your counterpart's position in the hierarchy based on appearance, but you will most likely be dealing with someone whose status is equal to yours. Status: Those of higher status, such as a president or CEO, usually do not initially meet with foreign businesspeople that are not of the same rank. Someone who is closer to the foreigner's rank is usually assigned to handle most business. Only after a relationship has been built and the foreign businessperson has proven that he is trustworthy and serious about doing business will he be introduced to those at higher levels. See also: Attitude toward Foreigners Respect: Respect is very important to the Arab people, and this is evident in both business and social settings. Due to cultural differences in evaluation criteria, there have been occasions in which foreign businesspeople assumed that their Saudi counterparts were not as competent or as knowledgeable as they actually were. In these instances, when Saudis feel they have not been given the proper respect, they can be quite offended, and the relationship can be irreparably harmed. Respect for titles/elders: It is very important for visitors to show respect toward elders and those with titles. Using titles is seen as a way to show esteem for the person's accomplishments and their prominent rank in society. Respect is also tied to the level of education achieved and where it was received. Those with a higher degree, especially one earned outside the Middle East, especially in Britain or the United States, are much more revered. See also: Names & Titles 3|Page Relationship orientation Relationships are very important in Saudi Arabia. The tribal roots of Saudi culture are evident today in the form of extensive networks that are usually closed to outsiders. It will therefore be extremely difficult to conduct business efficiently without building strong personal relationships. Since Saudis are reluctant to do business with those whom they do not know personally, it is important that foreign businesspeople spend the time necessary to get to know their Saudi colleagues, in order to establish trust. Separation of work and social/family life: Saudis are interested in building friendships with their foreign counterparts. However, there is a clear separation between family and work life. Families are not included in work activities, and wives and daughters will most likely not be introduced to guests visiting a Saudi home. Friendship is based more on conversations with counterparts that do not revolve around family life. See also: Conversation Topics For example, it would be inappropriate to ask your Saudi colleague about where he met his wife, or to ask to see a photo of his family or visit him at home. Saudis do not give out their home number, as they would not want to create an uncomfortable situation where you could possibly talk with their wife or other family members. Foreign managers should not try to get involved in an employee's personal life, but rather keep the relationship strictly professional. Hospitality: It is considered a virtue to be a good host, and Saudis typically enjoy entertaining foreign guests. They show respect for their visitors by serving them first, opening doors for them, and spending time getting to know them. This hospitality is an indication of their admiration and how much they appreciate being with the other person. Trust: Saudis typically cherish friendship and feel that trust is one of the most important aspects of the relationship. Once trust has been established, the door to business interactions will be opened, as Saudis will be more likely to make further introductions. In a society where knowing the right person is essential to conducting business successfully, those introductions can be invaluable. Saudis often want to go beyond business discussions and get to know business partners as a person in order to build trust. Those who talk solely about business deals may appear to be interested only in Saudi colleagues' money and give the impression that they will leave once they have achieved their immediate business or financial goals. Honesty is very important as well, and Saudis are not likely to give someone a second chance once they feel the person has been dishonest or untrustworthy. Breaking one's word can destroy a person's reputation and reflect badly on the entire company. Greetings Saudis appreciate foreigners who learn some Arabic greeting phrases, such as masa al-khair (good evening), ma`as-salaama(good-bye), and marhaba (hello). Handshake: Saudi men who are accustomed to working with foreigners will generally shake hands with both men and women. Men who do not shake hands with women refrain from doing so as a way of showing respect for women; however, this is sometimes misinterpreted. Women should wait to see if the other person offers a hand and should not initiate the handshake. Traditional greeting: A more traditional form of greeting between Saudi men is to exchange kisses on each cheek as they shake hands and place the left hand on the other person's shoulder. It is best that foreign businesspeople follow the lead of their Saudi counterpart. When entering a meeting room 4|Page full of people, a Saudi will greet each person individually and shake hands. If seated, the person they are greeting should stand to shake hands. Greeting women: If a veiled woman is present, she may not be introduced, as Saudi women do not normally participate in business directly with men. This situation is changing, however, and in some areas, women and men work together. It should be noted that women in business should be treated with the utmost respect and courtesy. On the rare occasion they are introduced, it is best to greet them simply and do not offer to shake their hand. It would be unusual for a Saudi man to introduce a foreigner to his wife/wives or daughter(s). Even if invited to a Saudi counterpart's house, foreigners may not be introduced. Names & titles Names are written with the title, followed by the first name, middle name (often patronymic), and then family name. When addressing an Arab, even at the first meeting, it is best to use only the first name or the first name and title. For example, Asyed Bilal would be called "Asyed" or "Mr. Asyed." Using the first name is not a sign of familiarity as it is in some other cultures. The last name is not used except in written form. Abu — which means "the father of," followed by a name — is a sign of familiarity. For example, a man whose son is named Muhammad would be called Abu Muhammad. Sometimes men will be referred to as Abu as a sign of familiarity even if they do not have a child yet. This term should not be used in a business situation, and only after you have gotten to know an individual well. Bin means either "son of" or "from" and is often placed before the family name. For example, "bin Mubarak" could mean that he is the son of Mubarak or is from the town of Mubarak. Usually it indicates the former. It can occur more than once in a person's name. Foreigners should be sure not to mistake Bin for the Western name Ben. Bint. Women are referred to as "the daughter of," or bint. For example, "Princess Fatima bint Ibrahim al-Saud" translates as "Princess Fatima, daughter of Ibrahim, of the house of Saud." Abd. Abd sometimes precedes a person's name and is followed by al- and an attribute of God. Dr. Abd Al-Rahman Al-Hajj would be addressed as "Dr. Abd Al-Rahman" and not as "Dr. Abd" or "Dr. Abd Al." If an individual's grandfather was, or is, a famous person, the grandfather's name is sometimes added to the end of the individual's name, after the family name. Titles: Those with titles should be addressed by their title followed by their first name. For example, Dr. Ahmed Bin Al-Rahman would be addressed as "Dr. Ahmed." Referring to someone as "Dr." does not always mean he is in the medical profession, but could mean he has a higher degree. Sheikh is a title used for respected and important leaders, particularly an elder or a religious leader. The title does not indicate royalty. "Your Excellency" is the proper way to address a Saudi minister. Business Cards Unlisted numbers are common among Saudis, so it is important to check whether or not the number is included on the card. If it is not, foreign businesspeople should wait for their counterpart to offer to add his cell phone number. See also: Virtual Communication — Cell phones *Business cards printed in English on one side and Arabic on the other are appreciated, but are not always necessary. 5|Page Gifts Importance in business/local norms Gifts are generally seen as a gesture of goodwill. Ideally, gifts should reflect knowledge of counterparts' hobbies and interests as an indication of the personal care taken in selecting something for them. It would not be appropriate to bring a gift to a first meeting with a business associate, but gifts are appreciated as a more personal token once the relationship has been developed. Appropriate gifts Appropriate gifts include items related to the person's hobbies and interests (a more personalized gift implies a closer relationship); a specialty from your hometown or region; office-related items such as engraved pens (gifts with company logos are appreciated); and flowers. Inappropriate gifts Foreign businesspeople should keep in mind that men are discouraged from wearing gold or silk, so gifts made of these materials should be given only to women. Visiting businessmen should avoid giving gifts to Saudi women, as a rule. Gift-exchange protocol Gifts should not be presented with the left hand, which is considered dirty. Foreign businesspeople should be careful with their compliments. If they admire something (for example, a piece of jewelry or an object) in someone's home, their Saudi host might present them with the object of their admiration, and it would be rude to refuse. Business Hours Typical business hours Effective June 29, 2013, the official work week in Saudi Arabia was changed by royal decree to Sunday through Thursday. (Friday is a Muslim holy day, and previously, most people took Thursday and Friday off as the weekend.) Office hours vary. Government office hours are from 7:30 to 14:30 (2:30 pm), and bank hours are from 8:30 to 12:00 and 17:00 to 19:00 (5 to 7 pm). Summer hours: In summer, people often conduct business in the cool of the evening, working from 9:00 to 12:00 and 16:00 to 22:00 (4 to 10 pm). Lunch Most businesses close for the afternoon and reopen later for a few hours. Some offices may close for only one hour at lunch. Times to avoid Although there are varying degrees of adherence to Islamic laws, most people pray five times a day: at daybreak, noon, mid-afternoon, sunset, and evening. The break for prayer means that shops close and business appointments are usually not scheduled during this time. 6|Page Business Attire Foreign businesspeople should dress conservatively for initial meetings with Saudis, as a neat appearance shows respect for those with whom one is meeting. Appropriate attire usually depends on the norm within each company. Business casual is common at many companies. For external meetings, however, most people tend to wear formal attire. Some multinational companies have uniforms for all the employees. This creates a sense of equality among the employees. For men Saudi counterparts will most likely be wearing a thobe (robe) and a ghutra (red and white or white scarf worn over the head and secured with a band of black fabric). A very formal robe will be worn over the thobe for special occasions. White scarves are worn more commonly in the summer. Some businessmen who have had extensive exposure to other cultures may wear Western business clothes. Gold jewelry and silk for men are prohibited by the laws of Islam and must not be worn. For women Businesswomen in particular need to dress very conservatively, covering their shoulders and arms and wearing long skirts. Blouses with long sleeves and high necklines are the most appropriate. Bare shoulders are not acceptable. In addition, although it is not mandatory, it is a sign of respect for a woman to cover her head, especially if she has light hair, which might attract attention. This holds true, especially in conservative parts of the country. Saudi women who are involved in business dress very conservatively, usually wearing a long headscarf or veil and often an abaya (black robe). When seen outside a business context, a Saudi woman will often be clothed in the traditional veil and abaya. Casual dress: As it is inappropriate for both men and women to reveal bare shoulders, the stomach, calves, or thighs, shorts and tank tops should not be worn in public, even for jogging or other forms of exercise. It should be noted that anyone wearing immodest or inappropriate dress — including foreigners — could be arrested or detained. Making Appointments Scheduling appointments Counterparts may be reluctant to make appointments until a foreign visitor has arrived in Saudi Arabia. For best results in scheduling appointments, it is best to inform Saudi contacts about travel plans prior to arrival, and call again after arrival to confirm an appointment. When setting up an appointment, it is best to send a fax or e-mail summarizing the reason for the meeting request and the subjects to be discussed. When meeting with Saudi government officials, it is best to try to make appointments for the morning; government officials are not supposed to work more than six hours a day. Punctuality Westerners are generally expected to be punctual. However, it is considered normal for the Saudi businessperson to arrive 10-15 minutes after the scheduled time. Saudis, and Arabs in general, tend 7|Page to have a flexible view of time. For Arabs, the view of time is a cultural trait and has nothing to do with religious beliefs. Times to avoid It is best not to make appointments during Ramadan, the month during which all adult Muslims fast from sunrise to sunset. Daily business and activities still occur during this time, but the schedules may be more sporadic due to exhaustion resulting from fasting and nighttime food preparation. It is also important to be aware that government offices and most businesses will be closed for the ten days after the break of the fast ('Id-al-Fitir) as well as the week following the annual pilgrimage (Hajj) called the Feast of Sacrifice ('Id-al-Adha). Prayer breaks. Foreign businesspeople should be aware of prayer breaks (at daybreak, noon, midafternoon, sunset, and evening). It is best to avoid setting meeting times that would require an interruption of a meeting for such a break. Writing dates & times It is important to check the dates for religious holidays, as Saudi Arabia uses the lunar Hijri calendar and the dates on the Western (Gregorian) calendar are different every year. A web-site link to convert Gregorian dates into Hijri dates is http://www.rabiah.com/convert/. Gestures & Body Language Personal space & physical contact Saudis are accustomed to very little personal space, and a conversational distance that is comfortable for them often makes Northern Europeans and U.S. Americans uncomfortable. There is also much physical contact in conversation that is meant to emphasize a point or confirm that the speaker has your attention. It is important that foreign businesspeople not draw back, as this may be interpreted as a disregard or rejection of what is being said. Saudi men may hold hands or keep an arm resting on their male companion as they walk down the street as a sign of respect and close friendship. Nonverbal communication Arab culture is very high-context, meaning that communication involves much more than just a verbal exchange. Facial expression, tone of voice, and body language often convey a message more accurately than the spoken words. Note that certain body parts are considered unclean or a sign of immodesty: Left hand: If at all possible, foreign businesspeople should avoid the use of their left hand when eating, when handing something to someone, or when gesturing. Feet: The feet are seen as the least clean part of the body and therefore should not be directed at anyone. Showing the soles of one’s feet is considered offensive. When sitting, foreign businesspeople should avoid crossing their legs to keep both feet on the ground to avoid showing the bottom of their feet while facing someone. The taboo extends to the soles of shoes as well, so shoes should not be overturned when taken off to enter a building. It is considered extremely rude to put one's feet on a desk or other furniture. Shoulders/arms, stomach, legs: Saudis, especially women, do not reveal bare shoulders or arms, the stomach, calves, or thighs. Exposing these parts would send a message of 8|Page immodesty and would be offensive to Arabs. They expect foreigners to be respectful and adopt acceptably modest dress in public. Typical gestures Making a "tsk" noise with the tongue and tilting the head backward indicates a negative response or "no." It is not a sign of disrespect, as in some countries. You may see people rubbing a strand of "prayer beads" between their fingers. Although the beads look similar to a Catholic rosary, they do not have any religious significance. Gestures to avoid Pointing at a person or gesticulating wildly is considered rude and should be avoided, although Saudis commonly gesture while talking. Dining, Entertaining & Hosting Entertaining Welcoming visitors: Foreign visitors are considered guests, and as the Arabs typically pride themselves on being very hospitable, they will generally want to make their guests feel welcome and comfortable. Restaurants have table service, while hotel restaurants serve buffet-style meals. Invitation to a meal: Once the relationship has been established, Saudi businesspeople who work for large companies may take business guests (usually upper-level managers of similar or equal status) outside the city for a barbecue or luncheon. In Riyadh, a common destination is amasraa (farm resort); in Jeddah, people often go to a beach resort. The guests are usually picked up by a car and driver or by one of the associates, who accompanies them. A foreign visitor should not suggest paying for this meal, as that would be considered unacceptable. Etiquette Observe hierarchy: It is customary to take customers and suppliers out to lunch, but it is important to observe the relative hierarchy in these situations. A person of higher status can invite those of lower rank, but not vice versa. Lunches are usually with peers. Invitations: The person who extends an invitation to a meal or coffee is expected to pay the bill and not suggest splitting it. It is not polite to decline an invitation, so if your Saudi counterpart cannot accommodate you on the day you have suggested, he may propose getting together another day. Sometimes a specific date is not suggested: it is merely a way to keep the door open to further socializing. It should be taken as an indication he would like to spend time with you — just not on this particular occasion. Arrival time: Saudis generally do not expect guests to be on time. Arriving half an hour to forty-five minutes after the stated time is viewed as acceptable. It is important that foreign businesspeople keep this in mind when inviting Saudis, and give an earlier time than the actual time to meet. Meals: Foreign businesspeople will most likely be taken to a hotel dining room or restaurant for a local meal. When entering a room, the door is often held open for guests to go through before others. The meal is typically served in multiple courses with platters that are passed around the table so that 9|Page everyone can serve themselves. Guests are the first ones served. Typically, guests should be the first to start a meal; they do not need to wait for others to serve themselves before they begin eating. Many Muslim Arabs will avoid using their left hand when eating, as it is believed to follow the ways of Prophet Mohammed who ate only with his right hand. It is not necessary for foreigners to avoid using their left hand, as Arab counterparts will not expect this. Often people will get up from the table to wash their hands between courses, but this is more common in traditional eating establishments, where food may be eaten with the hands. Dessert will be served after dinner, with either tea or coffee following. Coffee: Coffee is usually served when you first arrive at a restaurant as well as after dessert. The coffee is not dark, as it is made from very light-roasted coffee beans and cardamom, and rather resembles green tea. It is served in a small cup, similar to an espresso. The person whose job is to pour the coffee generally stands in the room, waiting to refill the cup when you finish drinking. The coffee is drunk in a few sips, like espresso. Shaking one's cup means that one is finished; otherwise, the pourer will keep refilling the cup. *When offered tea or coffee, it would be impolite not to accept at least one cup. It is inappropriate to ask for sugar or milk to add to tea or coffee, and it will not be offered. Tipping Tipping is not expected, but is appreciated for good service. Waiters: Some restaurants include a 15% tip in the total. If it is included in the bill, it may go to the owner rather than the wait staff, so leaving a small separate cash tip for the waiter would be appreciated. Porters: 5-10 Riyal depending on amount of luggage Taxi drivers: No tip necessary Special considerations Religious directives: The Wahhabi sect of Islam (a branch of Sunni), representing the majority of Saudis, dictates abstention from activities that cause bodily harm, such as drinking and smoking. *Alcohol is illegal in Saudi Arabia as it is prohibited by Islamic law. Saudis may be offended when foreign nationals complain about the illegality of alcohol, or make comments such as "I wish I could have a beer" or "I could use a drink!" Smoking: Although alcohol is illegal, the attitude toward cigarettes is less strict and some people do smoke. Hookahs (communal water pipes) are found in some places as well. In general, when considering smoking, foreigners should follow their host's lead. Ramadan: During the month of Ramadan, Saudis will fast during the day, and even abstain from drinking and eating, and it would be rude to eat or drink in their company. Saudis also refrain from smoking, so it is best not to smoke in public during the daylight hours. Seating arrangements Women will sometimes be seated in the back of a room in a theater-style setup, and may sit in a separate room for meals. The segregation of men and women often makes it difficult for foreign women to do business in Saudi Arabia. However, some companies accept doing business with a 10 | P a g e foreign woman, especially if she is part of a team of men. It helps if she has a high position in her company. Some hotels and restaurants have family rooms where wives can sit with their husbands, but it is rare that a wife would accompany her husband for a business meal. Visiting someone's home Invitation to a home: Saudis do not mix family life and work, so it is uncommon for a business partner to be invited to a Saudi home. If there is a strong friendship and such a situation arises, guests will generally not meet or even see their host's wife or daughter(s). Shoes off & seating arrangements: Saudis generally take their shoes off inside the home, leaving them by the door. They may tell guests to keep their shoes on, but guests should offer to take them off. It is customary to be barefoot or to wear a pair of slippers inside the house. Seating arrangements in a home are less formal than in restaurants, and people may sit on low benches or cushions in more traditional homes. Hosting Saudi colleagues Extending an invitation: Saudis see foreign visitors as guests and will usually want to be the host for the first meal, but if the relationship or trip is extended, they will appreciate you reciprocating the offer. When inviting a Saudi, be sure to ask several times if they would like to join you, as they consider it polite to decline the offer at least once before accepting. Extending an invitation to a meal implies that you will pay the bill. Men and women: Are generally segregated at public functions and do not typically eat together in public. Some restaurants and hotels may have a family room where women can be served with their husbands. Alcohol: If entertaining Saudis outside their country, the venue should not be a bar where alcohol will be prevalent. Out of respect for Muslim counterparts, alcohol should not be served at a dinner meeting. Small talk & refreshments: Saudis like to have a chance to get to know their counterparts before doing business, so it is important to allow some time for small talk. When they arrive for a meeting, they will appreciate the offer of refreshments, such as coffee or tea. Business lunch It is customary to take customers and suppliers out to lunch, but remember: a person of higher status can invite those of lower rank, but not vice versa. Saudi associates may take foreign upper-level managers of similar or equal status by car and driver outside the city for a barbecue or luncheon. Do not suggest paying for this meal. The segregation of men and women often makes it difficult for foreign women to do business in Saudi Arabia. However, some companies accept doing business with a foreign woman, especially if she is part of a team of men. At a restaurant, coffee is usually served when you first arrive as well as after dessert; accept at least one cup. Do not add sugar or milk. Shake your cup to indicate that you have had enough; otherwise, they will keep refilling it. Alcohol is illegal in Saudi Arabia. Saudis may be offended if you complain about it with comments such as, "I wish I could have a beer" or "I could use a drink!" When entertaining Saudis outside their country, try not to invite them to meet in a bar where alcohol will be prevalent. Do not serve alcohol at a dinner meeting. 11 | P a g e Dining etiquette Guests should be the first to start. You do not need to wait for the others to serve themselves before you start eating. Do not use the left hand when eating, drinking, or when handing something to someone, as the left hand is considered unclean. At traditional eating establishments where food may be eaten with the hands, you can get up from the table to wash your hands in-between courses. Foreigners should refrain from eating, drinking, and smoking in front of their Saudi colleagues during the month of Ramadan. Entertaining Saudis Arabs will usually want to be the host for the first meal, but if the relationship or trip is extended, they will appreciate your reciprocating the offer. When inviting Saudis, ask several times if they would like to join you, as it is considered polite to decline the offer at least once before accepting. Extending an invitation to a meal implies that you will pay the bill; do not suggest splitting it. Men and women are generally segregated at public functions and do not typically eat together in public. Conversation Topics Appropriate topics Appropriate conversation topics include sports such as football (soccer) or basketball (but generally not U.S. American football or baseball), places where you have traveled (including how your trip was), and sights you plan to see while in Saudi Arabia. Additional appropriate topics for conversation are what life is like for you in your home country, and some customs that are typical in your country. Inappropriate topics Inappropriate conversation topics include speaking about a Saudi man's wife or daughter(s), although asking about his "family and children" is all right. Additional inappropriate topics include politics (Saudi nationals are interested in current world events, but do not talk often about local politics with foreigners), and Israel or your company's business with Israel. It is best that foreign businesspeople avoid discussions about religion, as the discussion of one's faith is considered personal. It is also inappropriate to ask someone why they follow their beliefs or ask any questions that may seem to challenge their faith. In addition, compliments should be given with care; if you admire something (for example, a piece of jewelry, or an object in someone's house), you may be presented with the object, and it would be rude to refuse such a gift. Attitudes toward Foreigners Businesspeople and tourists Saudis treat their visitors with respect as long as their guests appreciate the Arabic culture and are respectful of their customs. Saudis can be quite offended by foreigners who make comments that demean the Muslim religion or way of life. 12 | P a g e Race, nationality, ethnic relations North Americans and Europeans have a certain prestige in Saudi Arabia that does not necessarily extend to those of African or Asian descent. Darker-skinned people may feel slighted by the preferential treatment that white Americans and Europeans generally receive. Many foreign nationals, mostly from Southeast Asia (India, Bangladesh, and Indonesia, etc.), are brought in to fill employment needs. Some Saudi nationals feel that these foreign workers are a drain on the economy, as most send money back to their families and do not spend it in the country. There is some resentment regarding this subject. Yet these foreign workers are filling positions that Saudi nationals are not likely to want. Saudis often prefer to work in business or management positions and often believe that other people should fill the lower-level jobs. There is a very distinct hierarchy in Saudi Arabia, and foreigners other than Americans and Europeans, are often perceived as having a lower status. *Saudi Arabia tends to have stronger relationships with the following countries: Egypt Turkey Members of the Gulf Cooperation Council (GCC) o Kingdom of Bahrain o Kuwait o Sultanate of Oman o Qatar o United Arab Emirates *Saudi Arabia typically has more strained relationships with the following countries: Iran Syria Lebanon Iraq Yemen 13 | P a g e Attitudes toward Business & Money Status of business Most businesspeople are associated with wealth and are highly regarded by society. To some extent, the respect may depend on what kind of business it is and how successful it is. In general, successful businesses are regarded positively by most as the people running them are usually assumed to be well educated and quite cultured. Attitudes toward work There is a clear separation between business and family. Business is seen as something that does not leave the workplace, and although there may be some socializing outside the work environment, business is generally not discussed. Saudis do not, as a rule, believe that one should "live to work," but generally have a more relaxed attitude toward work. A good job is considered one that allows them to spend time with their family. Some people do work after hours, but it is a small percentage of the population. Being a manager is very prestigious, as titles are an important part of establishing credibility and status. A manager's schedule is relatively flexible, and managers can at times work short hours. Attitudes toward wealth Money is usually accompanied by respect within the Saudi culture. It means that one is well off and is able to provide quite well for one's family. It also means that someone has had to work hard to accumulate wealth, and that earns respect in general. Women in Business Gender Gap Index According to the Gender Gap Index compiled by the World Economic Forum in 2013, Saudi Arabia received a score of 0.5879 on a scale of 0 to 1 (where "1" defines a country with complete gender equality). The index measures the gender gap in four areas: economic participation, educational attainment, political empowerment, and health. Saudi Arabia ranked 127 th overall among the 136 countries listed. The gender gap is small in the areas of health and educational attainment; however, there is a large gap in the areas of economic participation and political empowerment. Women in the workplace Although teaching and medical occupations have traditionally been the most acceptable careers for women, the number of women working in telecommunications and banking as well as retail is growing. There are a number of women-only malls with stores owned and run by women, as well as women-only bank branches, which enable women to control their own money. Entrepreneurism: In addition, a growing number of women are becoming entrepreneurs, especially in Internet-based companies. The Internet has provided a way for women to conduct business without leaving the home or having to interact directly with men. Businesswomen sometimes ask their male guardians or representatives (mahram) to attend meetings in their place. Education: There are several all-women's colleges that accept women under conditions of strict segregation. Most of the newer universities have built both male and female sections side by side. Within some colleges, the girls and boys are taught by the same male professors. 14 | P a g e Restrictions on interaction: between men and women can make it difficult for foreign women to conduct business in Saudi Arabia. Most office staff in Saudi Arabia is male, as women are typically segregated from men in the workplace. In more conservative areas of the country, a foreign woman eating at a restaurant with a man who is not her husband or brother might arouse suspicion. In cities like Jeddah, many women work in multinational companies, but the eastern provinces tend to be more conservative. Greetings: Saudi men traditionally do not shake hands with women, and the physical contact that is common in conversations between men is not acceptable with a woman. Women should therefore wait to see if the other person offers a hand rather than initiating a handshake. If the Saudi has had experience in other cultures, he will be more likely to shake a woman's hand. Likewise, foreign businessmen should wait to see if a Saudi female counterpart offers her hand. Transportation: Women are not allowed to drive in Saudi Arabia and should arrange to have a driver or limousine transport them. Taxi services are quite good within the country. Many offices or institutions provide transportation for the women. Appearance: Foreign women should dress conservatively, taking particular care to cover their shoulders, arms, and legs. Long skirts and blouses with long sleeves and high necklines are the most appropriate. Bare shoulders in public are not acceptable. See also: Business Attire Hair coverings: Foreign women should generally make some effort to cover their hair as well, but the practice of enforcing this varies between regions. In Riyadh, for example, it is expected that foreign women cover their hair, but in Al-Khobar this is not the case. Out of respect for the local culture, however, it is still a good idea to make an effort to cover your hair, especially if you have light hair, which might attract more attention. Although the hair may be uncovered, when outside the office it is best to follow the norm and wear the abaya (black cloak like garment) in order to cover one's clothes and avoid drawing attention to oneself. *The rationale given for these rules of dress is that men and women are not to be viewed as sexual objects. Men are required to keep their guard up and women to protect themselves. Business Ethics Perception of corruption (index) Transparency International, in its 2013 Corruption Perceptions Index, has rated Saudi Arabia at 46 on a scale of 1 to 100 (with 100 being a country with no corruption), ranking 63 rd out of 177 countries listed. Attitudes toward corruption Bribery is illegal in Saudi Arabia and rarely occurs due to the strict laws and punishments that exist. Unfortunately, most people are unable to question the corruption within the country. This is mainly because it usually runs deep, or extends to the highest levels of government. Forms of corruption In the construction industry, companies that deal with subcontractors who hire unskilled labor should be mindful of the integrity of their business partners, as some of these labor contractors ignore labor laws or engage in questionable business practices. 15 | P a g e Having the right connections can help when navigating through bureaucratic processes — for example, to expedite shipments or get government signatures. Things to watch out for Elaborate gift giving: Many Saudis with whom foreign businesspeople deal are well off financially. Therefore, it is quite common to give elaborate gifts to business partners, but this is not generally viewed as bribery or unethical behavior. Nepotism: Personal connections and knowing the right people can be important factors in securing a job. Hiring practices may include employing a friend over others who may be equally qualified. While this practice sometimes results in inefficiency and poor quality output, it is seen by most people as helping out someone in need. According to local religious practice, people are often bound by their obligations to help their family members or friends in need. Work-Related Recreation & Benefits Company-sponsored recreation There are generally no company-organized events outside work, as there is a distinct separation between personal and work life. The company is not involved in its employees' personal lives, and it is therefore uncommon, for example, to have a company dinner. Company luncheons, however, may take place to celebrate a business deal or to honor a retiring manager. Typical perks Upper-level managers may expect a paid family vacation, a maid and a driver, and reimbursement for their children's educational expenses. See also: Motivating Employees 16 | P a g e Geography/Climate Capital Riyadh Location Located in the Middle East, Saudi Arabia shares borders with Jordan, Iraq, Kuwait, Qatar, the United Arab Emirates, Oman, Yemen, the Persian Gulf, and the Red Sea. Total Area 2,149,690 square kilometers Climate Saudi Arabia has a harsh, dry, desert climate with great temperature extremes. 17 | P a g e Communicating Effectively Communication Styles Diversity factors The older generation of Saudis may expect a certain level of respect and formality to be maintained when communicating with them, regardless of their rank or position in the company. High context Communication in Saudi Arabia is high context, meaning people rely on a wide variety of contextual clues when communicating — not just words. In addition, because of the Arab culture's emphasis on personal relationships and interdependence, it is assumed that there is a shared understanding among members of a group. Therefore, much information does not need to be verbalized because it is already known or understood. Indirect The focus on interpersonal relations means there may often be a stronger emphasis on what someone wants to hear rather than on directness and blunt honesty. This is the result of families living in the same communities for centuries, and the complex interrelationships among families. Traditionally, an effort is made not to offend another person even when conveying a difficult message. This communication style also carries over into working relationships. The tendency to talk around an issue without answering directly is especially true if an Arab would have to say "no" in response to a question. Rather than coming straight to the point, an Arab is more likely to be polite but vague. Since they do not like to give negative answers, it is possible that some Arabs will agree to a request that they do not intend to honor. On the other hand, they may answer in the affirmative but be deliberately vague about any specific commitment. However, other, nonverbal cues, such as a reluctance to commit to an actual time for a meeting, or whether the affirmative answer is being said with enthusiasm or with hesitancy, may indicate their true feelings. Personal Personal relationships: The Saudis emphasize personal relationships. Therefore, personal and social issues are of primary importance in communication between individuals. A Saudi will want to get to know someone and build trust with them before engaging in business discussions. This is not always limited to simple pleasantries, but is a sincere effort to be friendly and interested. This is also linked to their concept of time, in that the present is to be lived and the future will take care of itself. Polite: Another characteristic of the Saudis is their tendency to be very polite, which is rooted in the importance of hospitality in Arab culture. The Arab host will pay much attention to ensure that their guest is comfortable. Therefore, Saudis will demonstrate courtesy, which can also extend to comments filled with praise and gratitude toward their guest. In these situations, the foreigner may respond by showing sincere appreciation to the host's kindness. Expressive Arabs value the ability to speak eloquently. They are very expressive and place great importance on words. Observers have remarked that the manner in which a statement is made is sometimes more important than the content or words. Another observation a non-Arabic speaker may notice is the use 18 | P a g e of hand gestures, emotion or loud tones Arabs use when talking. This comes from the way the Arabic language is spoken, as many words must be said with a kind of passion in order to use the right pronunciation. Power of words: In addition, it is typical for an Arab to believe in the power of words to influence circumstances. This is why the Arabs often speak in euphemisms. Some people believe that direct speech about sickness or death, for example may actually create negative consequences. Perhaps this value for language derives from the beauty that Arabs find in the words of the Qur'an. It is said that the writing style of the Qur'an is more poetic than anything ever composed in Arabic. In fact, this is often given as proof of the book's divine origins, as the Prophet Muhammad was illiterate when he received the revelations. Basic Phrases: Thank you (Shokran) Good evening (Masa Al Khair) I'm sorry, I don't speak Arabic (Asef La istatea, An Atakalam Ana Alogah Al Arabiah) Good morning (Sabah Al Khair) Nice to meet you (Forsah Saeedah) How are you? (Kaif halak) Good bye (Ma Al Salamah) See you later (Narak Qareeban) Excuse me (Losamaht) Fine, thank you (Tayib Shokran) Good afternoon (Masa Al Khair) You're welcome (Afwan) Personal space In Arab culture, individuals of the same gender stand somewhat closer together than in some other cultures. Eye contact is important. Physical touch among the same gender is also common among Arabs, although this is less the case in Saudi Arabia and countries on the Arabian Peninsula than in other Arab nations. Even here, however, friends often greet each other with a kiss on the cheek. It is common to see two friends walking down the street, hand in hand. While this contact is common both among men and among women, it is restricted to members of the same sex. In many places, it is either illegal or highly unusual to see public displays of affection between men and women. 19 | P a g e Establishing Credibility Establishing credentials The tribal roots of Saudi culture manifest themselves in the modern day in the form of extensive networks, which are usually closed to outsiders. It will therefore be extremely difficult to conduct business efficiently without strong personal relationships. Moreover, without an initial introduction from a local business or government contact, a foreigner may not be taken seriously or have calls or e-mails returned. Making a good first impression Older managers are generally held in higher regard than their younger counterparts due to their level of experience. Since it would be rare in Saudi Arabia for a younger associate to hold an upper-level position, Saudis may assume that a younger foreign manager does not have high status. Formality in appearance is appreciated and will lend an air of credibility, as dressing well is a way to show respect for those with whom one is meeting. Attitudes toward local culture/people Awareness of cultural differences and being knowledgeable about the business style in Saudi Arabia will help foreign managers gain credibility as well. Being personable and demonstrating an interest in taking the time to establish friendships will indicate sincerity and a desire to have a productive business relationship. Obtaining Information Information sharing When asking a Saudi for sensitive information, it is important to have established a trusting relationship. A Saudi will not be likely to share such information until he feels the other person can be trusted with it. Once such trust exists, it is possible to be quite direct in asking questions when in a private, one-on-one situation. Long-term relationships: Saudis are generally interested in a long-term, mutually beneficial relationship. They will often want to go beyond business discussions and get to know potential business partners as a person in order to build trust. People who talk solely about business may give the impression that they are interested only in Saudi counterparts' money, and that they will leave once they have achieved their immediate financial goals. Building trust: Saudis will often go outside the workplace in order to build relationships. They may go to a coffee shop or nice restaurant to discuss business and get to know business associates in a comfortable environment. Persuading Others Preferred style Position power: Saudis tend to be less influenced by verbal persuasion than by the perceived authority of the person making a request. What a manager says is generally not questioned. 20 | P a g e *Foreign managers should realize that those at upper levels might not be used to receiving feedback or being questioned about their decisions. At a peer level, the key to persuading Saudi colleagues is to take the time to build good relationships with them, as they will be more likely to follow suggestions if they trust that the person who offers the suggestion has their best interests in mind. Presenting Ideas Preferred style When presenting ideas to Saudis, it is often effective to describe the big picture in a clear, concise manner in order to catch their interest before proceeding to an explanation of the finer points. It is best to keep the presentation brief and simple, showing thorough preparation and seriousness about following through on the idea. Presentations in Saudi Arabia are sometimes less data-driven than in many Western business cultures. However, in some technical or engineering companies, management appreciates presentations with specific supporting data. Handouts: Presentations are more enthusiastically received when they include good graphics. However, handouts, while appreciated, should be brief and contain a concise summary of the presentation. They should cover the main points of the presentation as a reminder, rather than more detailed information for the audience to read on their own. What to expect Level of interaction: A Saudi audience will most likely wait until the end of the presentation to ask questions unless the presenter makes a point of pausing and asking people if they understand. When the audience consists of lower-level employees, there will be little discussion, as subordinates typically do not question those in authority. They may make complimentary comments, but will not question or disagree openly with what has been presented. Language: Arabic is preferred, but English is often used in business. Presentations by foreign businesspeople can generally be given in English, as most Saudi managers have a high level of competence in English. However, it is still a good idea to use short sentences and avoid complex idioms. Managing Meetings Before the meeting Before attending a meeting with Saudis, it is helpful to try to memorize and practice pronouncing the names of Saudi counterparts, as foreigners often mispronounce Saudi names. In addition, it is important to use Saudi associates' titles, as titles confer status and are very important. Foreign businesspeople often mistake the Saudis' lack of prepared materials or paperwork as an indication that they are insufficiently prepared. Saudis generally do prepare ahead of time, but may not bring papers into a meeting, preferring to rely on their memory instead. First or external meetings Seating: The person with the most seniority sits at the head or center of the table, depending on how the table is shaped. The seat to this person's right is reserved for the next most important person. 21 | P a g e Protocol: When entering a meeting attended by many people, a Saudi will greet each person individually and shake hands. Those who are already seated should stand up before shaking hands. Same rank or higher: Upper-level Saudi executives usually do not attend meetings unless there are counterparts of the same rank, or higher, also in attendance. It is crucial that foreign companies send representatives at the appropriate level of status. Foreign counterparts should not expect to be able to deal with the Saudi decision makers if they, themselves, are not at the same rank or level. Typically, the most senior person directs the meeting. If the president is an older person, and more of a figurehead, he will be present. However, in this case, the vice president will direct the meeting. Welcome & indication of topics: The meeting will often begin with some small talk. The senior person typically welcomes everyone in attendance and mentions what will be discussed. However, this may be a general indication rather than a specific agenda. Often the topics covered will be decided during the meeting, and the scope can get quite wide. Discussion may stray toward subjects that are not business related. Interaction: Discussion is welcome, but lower-level employees are not likely to disagree with managers or older employees in the meeting. It is more appropriate to argue or disagree with a peer, but respect must be shown, and it is important that foreign businesspeople are careful not to appear rude. Interruptions: Note that Saudis often accept phone calls or other visitors during a meeting. These interruptions should not be seen as a sign of disrespect. Saudis conduct business with a more relaxed view of schedules than is the case in many other cultures, and therefore meetings may take longer than expected. These days, however, many larger organizations are adopting a closed-door meeting style that is only interrupted for very important issues. Schedules: Meetings should be scheduled so they do not conflict with prayer breaks (at daybreak, noon, mid-afternoon, sunset, and evening), but if they do, the host or other meeting attendees may have to leave the meeting for 15 or 20 minutes. After the meeting It is important to follow up the meetings with both e-mails and phone calls and hold people to their commitments. Persistence is key, as it is very common for Saudi counterparts, out of politeness, to make commitments they may not keep; or there may be differences in assumption about the timing of follow through. Internal meetings Internal meetings tend to be much less formal than external meetings in Saudi Arabia. They can sometimes become general talk sessions without addressing any of the agenda items. Even if an agenda is distributed before the meeting, attendees may not bring it to the meeting. Those who wish to impose more structure should bring copies of the agenda to hand out at the meeting and appoint a note-taker to record decisions and action steps. Diversity factors Meetings in government institutions and local companies may move more slowly and take longer than those in multinational companies. In addition, employees in multinational companies are generally more likely to follow through on commitments by the established deadline. In government entities and local companies, it may be necessary to follow up with more diligence in the form of persistent phone calls or face-to-face meetings. 22 | P a g e *Prayer times: If there are observant Muslims in your team, irrespective of where you live, avoid holding meetings during the Friday congregation prayer time (typically, between noon and 3:00 pm), as Muslims are obligated to attend this prayer every week. There are Muslim employees who have to make the hard choice between worship and attending an important meeting during that time. Virtual Communication Infrastructure Saudi Arabia's communication industry has been revolutionized. It is very common to see people carrying smartphones. Cell-phone coverage is relatively good depending on the provider. STC is the oldest cellular provider and delivers the best coverage. Available services: All providers have options for Internet usage, BlackBerry services, iPhone services, or anything else one may require. Internet access today is possible in many places outside homes and offices. Speeds vary according to service providers and the package being used. Wi-Fi is readily available in coffee shops as well as most shopping malls and even many restaurants. Most large corporations and businesses prefer to maintain high-speed Internet connections. Preferred modes of communication Saudi culture is a high-context culture, which means that people depend largely on nonverbal clues to augment their verbal communication. Communicating through technology makes it difficult or impossible to read this more subtle form of communication. As a result, face-to-face communication is generally necessary to develop good relationships with your Saudi counterparts. When it is not possible to meet face to face, the second best option is a call on the cell phone. If that also is not possible, then e-mail becomes the last option — but it is always best to follow up with a phone call. Telephones & conference calls If it is not possible to meet in person, a phone call is your next best option. A phone call is seen as more personal than a fax or e-mail and implies interest in the relationship. In addition, the tone of voice conveys more than the written word to many Saudis. Cell phones: ("mobiles") are popular. It has become very common for Saudis to give out their cellphone numbers to their business counterparts. While away from the office, most Saudis depend heavily on their cell phones to conduct business, along with sending and receiving e-mails. It is important that foreign businesspeople are careful about contacting Saudi colleagues outside of business hours, although some Saudis do not mind as long as it is not during prayer times, dinnertime, or after they have gone to sleep. Voicemail: is available in most large companies, but is not always utilized. Many Saudis would rather talk to a person and may be reluctant to leave a voicemail. It is more common to leave a message with a secretary or to send a text message than to leave a voicemail. E-mail & Internet Most large companies provide excellent Internet service for their employees. E-mail is heavily used within large companies among the staff and to stay connected with international counterparts on a daily basis. 23 | P a g e E-mails are usually monitored for size and viral attachments. It is also common in many offices to use Skype for videoconferencing purposes. Very good Internet connections are required for such services. Language Most verbal communication within companies is in Arabic. E-mails and messages in larger companies tend to be in English. Most communication with the government will be in Arabic. Calendar: Paperwork should include both the Western (Gregorian) and Arabic (lunar Hijri) calendar dates. It is advisable to check which system Saudi associates use. Even newspapers will have both dates printed on them. Conversation Topics Appropriate topics Appropriate conversation topics include sports such as football (soccer) or basketball (but generally not U.S. American football or baseball), places where you have traveled (including how your trip was), and sights you plan to see while in Saudi Arabia. Additional appropriate topics for conversation are what life is like for you in your home country, and some customs that are typical in your country. Inappropriate topics Inappropriate conversation topics include speaking about a Saudi man's wife or daughter(s), although asking about his "family and children" is all right. Additional inappropriate topics include politics (Saudi nationals are interested in current world events, but do not talk often about local politics with foreigners), and Israel or your company's business with Israel. It is best that foreign businesspeople avoid discussions about religion, as the discussion of one's faith is considered personal. It is also inappropriate to ask someone why they follow their beliefs or ask any questions that may seem to challenge their faith. In addition, compliments should be given with care; if you admire something (for example, a piece of jewelry, or an object in someone's house), you may be presented with the object, and it would be rude to refuse such a gift. 24 | P a g e Managing People Effective Leadership Styles Preferred leadership characteristics & styles Hierarchical relationship: Saudi employees are accustomed to a hierarchical relationship between managers and employees, and may be uncomfortable with the more egalitarian approach common in foreign companies with "flatter" organizational structures. The good Saudi leader is a father figure who makes the decisions and takes care of his subordinates. In return, his subordinates are loyal. Formal subordinates: Authority figures are to be obeyed, not questioned, and foreign managers who are used to a friendlier interaction with their subordinates may find themselves uncomfortable with the formal manner in which their Saudi employees relate to them. Balanced relationship: Managers who are skilled at building personal relationships with their colleagues in the work setting will be more effective as leaders, but there is little expectation for managers to socialize with employees outside the workplace. While a friendly approach is better than having a very reserved manner, a manager can also lose employees' respect by being overly informal or becoming too personal too quickly. Flexible: Managers should be flexible and willing to offer some latitude in deadlines and requests. For example, a Saudi employee may not respect an inflexible manager who refuses to change a deadline, especially if this inflexibility causes the Saudi to lose face if the deadline is not met. Dress and appearance: Can also be important, as dressing well in Saudi Arabia shows respect for those around you. Once a relationship is established, the dress code can be somewhat relaxed, but for initial encounters and meetings, it is best to maintain a somewhat formal standard. Potential pitfalls A foreign manager who demonstrates humility will generally be respected, as arrogance and bragging are thought to be very rude. Foreign businesspeople should avoid promoting themselves too much, or implying that they are more knowledgeable than others. Saudis often feel that they do not need to prove or show evidence of their knowledge or intelligence to others. Foreign managers who are accustomed to having others openly present their knowledge may mistakenly assume that their Saudi counterparts are not well informed. Recruiting & Hiring Recruiting environment The job market is very competitive in Saudi Arabia. In the past, foreigners were hired for many skilled jobs in the country. However, the Saudi government has been offering incentives for Saudi nationals to gain educational degrees abroad, and as these graduates return home, they are given first preference for skilled jobs under the government's Saudization policies to increase the number of nationals in the private sector. Saudi women are also eligible for educational incentives, and their numbers in the workforce are slowly increasing. 25 | P a g e Recruiting methods Recruiting firms and Internet job sites (such as mihnati.com) are commonly used. Many companies also advertise open positions on their web sites. The best candidates for a position may not always apply, so it is wise to utilize every channel available to find the right people. Newspapers: Can still be an effective way to recruit local employees. Foreign companies often get a good response to employment ads, so it is best to leave only a mailing address or fax number to avoid incurring a high volume of phone calls. It is common for companies to request information on degrees and grades earned, as well as a recommendation letter. Some university recruiting: Is done, but it is usually not as successful as advertising on the Internet or in the newspaper. Many Saudis go abroad for their college and upper-level studies, so foreign degrees are quite common. Attracting candidates Many young Saudis are attracted to a job that includes a good salary and benefits, as well as opportunities to gain more responsibility and move up within the company. Upper-level managers may expect a paid family vacation, a maid and a driver, and reimbursement for their children's educational expenses. What companies look for The first thing a company looks for is the candidate's educational and work background. Next is the nationality. Saudis are given first preference, followed by other Arabs, North Americans, or Europeans. South and East Asians are usually given the lowest priority, often due to visa issues. Language skills are very important, as some companies will not hire without fluency in Arabic while others look for strong English skills. After this, grades, references, and technical skills are also considered. Hiring practices The hiring process may vary from company to company, but may include an interview or series of interviews, tests, and possibly a training or trial period. Saudi labor laws are quite strict, and companies should be careful about terminating employees. Motivating Employees Financial incentives Minimum benefits provided by many companies in addition to a basic salary include health costs and a housing allowance. Bonuses, in addition to this basic package, are appreciated. Certificates & cash prizes: Some companies use special days such as company picnics to hand out certificates to all the employees who have done exceptionally well. These are sometimes accompanied by cash prizes. Incentives to move up: The higher an employee's level, the more access he/she has to certain incentives designed to motivate individuals to move up in the company. 26 | P a g e Nonfinancial incentives Promotion & time off: Although Saudis generally appreciate financial bonuses, they may be even more motivated by a promotion or an expansion of responsibilities — the type of recognition that confers status or authority. Being given time off for family vacations may also be a good incentive. Open & direct manager: Saudi employees are generally motivated by a manager who has a friendly, open, and direct manner but does not cross the line and become too personal too soon. Feedback: Saudis appreciate positive feedback, but some may be uncomfortable receiving the praise in person, especially in front of others. It may be best to give it in writing. When in doubt about appropriate ways to motivate employees, it is best to seek advice from someone who understands the Saudi work environment. Recognition: A certificate or an official paper signed by the president or an upper-level officer acknowledging an employee's achievements can be highly motivating. A team should also be recognized for its members' joint efforts. De-motivators Saudi employees value family time and may be demotivated if work demands begin interfering with private time, for example, having to work late into the night or on weekends. Diversity factors Many non-Saudis, for example, Arabs from other Middle Eastern countries, may prefer financial incentives, as they often send money to their families back home. Giving Feedback & Evaluating Employees Giving feedback Saudis tend to be sensitive to issues of "face," so individual feedback, both positive and negative, should be given in private, on a one-to-one basis. A formal certificate is one good way to show appreciation for employees' achievements, as is offering them positive feedback in a more indirect manner. Indirect approach: Because many Saudis may have a difficult time receiving direct feedback, an effective approach might be to call attention to a situation by commenting on it indirectly. While this approach might be too subtle in cultures that rely on explicit verbal communication, with Saudi employees it may be sufficient to indicate that a change needs to be made. The employee will then understand that an improvement is necessary, yet be able to save face. Being more direct: Sometimes it is important to explain things explicitly to ensure that the employee clearly understands what needs to be done. If more direct criticism seems necessary, it is a good idea to start the conversation on a friendly basis and soften the words with praise of the employee's strong points. Evaluating employees Communicate regularly: It is essential that foreign managers spend time talking with their employees on a regular basis to make certain that they really understand group and individual goals. Having a job description or goal written down on paper is often not sufficient, as Saudi employees are accustomed to having their manager clearly explain expectations to them. 27 | P a g e In addition, Saudis may hesitate to ask questions, so having frequent communication provides opportunities to reinforce goals and expectations. Evaluations: Should be done on a one-to-one basis. As in most cultures, it is a good idea to begin by accentuating the employee's positive achievements. However, foreign managers should be aware that their employee might be embarrassed by praise that seems to be too effusive. If improvements are necessary, Saudi managers might gently suggest changes, and start by being indirect in criticizing the employee's actions or behavior. It is best to offer a clear explanation to Saudi employees about what is expected and what the consequences will be if those goals are not met. Flexibility regarding time: Managers need to have some flexibility regarding deadlines, and should be sensitive to an employee's need to save face in difficult situations. For example, family always takes first priority; if an important family matter arises, a deadline or work commitment may take second priority. Performance should not necessarily be evaluated according to the same criteria used in one's home country. Punctuality: Is measured differently in Saudi Arabia than in many Western cultures. Arriving 10-15 minutes after a stated time is not considered late. This attitude toward time also applies to project deadlines. Foreign managers should be sure that Saudis are aware of required deadlines, but should also build some flexibility into the plan if at all possible. One exception is for technical or engineering companies, in which timeliness is deemed important and is a criterion by which employees are evaluated. Resolving Conflict Attitudes toward conflict Saudis tend to avoid open conflict and will often simply ignore a problematic situation. Employees are accustomed to following the directions of managers, and conflict rarely occurs between the two. Local norms Saudis tend to have an expressive communication style and may speak loudly to convey sincerity or passion. This may not indicate an actual conflict. On the other hand, if people are actually upset, it is possible that they may simply get up and leave the room, but they are not likely to say or do anything else that would indicate their anger publicly. If there is a conflict that Saudis feel they cannot ignore, they may bring it to the manager, asking him/her to decide how to handle it. They expect managers to be able to make these kinds of decisions, and they view the manager's decision as final. Foreign managers who are accustomed to employees working out their own problems may have to adapt their management style accordingly. Making Decisions Attitudes toward teamwork Teamwork is extremely important within most companies. Most Saudis tend to have an extremely friendly camaraderie among themselves that works to a company's benefit when it comes to team projects. 28 | P a g e Local norms Many Saudi companies build teamwork through external activities. Some companies hold special events throughout the year that their employees can look forward to, such as a sports day, dinner during Ramadan, company picnics, or a day at the beach. These events may or may not be held during work hours. The main purpose is to create team spirit. Activities are planned to allow members of different departments to interact and create a feeling of kinship. Building Relationships Local norms Friendships & trust: Building relationships with customers and suppliers is essential to doing business effectively in Saudi Arabia. Saudis are reluctant to do business with those they do not know personally, so it is important to allow time to build friendships and trust in order for your Saudi colleagues to be comfortable in a business relationship. When contacting a customer or supplier for the first time, calls or e-mails may not be returned unless a local contact or government official has provided an introduction. Relationships are therefore essential for entering into new business partnerships. Basis/scope of relationships Saudis typically cherish friendship and feel that trust is one of the most important aspects of the relationship. Once trust is established, the door to business interactions will be open and Saudis will be likely to make further introductions. Those introductions can be invaluable in a society where knowing the right person is essential to conducting business successfully. Honesty is very important; Saudis are not likely to give someone a second chance once they feel the person has been dishonest or untrustworthy. Breaking one's word can destroy one's reputation and reflect badly on the entire company. Business entertaining/gifts Business lunches: Many Saudis will want to go beyond business discussions and get to know potential partners in order to build trust. Once the relationship has been established, customers or suppliers are commonly taken out for business lunches. It is important to maintain the friendly relationship by continuing to express a genuine interest in your business associate. Separation between work & family: There is a clear separation between family and work life in Saudi Arabia. Families are not included in work activities, and wives and daughters will most likely not be introduced to guests visiting a Saudi home. Negotiating Negotiating style: local norms Social atmosphere: When negotiating with Saudis, it is important to spend time engaging in small talk before getting down to business. Tea or coffee is usually served to create a social atmosphere in which the two parties can get to know each other before the negotiation starts. 29 | P a g e Initial meetings: Several initial meetings may take place in which no business is discussed. Even so, these meetings are very important in the long term, as they provide time to build relationships. Saudis will not discuss business deals without feeling as if they know and trust the other party. Although these meetings can be quite long, it is important not to show impatience to get down to business. It is best to avoid any attempt to turn the conversation toward business matters. Foreign managers should show genuine interest in their Saudi counterparts, as this will facilitate the progress of the negotiation and win favor. Bargaining: Historically, Saudis were traders, and even in the present day, they are often shrewd negotiators who expect and enjoy give-and-take in almost every aspect of business. In the Saudi marketplace, buyers and sellers may start with very high or low offers and haggle back and forth before reaching an agreement. However, bargaining in a business negotiation is more straightforward, with opposing sides generally starting with more realistic initial offers. Fate: Like their counterparts throughout the Arab world, Saudis often use the expression, "In sha'Allah," which means, "If God wills." The attitude underlying this expression, which might be used in the context of a negotiation or meeting, may manifest itself in a reluctance to commit to a schedule or to do too much planning, as one's fate is essentially in God's hands, and people cannot ultimately control the future. Selling Local norms The importance of personal relationships in Saudi Arabia also extends to the vendor/customer relationship. A strong personal bond between companies and their distributors and vendors is essential for facilitating business sales. Gift giving: Is an important aspect of customer-vendor relations in Saudi Arabia. Although it is not customary to give gifts at first meetings, they are an important aspect of building relationships in subsequent encounters. Foreign products: Are available and perceived to have high quality; famous brands are highly appreciated by Saudi consumers, some of whom have sizable disposable incomes. Advertising: Must show sensitivity to Muslim sensibilities. Women in ads must be fully clothed or shown in silhouette and must not reveal their faces, hair, or other body parts. Men are also modestly displayed relative to ads in many other countries. e-business In a culture that has a lack of options for public activities, shopping has become a major form of entertainment enjoyed by the whole family. Partly for this reason, some Saudis have been slow to embrace e-commerce, although the number of people purchasing software, electronics, and travel reservations online is growing rapidly. Modernization of Saudi Post: A turning point was the modernization of Saudi Post in 2007-2008; previously, there was no address system and therefore no mail delivery to individual homes. Saudi Post undertook an ambitious project to create a high-tech system of address-mapping, sorting, delivery, and tracking which has opened up many more opportunities for the e-commerce industry. Women entrepreneurs & shoppers: In addition, e-commerce is becoming a popular outlet for women entrepreneurs, as they can set up business without leaving the home or dealing with men. The Internet has also allowed women to shop for items from all over the world without leaving their 30 | P a g e homes, and as a result, women now account for a large percentage of all Internet users in Saudi Arabia. Customer service Customer support: Customers have increasingly high expectations regarding prompt delivery of goods and availability of a qualified technical-support staff. As the market in Saudi Arabia is becoming increasingly competitive, it is important to offer excellent sales service and customer support in order to gain new clients and maintain relationships with existing ones. Service: The idea that the customer is always right exists in Saudi Arabia, but is not practiced widely in stores and restaurants. Service may be slower than some foreigners are used to, but asking repeatedly for help may not make things go faster. They do not like a pushy attitude and believe in the philosophy that "when it happens, it happens." There may be long lines for services such as banking. Dining, Entertaining & Hosting Entertaining Welcoming visitors: Foreign visitors are considered guests, and as the Arabs typically pride themselves on being very hospitable, they will generally want to make their guests feel welcome and comfortable. *Restaurants have table service, while hotel restaurants serve buffet-style meals. Invitation to a meal: Once the relationship has been established, Saudi businesspeople who work for large companies may take business guests (usually upper-level managers of similar or equal status) outside the city for a barbecue or luncheon. In Riyadh, a common destination is amasraa (farm resort); in Jeddah, people often go to a beach resort. The guests are usually picked up by a car and driver or by one of the associates, who accompanies them. A foreign visitor should not suggest paying for this meal, as that would be considered unacceptable. Etiquette Observe hierarchy: It is customary to take customers and suppliers out to lunch, but it is important to observe the relative hierarchy in these situations. A person of higher status can invite those of lower rank, but not vice versa. Lunches are usually with peers. Invitations: The person who extends an invitation to a meal or coffee is expected to pay the bill and not suggest splitting it. It is not polite to decline an invitation, so if your Saudi counterpart cannot accommodate you on the day you have suggested, he may propose getting together another day. Sometimes a specific date is not suggested: it is merely a way to keep the door open to further socializing. It should be taken as an indication he would like to spend time with you — just not on this particular occasion. Arrival time: Saudis generally do not expect guests to be on time. Arriving half an hour to forty-five minutes after the stated time is viewed as acceptable. It is important that foreign businesspeople keep this in mind when inviting Saudis, and give an earlier time than the actual time to meet. Meals: Foreign businesspeople will most likely be taken to a hotel dining room or restaurant for a local meal. When entering a room, the door is often held open for guests to go through before others. The meal is typically served in multiple courses with platters that are passed around the table so that 31 | P a g e everyone can serve themselves. Guests are the first ones served. Typically, guests should be the first to start a meal; they do not need to wait for others to serve themselves before they begin eating. Many Muslim Arabs will avoid using their left hand when eating, as it is believed to follow the ways of Prophet Mohammed who ate only with his right hand. It is not necessary for foreigners to avoid using their left hand, as Arab counterparts will not expect this. Often people will get up from the table to wash their hands between courses, but this is more common in traditional eating establishments, where food may be eaten with the hands. Dessert will be served after dinner, with either tea or coffee following. Coffee: Coffee is usually served when you first arrive at a restaurant as well as after dessert. The coffee is not dark, as it is made from very light-roasted coffee beans and cardamom, and rather resembles green tea. It is served in a small cup, similar to an espresso. The person whose job is to pour the coffee generally stands in the room, waiting to refill the cup when you finish drinking. The coffee is drunk in a few sips, like espresso. Shaking one's cup means that one is finished; otherwise, the pourer will keep refilling the cup. When offered tea or coffee, it would be impolite not to accept at least one cup. It is inappropriate to ask for sugar or milk to add to tea or coffee, and it will not be offered. Special considerations Religious directives: The Wahhabi sect of Islam (a branch of Sunni), representing the majority of Saudis, dictates abstention from activities that cause bodily harm, such as drinking and smoking. Alcohol:Is illegal in Saudi Arabia as it is prohibited by Islamic law. Saudis may be offended when foreign nationals complain about the illegality of alcohol, or make comments such as "I wish I could have a beer" or "I could use a drink!" *If entertaining Saudis outside their country, the venue should not be a bar where alcohol will be prevalent. Out of respect for Muslim counterparts, alcohol should not be served at a dinner meeting. Smoking: Although alcohol is illegal, the attitude toward cigarettes is less strict and some people do smoke. Hookahs (communal water pipes) are found in some places as well. In general, when considering smoking, foreigners should follow their host's lead. Ramadan: During the month of Ramadan, Saudis will fast during the day, and even abstain from drinking and eating, and it would be rude to eat or drink in their company. Saudis also refrain from smoking, so it is best not to smoke in public during the daylight hours. Seating arrangements Women will sometimes be seated in the back of a room in a theater-style setup, and may sit in a separate room for meals. The segregation of men and women often makes it difficult for foreign women to do business in Saudi Arabia. However, some companies accept doing business with a foreign woman, especially if she is part of a team of men. It helps if she has a high position in her company. Some hotels and restaurants have family rooms where wives can sit with their husbands, but it is rare that a wife would accompany her husband for a business meal. Visiting someone's home Invitation to a home: Saudis do not mix family life and work, so it is uncommon for a business partner to be invited to a Saudi home. If there is a strong friendship and such a situation arises, guests will generally not meet or even see their host's wife or daughter(s). 32 | P a g e Shoes off & seating arrangements: Saudis generally take their shoes off inside the home, leaving them by the door. They may tell guests to keep their shoes on, but guests should offer to take them off. It is customary to be barefoot or to wear a pair of slippers inside the house. Seating arrangements in a home are less formal than in restaurants, and people may sit on low benches or cushions in more traditional homes. Hosting Saudi colleagues Extending an invitation: Saudis see foreign visitors as guests and will usually want to be the host for the first meal, but if the relationship or trip is extended, they will appreciate your reciprocating the offer. When inviting a Saudi, be sure to ask several times if they would like to join you, as they consider it polite to decline the offer at least once before accepting. Extending an invitation to a meal implies that you will pay the bill. Men and women: Are generally segregated at public functions and do not typically eat together in public. Some restaurants and hotels may have a family room where women can be served with their husbands. Small talk & refreshments: Saudis like to have a chance to get to know their counterparts before doing business, so it is important to allow some time for small talk. When they arrive for a meeting, they will appreciate the offer of refreshments, such as coffee or tea. Business lunch It is customary to take customers and suppliers out to lunch, but remember: a person of higher status can invite those of lower rank, but not vice versa. Saudi associates may take foreign upper-level managers of similar or equal status by car and driver outside the city for a barbecue or luncheon. Do not suggest paying for this meal. The segregation of men and women often makes it difficult for foreign women to do business in Saudi Arabia. However, some companies accept doing business with a foreign woman, especially if she is part of a team of men. At a restaurant, coffee is usually served when you first arrive as well as after dessert; accept at least one cup. Do not add sugar or milk. Shake your cup to indicate that you have had enough; otherwise, they will keep refilling it. Alcohol is illegal in Saudi Arabia. Saudis may be offended if you complain about it with comments such as, "I wish I could have a beer" or "I could use a drink!" When entertaining Saudis outside their country, try not to invite them to meet in a bar where alcohol will be prevalent. Do not serve alcohol at a dinner meeting. Dining etiquette Guests should be the first to start. You do not need to wait for the others to serve themselves before you start eating. Do not use the left hand when eating, drinking, or when handing something to someone, as the left hand is considered unclean. At traditional eating establishments where food may be eaten with the hands, you can get up from the table to wash your hands in-between courses. Foreigners should refrain from eating, drinking, and smoking in front of their Saudi colleagues during the month of Ramadan. Entertaining Saudis Arabs will usually want to be the host for the first meal, but if the relationship or trip is extended, they will appreciate your reciprocating the offer. When inviting Saudis, ask several times if they would like to join you, as it is considered polite to decline the offer at least once before accepting. 33 | P a g e Extending an invitation to a meal implies that you will pay the bill; do not suggest splitting it. Men and women are generally segregated at public functions and do not typically eat together in public. Training & Coaching Attitudes toward training Saudi employees view relevant training as opportunities to improve their qualifications for a position. They are accustomed to receiving on-the-job training. Local norms On-the-job training: Is common in Saudi companies. Internships are also often used to evaluate an individual and decide whether to offer a position at the company. Other training: Is based on need or offered as an incentive. Employees may work hard to receive the opportunity to attend training held in another country. While much of the long-term training for Saudis is done outside the country, local training sessions are also common. These are sometimes one-day seminars conducted at a nice hotel. Sometimes external trainers are brought in for a weeklong training session, during which time employees may be away from their jobs. Learning styles Saudis tend to be comfortable with a teacher-student style of interaction in which the trainer is the expert. They may be less comfortable with role plays or highly interactive training unless they know each other well. There may also not be much discussion during the presentation, although they may ask questions at the end. Effective training approaches Most presentations by foreign businesspeople can be given in English, as most Saudi managers have a high level of competence in English, but it is still a good idea to use short sentences and avoid complex idioms. 34 | P a g e Questions and Answers Q: I will be managing a work group in Saudi Arabia. I am wondering if it is important to acknowledge or celebrate coworkers' birthdays, and if so, in what way? A: Generally birthdays are not celebrated as an office affair. Most people who do celebrate their birthdays will do so with their family and friends. There are also those who do not believe in celebrating their birthdays at all. Giving gifts within the office is not common especially if the office is all male. Sometimes within coed offices, mainly because of the female presence, a little more is done. Some workplaces may share a cake and sing happy birthday but this is not a common practice. Normally if someone does celebrate their birthday the polite thing to do is to just wish them a happy birthday and leave it at that. Otherwise it is highly unlikely for someone to become offended if their birthday goes unnoticed at their place of work. Q: I have just completed a project with Saudi clients. Why would they pass a woman in the hallway with their face directed to the ceiling? And not acknowledge the woman? A: Saudi men who behave in this way are conforming their behavior to their culture. In the Saudi culture it is inappropriate for a man or a group of men to look at or speak directly to a female who is not in the company of her male guardian. The issue is compounded by it occurring in a public place, and with a group of Saudi men, where peer pressure becomes an issue. If the woman is not wearing an abaya (black robe) and a niqab (face veil) then looking in another direction is even more understandable. My wife and I lived and worked in Saudi Arabia for over 10 years. We worked in a non-gender segregated workplace with other expatriate employees and Saudi males and females. We both observed similar behavior: Saudi men ignoring an individual female, expatriate or Saudi. There is a growing increase in Saudi women in the workplace, over 20%, although gender segregation is still common in many companies. To our surprise, we learned that in 2006, a government poll found that over 80% of Saudi women do not think women should drive or work with men. A Gallup poll found that most Saudi women do not think women should be allowed to hold political office; no other Muslim country in the poll had a similar response. Saudi women supportive of traditional gender roles argue that these changes would be opposed to Muslim values and an unwanted Western cultural influence, and that they already have a high degree of independence. Q: I am a manager about to begin my assignment in Saudi Arabia. I am 30 years old and I realize I'm young to be a manager. I am concerned about appearing credible to my clients and to the staff. If I want to inform people about my credentials (my previous assignments, my degrees, etc.) should I just tell them or hand them my business card? Should I wait for the person introducing me to mention this information? Would it be considered rude for me to talk about myself? A: It is not rude and will actually work to your advantage. People here are usually impressed by a person's educational and work accomplishments, and thus it is advisable when introducing yourself to mention both your background and credentials. Business cards usually contain a person's full name, job title, most recent educational achievement (e.g. M.A. Management, University of Illinois) and then the company name and contact details (e-mail, cell, office phone and office address). Q: In our global company, we have a lot of Saudi colleagues and leaders. As it goes, we have many meetings and calls (with the challenge of different time zones). The 35 | P a g e colleagues from the other 3 regions (Americas, Asia and Europe) have noticed a pattern of Saudi colleagues accepting meetings/calls, but then not to show up. My question is twofold: Could you explain how they view attending meetings/ calls, and in what respectful ways can the other 3 regions influence our Saudi colleagues and leaders to attend? A: Every situation is different, and there could be many different reasons why the Saudis at your organization have not been attending the meetings. However, here are some general considerations. Q: Could you explain how Saudis generally view attending meetings/calls? A: Saudi culture has a high-context communication style that relies on body language and eye contact to derive meaning. Therefore, face-to-face meetings tend to be much more effective than phone meetings. As well, during phone meetings, the Saudis may have concerns over who is listening and how they are being evaluated. Effective meetings should have a clear purpose, and clear roles and expectations for each participant. Saudis may be less committed to meetings that they feel are not well managed, that are scheduled at inconvenient times, are viewed as not adding value, or if they perceive no consequence for not attending. Finally, the Saudi employees may be more committed to attending if the next level of management is involved, and less committed to peer-to-peer exchanges. Q: What respectful ways can the other three regions influence our Saudi colleagues and leaders to attend? A: Consider ways of improving the management of the meetings: Make sure the meetings are not scheduled at very inconvenient times. Avoid non-workdays (Thursdays and Fridays), non-working hours (18:00 (6pm) to 7:00), and holidays (corporate and Muslim). Prepare an agenda and distribute it in advance. Include start and end times, list all attendees and their titles, and clarify the expectations of participants. You may consider personally telephoning the Saudi participants to invite their participation. During the meeting, make sure you start and end on time. Have a facilitator who "runs" the meeting and invites participation from the attendees. Assign a note taker who will distribute a post-meeting summary that documents meeting content, agreements, attendees and non-attendees. Find a tactful way to involve the next level of management: Copy higher ranking managers at each site (including Saudi Arabia) with the schedule and agenda. After the meeting, send the post-meeting summary that identifies both attendees and nonattendees to participants and their managers. If the situation continues, share the situation with a non-Saudi, higher ranking manager at one of the locations who has political clout in the project. Have this manager bring up the subject when they meet with counterparts without finger pointing. Another perspective: I find this issue to be somewhat common in Saudi Arabia. In the local culture, time is not maintained in many aspects of daily life, including meetings. For example, time is not maintained for shop opening and closing times, bus schedules, appointments, etc. This seems to be the norm and people adjust and accept it. As for phone meeting specifically, the culture emphasizes face-to-face meetings, and less importance is given to emails, phone calls, teleconferences, etc. To get things done, it is recommended that a person visit or meet the other party face to face. 36 | P a g e In addition to many of the guidelines previously mentioned, to make phone meetings more effective, my company adheres to the following general rules: Attendance is tracked strictly and reported to management. Too many absences or late attendance are report separately to the individual's manager and to the whole team. Individual target is 90% adherence to meetings. We have a policy that ensures key people's attendance: "Silence is approval". This means if someone had accepted the invitation but didn't attend or didn't participate actively in the meeting, then whatever is agreed on during the meeting applies on him/her (i.e. he/she cannot alter the agreement). Q: A group of female executives at a company asked, if they are having a telepresence conference call with male counterparts in Saudi Arabia (members of a local operating company, for example), would they be expected to cover their hair? They would not be in Saudi Arabia, but would be visible via the telepresence. A: If you are not physically present in Saudi Arabia you are not expected to cover your hair. In such a case, for a non-Muslim to cover her hair might be considered "over-doing" it. Over the past year the number of Saudi women in the local workforce has increased greatly. Depending on the sector they are working in many women are choosing to wear their head scarves more liberally and some may also choose to not cover their faces. This is becoming more acceptable. The society as a whole is evolving slowly. For example, women are still striving for their driving rights so the current mindset in the country is slowly changing. That said, conservative dress and attire is highly recommended. I would also suggest for long hair to be in a bun on the back of the head. 37 | P a g e