...What forces that shape modern Saudi culture? How similar to different police forces from those that shaped the culture of Western Nations? Because modern Saudi culture is rooted in the nomadic tribes that once roamed the Arabian Peninsula, some modern day Saudi Arabia culture can be traced to the Bedouins. Islam has also influenced modern Saudi culture. Stores and restaurants still do the daily prayer dictated by the Koran and the strict dress codes followed by women make it unlike any other Western culture because the values and the social norms are based on religious teachings that still continue. 2. What kind of misunderstanding or likely to arise between an American company and the Saudi enterprise, if neither of which has experience in dealing with the other? Different cultures have different ways of doing business. In Saudi Arabia, family and friendship plays a big role in career advancement whereas in the US individual success is more important. Woman make up a share of the workforce but in Saudi Arabia women have little freedom. It is important that both sides are sensitive to each other’s culture for effective business conduction. 3. If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be? The most important piece of advice would be to take time and learn about the Saudi culture and the Saudi way of doing business In order to avoid any misunderstandings...
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...and Business in Saudi Arabia 1. What forces that shape modern Saudi culture? How similar to different forces from those that shaped the culture of Western Nations? Historically Saudi Arabia is a conservative country where people desire to preserve religious values and ancient tradition of the region. Saudi culture can be traced back during 1744, the nomadic tribes who roamed around Arabian Peninsula. Even today the Saudi culture is based on Bedouins and also Islam influenced greatly to shape modern Saudi culture. The stores and restaurants still offer prayers daily as stated in the Koran and strict rules are followed especially women with fully covered dress code with little freedom unlike western culture where there is no discrimination between a man and women resulting in many women entrepreneurs and businesswomen. Even though majority of the western nations have similar religious and culture with Christianity spread across major countries, they do not allow this to have a negative impact on the business. Whereas in Saudi, the values based on religious teachings is still continued and are very strong. The Saudi carry out business with people after establishing trust through face to face meetings in relaxed fashion involving friends and family in the business and decision making. This is not seen in western culture as they are more success oriented valuing time and money. 2. What kind of misunderstanding or likely to arise between an American company and the Saudi enterprise...
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...Saudi Arabian Business Culture Abstract People have different cultural characteristics that affect the way they conduct business. This paper will educate the reader on how religion, relationships, communication, different concepts of time, culture and family values, building respectful and trusting relationships, business meeting etiquette, dress and appearance, and gender considerations all influence the way the Saudi Arabians negotiate business. I chose to write about this topic based on a personal experience I had with a male Saudi Arabian Officer that was my classmate during BOLC (Basic Officer Leadership Course). Due to my lack of cultural knowledge, I found myself struggling to communicate with him until I took the time out to learn about their cultural differences. Country Information Saudi Arabia, formally known as the Kingdom of Saudi Arabia, is a desert country, encompassing most of the Arabian Peninsula. The country is positioned between the Red Sea in the west and the Arabian Gulf in the east. It is bounded on the north by Jordan, Iraq and Kuwait, and on the south by the Yemeni Republics (north and south), and on the east by the United Arab Emirates, Bahrain, Qatar and Oman (“The Kingdom of Saudi Arabia in Brief,” n.d., para 1). The Kingdom of Saudi Arabia is approximately 1,960,582 sq. km and occupies an area about the size of the United States east of the Mississippi River. Riyadh is the capital city of Saudi Arabia. The name originated from the Arabic...
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...International Business Saudi Arabia’s Dynamic Culture Introduction The American way of business differs from many other countries across the world. Each company has their own set of tactics that they use to close big deals. Businesses from Saudi Arabia, on the other hand, tend to do things a bit differently. They take pride in getting to know the individuals from the other company before even disclosing any information to them. Meetings sometimes take place in less than formal locations such as coffee shops and cafes. The religious and social differences between the United States and Saudi Arabia make it challenging for Americans, unaware of the way of Saudi life, to do business there. They may experience cultural shock or even offend the people they are looking to do business with. Americans tend to be more deal focused, focused on the take at hand and looking to do whatever is necessary to complete the transaction. Saudis are more relationship focused, in which they would rather take their time and develop a relationship with the other businesspeople prior to making any business decisions. The clash of both business styles could be either very good or very bad, depending on how willing each side is to accommodate the other. 1. Assume you are a manager in a multinational company that needs to send a team of three to five people to Saudi Arabia for about two weeks to investigate the feasibility of selling you products there. What advice would you give them to help...
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...the Middle East area. In this point of view, late proofs have broadly confirm how despite the fact that Saudi Arabia is now considered as a growing economy which is trying to diversify its exports, mainly based on oil and natural gas, by framing and revising its legal and regulatory environment in order to foster entrepreneurship activities and the private sector interest. It leads to growing concern about the role of women in the economic environment, with legal and ethical consideration of the women’s role in the existing socio-cultural make-up of the country. The way in which countries like Saudi Arabia, have developed a domestic organized economy that is based on entrepreneurship is a hypothesis that has been widely tested and cited within the existing body of Literature. Although many academic experts believe that Middle East countries still retain a promising potential for growth (Shachmurove, 2004), major obstacles in terms of detrimental factors such as corruption, unclear regulations and reliance on oil have also recognized. Women are therefore believed to play a primary role in the entrepreneurial future of the region. In order to leverage on the untapped potential of economic growth of this country by utilizing and capitalizing on the potential contribution of the female entrepreneurs towards success of economic projects that are being carried out in Saudi Arabia, in compliance with the ethical dimensions that are deemed critical in the middle east region. Although...
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...LOCATION: Saudi Arabia is a monarchy in southwestern Asia, and occupies most of the Arabian Peninsula. Saudi Arabia is bordered on the north by Jordan, Iraq, and Kuwait; on the east by the Persian Gulf and Qatar; on the southeast by the United Arab Emirates and Oman on the south by the Republic of Yemen; and on the west by the Red Sea and the Gulf of Aqaba. The southeast and southern boundaries are not precisely defined. The Middle East, bordering Iraq 814 km, Jordan 744 km, Kuwait 222 km, Oman 676 km, Qatar 60 km, UAE 457 km, Yemen 1,458 km Capital: Riyadh Climate: harsh, dry desert with great temperature extremes Population: 25,795,938 including 5,576,076 non-nationals (July 2004 est.) Ethnic Make-up: Arab 90%, Afro-Asian 10% Religions: Muslim 100% Government: monarchy Language in Saudi Arabia Arabic is the official language of Saudi Arabia, but English is widely spoken. It is used in business and is a compulsory second language in schools. Among the non-Saudi population, many people speak Urdu, the official language of Pakistan, and other Asian languages such as Farsi and Turkish. Arabic is spoken by almost 200 million people in more than 22 countries. It is the language of the Qur'an, the Holy Book of Islam, and of Arab poetry and literature. While spoken Arabic varies from country to country, classical Arabic has remained unchanged for centuries. In Saudi, there are differences between the dialects spoken in urban areas and those spoken in rural areas. Saudi Society...
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...emphasis on female entrepreneurs from Saudi Arabia. The paper will employ a qualitative approach to try and understand how female entrepreneurs in Saudi Arabia have managed to start and manage their enterprises. The reasons that motivated women to take this approach in the business world will be interrogated, the challenges that face them and the means used to mitigate those problems will also be investigated. This thesis will look at the internal and external barriers that are faced by female entrepreneurs. The factors that form the conventional support network for women in business around the globe will be analyzed in a bid to show the to which they have been applied in Saudi Arabia. Using established research literature, the common problems faced by female entrepreneurs are well stated, this paper will go further to show how progress has been achieved and the factors that have facilitated a resurgence of entrepreneurship in this Middle Eastern country. Female Entrepreneurship In Saudi Arabia Female entrepreneurship in Saudi Arabia could the next frontier for the improvement of the Middle Eastern economy. A sector long overlooked due to the conservative nature of the Islamic society (Elamin & Omair, 2010), men have traditionally been looked upon to lead the way in business. However, recent development point to a paradigm shift as more Saudi women are making their mark in the business world. The female entrepreneurs need to be supported by the Saudi government to facilitate them...
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...3/4/2015 Global Fixed Income 1. Key Macro Indicators: | China | Saudi Arabia | Comments | Population | 1,300 million (growing at 0.47%) | 28 million (growing at 2.28%) | China has the edge | GDP | 9.10% | 6.77% | China has a stronger GDP | Trade as a Share of GDP | 55.84% | 92.24% | China is more of a self serving nation than Saudi Arabia | CPI | 5.41% | 5.01% | China has slightly higher inflation | Approximate Real GDP | 3.69% | 1.76% | China has higher real GDP | Exchange Rate (e0) | 6.37 Yuan per $ | 3.75 Riyals per $ | Saudi Arabia has a stronger currency. It is also pegged making it more predictable | Wood Product consumption (WPC) | 250 million CMB | 1million CBM | China has the edge on total consumption. Of the 250 million China consumes, China imports roughly 100 million CBM (150million produced locally). Chinas demand import is expected to go to 150million by 2015. | Consumption per Person (WPC/Population) | .0192 | .0357 | Saudi Arabia has stronger consumption per person | 2. Factors that should be monitored are: * Supply/Demand Factors * Monitor Consumption and new demand (ie monitor for developments in construction in current territory and China/Saudi Arabia) * Exchange and inflation risks * Inflation is higher in China slightly. Also, Saudi Arabia’s currency is pegged; China’s is not * Inflation in Lebanon is roughly 5.2% * Tax rates and changes * Taxes are a major concern when...
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...Medical Equipment Inc. In Saudi Arabia Medical Equipment Inc. hired Ankur Grover as a US sales account manager. When he returned to his office after the meeting, he was disappointed from the rejection of his proposal. Although, he worked very hard to secure the sale, but Saxman told Grover that Sulaiman Al. Humaidi, the purchasing director has given the order to Hamad Najjar from Wilson’s Company; the main competitor of Medical Equipment Inc. Grover was sure that the product of his company was superior from Wilson’s and he wondered that how he could secure the sale. The case study aims to answer the questions that did Grover understand the culture of Saudi Arabia and what were the possible options through which he could retain the sale. Question 1 Saudi Arabia was founded in1932 and the local business culture of Saudi Arabia was different from other foreign cultures. Grover did not understand the local culture. He thought that he understood the culture and had a good understanding of culture as he was raised in Saudi Arabia, but in reality he grew in an expatriate environment and had a limited contact with the people of Saudi Arabia. The reason that he did not understand the culture was he studied in an Indian school and then completed his degree from USA. He did his internship in France and USA. Although, he got the work experience, but the business concepts of Saudi Arabia was different from the foreign business (Anna, Schuster, Norberg & Helander, 2013). When he...
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...2- Assess Business Environment a. Language, attitudes, religious beliefs, traditions, work ethic ( culture) The full name of Saudi Arabia is the Kingdom of Saudi Arabia. Arabic is the official language. In the 7th century, the successor of the Mohammed who was the founder of Islam established Arab empire. The 8th century is a heyday for Saudi Arabia, and its territory crosses Europe, Asia and Africa. However, in the 16th century, Arab empire was ruled by the Ottoman Empire. In the 19th century, The Great Britain invaded into Arab, it was divided into two parts, Hejaz and Nejd. In 1924, the chief of Hejaz in Saudi Arabia merged Nejd and then gradually unified the Arabian Peninsula. Finally, in September 1932, he declared the establishment of Saudi Arabia kingdom. Saudi Arabia is the birthplace of Islam. Islam has become the world’s second large religion. The founder Muhammad established Islam approximately A.D 600 in Mecca; the sacred city of Islam is located in Saudi Arabia. Islam prospers in northwestern Africa, the Middle East, Central Asia, Pakistan, and some Southeast cities. Religion strongly affects consumption behavior of Arabian. For example, Muslim consumers are not allowed to consume alcohol and pork, besides that, the nation is governed under the Law of Islamic. Muslim pray five times a day, the local people usually go to the mosque to do religious service. Women must wear black robes in that day. Some of the traditions and customs in Saudi Arabia are...
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...The Impact of multinational companies A case study of the energy industry in Saudi Arabia Abstract Contents 1. Introduction 4 1.1. Rationale of the Research 6 1.2. Aims & Objectives of the Research 7 1.3. Key Research Questions 7 2. Literature Review 9 3. Research Methodology 13 4. Key Findings & Discussion 13 5. Conclusion 16 6. References 16 7. Appendices 16 1. Introduction In this era of globalization, there has been a fundamental change in the way international business is being done. Due to the ease of communication and advances in the sophisticated communication systems more and more companies are becoming global and expanding their operations and creating production facilities away from their home countries. This trend has given rise to today’s Multinational Corporations (MNCs) whose role in the international scene is increasing rapidly. With increased international development and cooperation, the MNCs have been able to create such a network that their budgets, organizational structure and influence on the world trade stage rivals many nations [ (UN Conference Proceedings, 2006) ]. With their immense economic power and strong political connections and the fact that globalization is seen as a “Business driving phenomenon”, MNCs are in a strong position to influence the economies of the countries...
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...Doing Business in Saudi Arabia 1) Prepare a short description of the most striking cultural characteristics that may affect business interaction in this country. Doing business in Saudi Arabia requires significant research if I expect to be successful. There are many cultural differences that must be taken in consideration prior to and during business interactions. The Saudi Arabian culture, its shared values and norms, is distinctly different from our western culture. Saudi Arabian social structure emphasizes a group rather than individualism. Saudi’s are more likely to identify themselves as a part of something (e.g., “I am from Exxon Mobil”) rather than identifying their individual role (e.g., “I am an engineer”). It will also be important to understand the social stratification within Saudi Arabia. Having a working knowledge of the significance of the tribal affiliations as well as the varied groups of which someone can be a part will help me to understand which individuals I need to approach and build relationships with in order to be successful in the region. It will also be incredibly important for me to understand the role of religion, specifically Islam, in the region and how it affects work ethic, business decisions, and simple logistics throughout the day. As Americans, we are focused on our work and we allow very little to get in the way of our accomplishments. Saudi’s are very different. Work is secondary to many things, most notably, religion...
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...Brazil vs. Saudi Arabia: Business Etiquette Both Brazil and Saudi Arabia are very different when it comes to business etiquette. Before an individual expects to conduct business in either of the countries, it is important to have a good understanding of the culture and customs within each country. Once an individual acquires this knowledge and is aware of the country’s culture and customs, it becomes easier to do business. One of the most significant factors to be aware of before conducting business in either country is to be mindful of certain time periods. For example, trying to do business in Brazil during Carnival week is certainly not wise. Carnaval is a very important tradition in Brazil; it is very time-consuming and trying to discuss business matters during this time would be extremely inconvenient for most individuals. The culture in Brazil is very friendly and people-oriented. Portuguese is the official language of Brazil. It would be beneficial to have some understanding of the language before traveling to this country. Brazil is a very diverse country especially because its people are of different races and ethnicities. The culture of Brazil emphasizes how family is of utmost importance to its people. Visiting family often and spending time with them is very common to the culture. Understanding Brazil’s culture and the influence it has on its people is helpful when traveling to the country in pursuit of doing business. The more an individual acknowledges these aspects...
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...ECONOMICS II THE ACCESSION OF SAUDI ARABIA TO THE WTO ANALYSING THE FUTURE CHALLENGES SUBMITTED BY: AKANKSHA PRAKASH I.D.NO.: 1785 IIND YEAR B.A.LL.B. {HONS.} TABLE OF CONTENTS RESEARCH METHODOLOGY___________________________________________________________2 INTRODUCTION_________________________________________________________________________3 THE ACCESSION OF SAUDI ARABIA TO THE WTO: AN ANALYSIS OF THE FUTURE CHALLENGES____________________________________________________________________________4 • Objectives________________________________________________________________________4 Diversification of the economy______________________________________4 Development of modern infrastructure________________________________4 Access to Foreign Direct Investment (FDI) and modern technologies________4 Enhancement of purchase power of the population_______________________4 Employment Generation___________________________________________5 Maximization of competitive advantage in petrochemicals________________5 Open Access to international Market__________________________________5 Open Access to international Market__________________________________6 Integration of Saudi Arabia’s economy with the global economy____________6 • Reforms__________________________________________________________________________6 Foreign Investment_______________________________________________7 Trade in Goods___________________________________________________8 ...
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...International Business Report between Saudi Arabia & U.S.A Culture in International Business Culture Culture refers to the cumulative deposit of knowledge, experiences, beliefs, values, attitudes, meanings, hierarchies, religions, nation of time, roles, spatial relations, concepts of the universe, material objects and possessions acquired by a group of people in the course of generations through individual and group striving. Culture is a fuzzy set of basic assumption and value, orientations to life, beliefs, policies, procedures and behavior and his/her interpretations of the ‘meaning’ of other people’s behavior. (Spencer- Oatey 2008:3) ‘Culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values; culture systems may. On the other hand, be considered as products of action, on the other. As conditional elements of future action.’ (Kroeber and Kluckhohn 1952: 181; cited by Adler 1997: 14) Culture differences in International Business Doing business with others countries, the difference culture is a point that a business man should aware of. A key to being successful in business internationally is to understand the role of culture in international business. Whatever sector...
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