Saudi Arabia is not the easiest place in the world for traditions have been just as strong as Islamic values in
Western enterprises to do business. On the one hand, shaping Saudi culture. Less than a hundred years ago.
the oilrich kingdom offers many opportunities for the Arabian Peninsula was populated by nomadic
enterprising businesses. Western construction Bedouin tribes. Values that were important to those
companies have long played a role in building proud nomads, and enabled them to survive in their
infrastructure in the kingdom Western brands from harsh desert landscape, are still found in modern
Coca-Cola, Nike, and McDonald's to Body Shop, Next, Saudi society. They include loyalty, status, an
and Benetton have a significant presence. Western emphasis on interpersonal relationships, the idea of
aerospace companies such as Boeing and Lockheed approximate rather than precise time, and an aversion
have sold a significant number of aircraft to Saudi to any behavior that might seem menial or servile
Arabia over the years. The Saudi market is one of the (including manual labor),
larger in the Middle East, with a growing population Reflecting Bedouin traditions, Saudis will often conduct
of 22 million and purchasing power parity per capita business only after trust has been well established—a
of $12,845 in 2003. Since 2000, the government has process that might require (by Western standards) a large
signaled that it IS more open to foreign investment in number of face-to-face meetings. Saudis may resent being
rushed into a business decision, preferring to let
certain sectors of the economy, although oil and gas discussions proceed in a more relaxed fashion—
extraction is still reserved for state-owned something that Westerners with their attachment to
enterprises. precise rather than approximate time might find taxing.
On the other hand, Saudi Arabia is a historically Business meetings may be long because many Saudis
conservative country where a large segment of the maintain an "open office" and will interrupt a meeting to
population desires to preserve the religious values conduct other business, which can be traced back to the
and ancient traditions of the region, and this can Bedouin tradition where all tribal members have a right to
visit and petition their leaders wlthout an appointment,
spill over into the business sector The culture of the Given the cultural importance attached to status, Saudi
country has been shaped by Islam and the Bedouin executives will not react well if a foreign company sends a
tradition. The source of law in Saudi Arabia is junior executive to transact business.
Islamic law (the Shari'ah). and religious edicts Loyalty to family and friends is a powerful force,
derived from this influence on everyday life. For and job security and advancement may be based on
example, stores and restaurants close at the five family and friendship ties, rather than, or in addition
daily prayer times, and many restaurants, including to, demonstrated technical or managerial
Western ones such as McDonald's, have separate competence. Westerners might construe this
dining areas for men and women. Women in Saudi negatively as nepotism, but it reflects a nomadic
Arabia are not allowed to drive a car, sail a boat, or fly culture where trust in family and tribe was placed
a plane, or to appear outdoors with hair, wrists, or above all else. Saudi executives will also consult with
ankles exposed—something that Western companies family and friends before making a business decision,
need to keep in mind when doing business in the and they may place more weight on their opinions
country or with Saudis elsewhere. than that of experts whom they do not know as well
Saudi adherence to Islamic values has also given The Bedouin aversion to menial work has produced a
rise to anti-American sentiment, which has been chronic labor problem in the kingdom, and foreign
increasing since the American-led invasion of another companies will quickly discover that it is difficult to find
Muslim nation. Iraq. Cultural solidarity has expressed Saudi nationals who will undertake manual labor or basic
secvice work. Currently, some 6 million foreign nationals
itself in consumer boycotts of American products,
reside in Saudi Arabia. These expatriates, who are primarily
More disturbing than consumer boycotts has been a from other Muslim nations, undertake many of the menial
rise in terrorist attacks against Western expatriates in occupations that Saudis disdain. Although oil revenues have
Saudi Arabia, significantly increas• -ing the perceived made this social stratification possible, the Saudi
risks of doing business in the kingdom. Bedouin government sees it as a potential long-term problem—
Western enterprises to do business. On the one hand, shaping Saudi culture. Less than a hundred years ago.
the oilrich kingdom offers many opportunities for the Arabian Peninsula was populated by nomadic
enterprising businesses. Western construction Bedouin tribes. Values that were important to those
companies have long played a role in building proud nomads, and enabled them to survive in their
infrastructure in the kingdom Western brands from harsh desert landscape, are still found in modern
Coca-Cola, Nike, and McDonald's to Body Shop, Next, Saudi society. They include loyalty, status, an
and Benetton have a significant presence. Western emphasis on interpersonal relationships, the idea of
aerospace companies such as Boeing and Lockheed approximate rather than precise time, and an aversion
have sold a significant number of aircraft to Saudi to any behavior that might seem menial or servile
Arabia over the years. The Saudi market is one of the (including manual labor),
larger in the Middle East, with a growing population Reflecting Bedouin traditions, Saudis will often conduct
of 22 million and purchasing power parity per capita business only after trust has been well established—a
of $12,845 in 2003. Since 2000, the government has process that might require (by Western standards) a large
signaled that it IS more open to foreign investment in number of face-to-face meetings. Saudis may resent being
rushed into a business decision, preferring to let
certain sectors of the economy, although oil and gas discussions proceed in a more relaxed fashion—
extraction is still reserved for state-owned something that Westerners with their attachment to
enterprises. precise rather than approximate time might find taxing.
On the other hand, Saudi Arabia is a historically Business meetings may be long because many Saudis
conservative country where a large segment of the maintain an "open office" and will interrupt a meeting to
population desires to preserve the religious values conduct other business, which can be traced back to the
and ancient traditions of the region, and this can Bedouin tradition where all tribal members have a right to
visit and petition their leaders wlthout an appointment,
spill over into the business sector The culture of the Given the cultural importance attached to status, Saudi
country has been shaped by Islam and the Bedouin executives will not react well if a foreign company sends a
tradition. The source of law in Saudi Arabia is junior executive to transact business.
Islamic law (the Shari'ah). and religious edicts Loyalty to family and friends is a powerful force,
derived from this influence on everyday life. For and job security and advancement may be based on
example, stores and restaurants close at the five family and friendship ties, rather than, or in addition
daily prayer times, and many restaurants, including to, demonstrated technical or managerial
Western ones such as McDonald's, have separate competence. Westerners might construe this
dining areas for men and women. Women in Saudi negatively as nepotism, but it reflects a nomadic
Arabia are not allowed to drive a car, sail a boat, or fly culture where trust in family and tribe was placed
a plane, or to appear outdoors with hair, wrists, or above all else. Saudi executives will also consult with
ankles exposed—something that Western companies family and friends before making a business decision,
need to keep in mind when doing business in the and they may place more weight on their opinions
country or with Saudis elsewhere. than that of experts whom they do not know as well
Saudi adherence to Islamic values has also given The Bedouin aversion to menial work has produced a
rise to anti-American sentiment, which has been chronic labor problem in the kingdom, and foreign
increasing since the American-led invasion of another companies will quickly discover that it is difficult to find
Muslim nation. Iraq. Cultural solidarity has expressed Saudi nationals who will undertake manual labor or basic
secvice work. Currently, some 6 million foreign nationals
itself in consumer boycotts of American products,
reside in Saudi Arabia. These expatriates, who are primarily
More disturbing than consumer boycotts has been a from other Muslim nations, undertake many of the menial
rise in terrorist attacks against Western expatriates in occupations that Saudis disdain. Although oil revenues have
Saudi Arabia, significantly increas• -ing the perceived made this social stratification possible, the Saudi
risks of doing business in the kingdom. Bedouin government sees it as a potential long-term problem—
