The document provides information about culture and business practices in Saudi Arabia. It notes that Saudi Arabia is located in the Middle East and that Islam is the dominant religion, governing all aspects of life. It describes Saudi culture as highly collective, with strong family and tribal ties. Business follows a hierarchical structure built around family networks. Meetings require formal appointments in advance and maintaining conservative dress and behavior is important, especially for women. Decision making is centralized and uncertainty avoidance is high.

1. CULTURE AND
INTERNATIONAL BUSNESS
THE KINGDOM OF SAUDI ARABIA

2. GROUP MEMBERS
Aditi Jalan
Bhavika Kalaani
Megha Bafna
Yashwardhan Modi

3. THE KINGDOM SAUDI
ARABIA
 Located in the middle-east, bounded by Iraq, Jordan, Kuwait,
Oman, Qatar, UAE and Yemen
 Important cities are Riyadh, Mecca and Medina
 The ethnic make-up consists of 90% Arabs and 10% Afro-Asians.
 Arabic is the official language. English is widely spoken.

4. CULTURE OF SAUDI ARABIA
 Islam is practiced by all Saudis and governs their personal,
political, economical and legal lives.
 Family and tribe are the basis of the social structure.
 Saudis are cognizant of their heritage, their clan and their
extended families.
 Nepotism is considered a good thing.

5. COUNTRY CLUSTER.

6. NON-ANGLO
• Power Distance (PDI) • Large Power Distance
ANGLO
(40) (PDI) (80)
• Individualism (IDV) • Individualism
(91) (IDV)(38)
• Uncertainty Avoidance • Uncertainty Avoidance
(UAI) (46) (UAI) (68)
• Masculinity (MAS) • Masculinity index
(62) (MAS) (52)
• Long Term • Long term oriented to
Orientation (LTO) (29) “group”

7. ETIQUETTE AND CUSTOMS
 Men shake hands. Women generally hug and kiss close friends
but men and women would not greet each other in public
 If you are invited to a Saudi‟s house bring something small as
a „Thank you‟ since gifts are not accepted.
 Entertainment will generally be same-gender only. If both sex
are included, they will be in separate rooms.

8. C U LT U R A L L E A R N I N G
P RO F I L E
COLLECTIVIST LARGE HIGH ACHIEVEMENT
• 62 out of 100 POWER UNCERTAINTY ORIENTED
DISTANCE AVOIDANCE (MAS)
• Tribe and family
oriented 80 out of 100 • 68 out of 100 • 52 Out of 100
• Students expect to • Structured learning • Failure in school is
Teacher-centered damaging to one‟s
learn how to „do‟ education environment self image and family
• High context preferred standing
communication Subordinates expect • Low ambiguity • Students compete
managers to outline tolerance with each other in
• Positive learning path • Teachers‟ expected class
associations with
traditions Quality of learning to have all answers
attributed to quality
of manager

9. BUSINESS STRUCTURE
 The business culture in Saudi Arabia is developed around a family unit,
with all key employees coming from the extended family.
 It is a non-egalitarian structure.
 Business is developed along strongly hierarchical lines, with majority
of power being held at top by senior or older family members.
 This shows that the power distance (80) is high and they have a
collective (62) approach.

10. MANAGEMENT STYLE
 Having a strongly hierarchical structure, managers tend to be very
instructional in their approach
 Subordinates view it as the boss‟ role to take decisions and convey
it down the chain of implementation
 They believe that leaders lead and followers follow

11. FORMAL MEETINGS
 Prior appointments are necessary several weeks in advance
 Arriving on time for the meeting, although it is an accepted custom to
keep foreigners waiting (synchronic/polychromic orientation)
 Meetings are generally not private until after a relationship of trust has
been developed
 Business meeting start after prolonged inquires about family, health
etc. “Never inquire about Saudi‟s wife”

12. TIME ORIENTATION
 The Arab‟s have a Polychromic cultural approach towards time.
 Work days: Saturday – Wednesdays. No work during Islamic prayer
times: observed five times a day.
 Past-orientated because it values its traditions, history and cultural
roots
 This is especially because of the strong sub-cultural association
 In Islam, man does not determine his future only God does

13. COMMUNICATION STYLES
 Saudi Arabia is considered a very high context culture.
 Particular emphasis is placed on tone of voice, the use of silence,
facial cues and body language.
 For instance, silence is often used for contemplation and you
should not feel obliged to speak during these periods.
 Maintaining private and public proximity is important.

14. WOMEN AND BUSINESS
 Women in Saudi Arabia make up between 5% to 15% of the work
force.
 Saudi sharia (Islamic law) allows women to work provided it does
not lead to her neglecting essential duties of home making.
 Any woman visiting on business needs to be very conservative in
both their dress code and behavior.

15. BUSINESS DRESS CODE
 Visitors to Saudi are expected to dress in a very conservative
manner.
 Men should wear formal clothing whereas women should wear
business suits (not trousers), where there is no exposure of skin at all.
 Expatriate should not be wearing traditional Saudi costume as it
may look bizarre or offend the local Saudis.

16. CULTURAL DIFFERENCE.

17. NEGOTIATION
 Saudi‟s are tough negotiators.
 The society being extremely bureaucratic, most decisions require
several layers of approval.
 There is a tendency to give bad news and give effusive acceptances,
which may not mean „perhaps‟.
 Decisions are made by the highest ranking person.

18. MARKET STRATEGY

19. CONCLUSION
 Saudi Arabia‟s high uncertainty avoidance will probably create high barriers of
entry which will reduce their international trade.
 Discouragement of innovation and creativity due to the unwillingness to take
risk.
 High power distance affects the laws and regulations due to the unlimited power
and authority by the government .
 Saudi Arabia is an extremely conservative country and therefore all expatriates
are expected to act accordingly.
 NOTE : VIDEO!

20. REFERENCES
 http://goliath.ecnext.com/coms2//gi_0199-6814349/Cultural-barriers-to-improved-
organizational.html (Accessed on: 2nd December‟11)
 http://internationalbusiness.wikia.com/wiki/Expatriates-living-in-Saudi-Arabia
(Accessed on:1nd December‟11)
 http://www.cybrolink.com/besite/saudi-arabia.htm (Accessed on:4nd December‟11)
 http://www.worldbusinessculture.com/Saudi-Arabian-Business-Negotiation.html
(Accessed on:3nd December‟11)
 http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-country-
profile.html (Accessed on:3nd December‟11)

21. THANK YOU