Doing Business in Saudi Arabia

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Business Structure

Saudi Arabia’s business structure is centered around family. The key employees are usually extended family. “Nepotism is a way of life and the idea that positions would not be given to family members is incomprehensible. Family-based structure is when a company is developed along strong hierarchical lines with the majority of power being held at the top by the senior, usually the older family members” (World Business Culture, 2013). Expats should spend a considerable amount of time trying to build relationships with colleagues. Although, they may not know who is connected, they should treat every contact as an important lead. “A seemingly lowly employee may prove to be a relative of a senior figure and therefore of greater potential help than some other apparently more important contact” (World Business Culture, 2013). It will help to have an understanding of the individual roles and existing hierarchy of a Saudi Arabian business before entering the company. Managers or senior executives make all decisions and then implement all plans to lower level employees. Subordinates do not question the decisions that have been reached; they just wait to be told what to do.

Saudi Arabia has a male-dominated society. Although some women work, they play traditional roles and rarely attain positions of similar income and authority as men” (Katz, 2010). Western expatriate women will find many restrictions in the country and showing confidence and/or assertiveness can be counter-productive. It is recommended that expat women do not appear too bold or aggressive, which may create major issues. These American traits should be avoided in all situations. Women should act professional and conservative at all times (e.g. busin...

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References

Excutive Planet. (2006). Retrieved from http://www.executiveplanet.com/index.php?title=Saudi_Arabia:_Appointment_Alert%21

Saudi Arabia Business Etiquette & Culture. (2012). Retrieved from http://www.cyborlink.com/besite/saudi-arabia.htm

Kwintessential. (2013). Retrieved from http://www.kwintessential.co.uk/intercultural/management/saudiarabia.html

World Business Culture. (2013). Retrieved from http://www.worldbusinessculture.com/Saudi-Arabian-Business-Structures.html

Islamic Finder. (2014). Retrieved from http://www.islamicfinder.org/

Al-Ghamdi, S. M. (2008). Retrieved from http://www.slideshare.net/manishonlin/international-business-practices-in-saudi-arabia

Katz, L. (2010). Negotiating International Business - Saudi Arabia. Retrieved from http://instruction2.mtsac.edu/rjagodka/BUSM_51_Project/Negotiate_html/SaudiArabia.htm

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