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Business in the Middle East

Submitted by on 2007-02-22 and viewed 285 times.
Total Word Count: 559
  

Middle Eastern countries located around the Arabian Gulf engage in intense and profitable business partnerships with other countries. The UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, Iran, and Iraq, are active in trade with other nations. The people there, sometimes referred to as Arabs, have certain traditional customs and business practices, guided by religious dictates and other long held beliefs, which vary greatly from the way business is carried out in the West. Foreign companies who want to conduct business in the Middle East will profit immensely if they learn to understand the local culture, business conventions, and the intricacies of Arabic etiquette.

Language, Religion, and Culture

Middle Eastern countries mainly speak Arabic, the language used officially, along with English. There is a strong emphasis on religion and cultural beliefs are based on the religious canons of Islam. Religious dictates influence business practices and social behaviour.

Muslims are deeply religious by nature, and pray five times a day. The prayer call (azan) is given through the public address systems at the mosques informing worshippers to pray at home or at work.

Business activities are reduced during festival time in the Middle East, which starts during the month of Ramadan. Muslims fast all through the day to the Eid al-Fitr festival, which marks the end of Ramadan. Eid al-Adha is the second major festival that follows the annual pilgrimage to Mecca. Eid al-Adha begins 70 days after the end of Ramadan. Most business establishments remain closed during festival days, which may extend up to three days or more. Therefore, these times are not good for scheduling appointments for business.

Social Conventions of Greetings

Muslims greet each other with the salutation “Asalam alaykum” (Peace be with you) and an embrace, followed by a response, “Wa alaykum salam” (And peace be with you). People shake hands with each other on first meetings and it is common for your Middle Eastern counterpart to extend the handshake by a couple of minutes, longer than you’re accustomed to. Your business associate may even lead you by the hand to the conference or banquet hall. Businessmen address everyone by their first names, but may call you Mr. Ken, if your name happens to be Ken Galbraith.

Business Practices

Business meetings are not as well-structured as you might hope for in the Middle East. To the Western business delegate, a meeting may appear very disorganised. You can get things done if you have connections in the right places, a local practice called “wasta.” People honour their verbal commitments and personal rapport and relationships are important to business collaborations.

Business Meetings and Etiquette

If you have scheduled an appointment well in advance, make sure to reconfirm it just prior to the meeting, as it is common for your Middle Eastern business counterpart to change his plans due to personal obligations. First meetings usually are icebreakers and starting points for building personal relationships. The success of your partnership will lie in your ability to establish trust and credibility, which Arabs value highly. Meetings may be interrupted by phone calls and unannounced visitors, which can be extremely frustrating for those who are unaccustomed to these practices.

The Arabs are brilliant negotiators, but are likely to haggle over prices and timelines. Bureaucratic delays are quite common, which is the chief reason for slowing down the decision-making process. Patience is a virtue during these delays.

Conclusion

Middle Eastern countries have always been known for their bustling trade activities with foreign nations. It can be very profitable for overseas businesses to enter into partnerships with the Arabs as large volumes of business are transacted there. If you read and understand the points mentioned above about their business and cultural practices, you will no doubt be successful in achieving the best possible outcomes.


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Ryan Sharpe researches and writes on financial and business matters. Find further information on www.communicaid.com/cross-cultural-training/cross-cultural-awareness.html">Cross Cultural Communication Training