Essential Tips for Doing Business in The Middle East

Before doing business in the Middle East, it is imperative to learn about areas such as business culture, business etiquette, meeting protocol, and negotiation techniques. 

This is where Middle East cultural awareness training comes in.

In this short guide to doing business in the Middle East, examples of Arab business culture and etiquette that we usually share in such training are explored.

These are in no way meant to represent a comprehensive summation of tips on doing business in the Middle East, but a highlighting of some main areas one may consider.

To be successful in the Middle East, you need to understand the role of face, shame and honour in Arab culture. Photo by Katsiaryna Endruszkiewicz on Unsplash

Impact of Islam on Doing Business in the Middle East

One cannot talk about the Middle East in a cultural sense without mentioning Islam. Islam permeates all levels of society. It provides guidance, values, and rules for personal life, community relations, and ways of doing business.

Within the confines of this short introduction, justice cannot be served to such a highly complex faith. Therefore, it is advisable that one conducts their own research on Islam before doing business in the Middle East.

However, we can look at a few examples of the manifestations of Islam and the way in which these may impact your business trip.

Muslims are obliged to pray five times a day. Prayer times are announced by the mosques using the call to prayer (azan). Not all Muslims go to the mosque. Some pray at home or in the office. Daily routines, appointments, and meetings must be fitted in appropriately around prayer times. Friday is the day for congregational prayers, and it is obligatory for all males to attend.

Avoid trying to do business in the Middle East during the month of Ramadan. Muslims fast from dawn till dusk, which involves refraining from eating, drinking, or smoking. During business hours, general activity is reduced depending on the nature of the company or organisation.

There are two major festivals of note. Eid al-Fitr follows Ramadan, and Eid al-Adha follows the annual pilgrimage. These holidays last approximately three days, although it is not uncommon for the government to extend them. It is best to avoid doing business on or near the two Eids.

The annual Hajj has an impact on doing business in Saudi Arabia. If you are working with the country, it’s wise to mark it into your calendar and avoid trying to achieve anything important during this time, as many Saudis take time off work.

Meeting and Greeting Etiquette When Doing Business With Arabs

The traditional Islamic greeting you will hear is ‘Asalamu alaykum‘ (peace be with you). As a non-Muslim, you would not be expected to use it, but if you did, you would receive the reply ‘wa alaykum salam‘ (and peace be with you).

When doing business in the Middle East, handshakes are always used and can last a long time. Islamic etiquette recommends that one wait for the other to withdraw their hand first before doing the same. Always use the right hand. Do not be surprised if your hand is held while you are led somewhere. Holding hands among men is common and does not carry the same connotations as it does in the West.

Arabs are fairly informal with names when doing business and generally address people by their first names. John Smith will be addressed as Mr. John. Arab titles of note are Sheikh (an old man, scholar, leader), Sayyid (descendant of the Prophet Muhammad), and Hajji (one who has performed the pilgrimage).

Doing Business Across Genders in Arab Culture

The roles of men and women are far more defined in the Arab culture. Interaction between the sexes is still frowned upon in certain arenas. However, when doing business in the Middle East, it is not uncommon to come across women.

If you are introduced to a woman as a male, it is advisable to wait and see if a hand is extended. If it is not, then do not try to shake hands. Avoid touching and prolonged eye contact with women. Also, in meetings and when speaking, leave a little extra room between yourselves. If they widen the gap, don’t try to close it.

Doing Business is Personal in the Middle East

Many Westerners who have lived or worked in the Middle East might use the words chaotic, disorganised, and frustrating when discussing doing business there. Although this is a matter of perception, it is true that business runs on very different tracks from business in the West.

The Arabs do not separate professional and personal life. Doing business revolves much more around personal relationships, family ties, trust and honour. There is a tendency to prioritise personal matters above all else. It is therefore crucial that business relationships are built on mutual friendship and trust.

A consequence of this mentality is the system known as ‘wasta‘. If you have friends or contacts in the right places, then rules can be bent, or things can be done more quickly. The system works on the basis that favours are reciprocated and never forgotten. Although it may seem biased, it is something that should be exploited when doing business in the Middle East.

Relationship building is essential if you’re doing business with Arabs. No relationship means you are an abstract entity. A nice way to ingratiate yourself is to try to use a few basic Arabic phrases.

Photo by Levi Meir Clancy on Unsplash

Doing Business and The Spoken Word

The Middle Eastern culture places more value on someone’s word as opposed to a written agreement.

A person’s word is connected to their honour. Contracts are viewed as memorandums of understanding rather than binding, fixed agreements. Be sure to promise only things you can deliver. Failure to do so will result in loss of honour.

Meetings & Negotiations in the Middle East

Meetings should not be made too far in advance, as changes in personal circumstances may impact your appointment. Once an appointment has been made, confirm it verbally with the person you will meet a few days before.

Initial meetings are all about relationship building. Building trust and establishing compatibility are key requisites for doing business in the Middle East. One should engage in conversation and try to get to know the ‘person’ you are doing business with.

Meetings can be chaotic. Always be prepared to exercise patience. Phone calls are taken during meetings, and people may enter the meeting room unannounced and proceed to discuss their own agendas.

Meetings are circular in nature. They do not follow a linear pattern and are not structured around agendas or targets. Issues are raised as and when.

Punctuality is expected of foreigners. Although the Arabs place a high emphasis on punctuality, they rarely practice it themselves. In fact, in Saudi Arabia, if they want to stress that a set time must be adhered to, they use the term ‘mow’id inglizee’ –  literally, ‘an English meeting’. However, if you are running late, do not panic, as polite excuses will be accepted.

If negotiating, remember the Arabs were a trading people and are excellent negotiators. Haggling takes place everywhere, whether at the shop or in the boardroom. Decisions are made slowly. Bureaucratic formalities tend to add to delays. Do not use high-pressure tactics as they will be counter-productive.

Key Takeaways on Doing Business in the Middle East

Below, we’ve summarised the most important considerations for doing business in the Middle East, including, but not limited to: 

• Learn to discriminate between stereotypes and myths
• Gain an understanding of Islam as it affects nearly every area of business and social life
• To make the best impression, you should understand the Middle Eastern etiquette of meeting and greeting
• Business is almost always personal, so be prepared to engage in plenty of small talk and to accept invitations to social events.
• Be prepared to be patient as meetings can be circular in motion and may not follow an agenda.

Photo by Florian Wehde on Unsplash