Middle East: Top Ten Tips for Doing Business
Deborah Swallow | August 20th, 2009 in : General, The Middle East/Arab World, tips on doing business around the world
The Middle East comprises Iran, eight Arab states (all Muslim),
and Israel (Jewish). The Lebanon refers to itself as an Arab country but is half Arab and half Christian.
The Muslim world is a very strict society and it is essential that you observe Islamic politeness and decorum. The United Arab Emirates are less strict and very cosmopolitan; though still adhere to Muslim values. Segregation of the sexes is an important feature of the Arab world. Men – DO NOT under any circumstances touch an Arab woman or make direct eye contact with her. No one should behave in public in a flirtatious or affectionate manner – not even married couples. Alcohol is prohibited in most parts of the Middle East and gambling is considered evil.
Women should always be very modestly and conservatively dressed, often covered fully by a burka (a long black coat, with or without a veil). Skirts below the knee, high collars and long sleeves are required. You should check on any practice regarding wearing a long scarf for hair cover. There are special areas for Westerners where ‘normal’ dress, behaviour and customs are allowed out of sight of the locals. The United Arab Emirates (Dubai) and The Lebanon (Beirut) are the exceptions; they accept ‘western’ dress and behaviour, Saudi Arabai does not.
So far in this section you’ll find the Top Ten Tips for doing business in five countries of the Middle East along with opening times, holiday dates and festivities. These are: United Arab Emirates, The Lebanon, Kuwait, Saudi Arabia, and Israel.
United Arab Emirates
- Respect and friendship must be reached before any negotiations can take place
- All contracts should be translated into English and Arabic. Contracts may be broken at any time, justified because you are not a Muslim. However, trust and friendship will seal a true bond.
- Bargaining is part of the process of negotiation. Start with high demands and then work your way towards a ‘compromise’.
- Nothing gets hurried. Be patient. Time is flexible. Deadlines are nothing more than approximations. Transactions may take a long time to finalise.
- Decisions are made by a few principal people at the top of the company.
- Business people prefer to deal with the same people throughout, so keep the same negotiating team.
- Don’t submit a report of 7 pages or so; 57 is more to their liking! Lots of paper and documentation is seen as serious ‘meat’.
- Don’t get upset when your business meetings are constantly interrupted; this is the way of life, not a signal that you are unimportant.
- Don’t be aggressive in your attitude or demand “Yes” or “No” answers.
- Don’t underestimate the significance of social gatherings; many business transactions are dealt with then.
Public Holidays:
January 1 New Year’s Day
Feb/March Eid Al Adha
March 15 Islamic New Year
May 25 Prophet’s Birthday
August 6 H.H. Sheikh Zayed Bin Sultan Al Nahyan’s Accession Day
October 5 Lailat al Miraj
Sept-Nov Start of Ramadan(not a holiday) date changes every year
December 2 National Day
Nov/Dec Eid Al Fitr
Weekend Thursday/Friday or Friday/Saturday
Business Hours 8.30-1.00 and then 2.30-6.00 (some7.30-4.00)
Things to be aware of:
The Dubai Shopping Festival takes place each year during the month of March.
October is conference month and hotels are fully booked.
As a Muslim country, things may stop for prayers (12.30 and 20.00 for half an hour)
The Lebanon
- Lebanese are hospitable, easy going and expect personal relationships to develop in their business transactions
- A very ‘western’ country with underlying ‘Arab’ features; strong family, socialising and hospitality overlaid with French logic and style, and American sense of achievement.
- Warm greetings, handshakes, and questions about family and health are usual when meeting someone. Use titles and formality at first.
- How you LOOK is VERY important. Your clothes, hair and jewellery all make a statement about you – more than your competence or credentials
- Many woman work and want to be regarded as equals
- Expect your Lebanese counterpart to arrive a little late for a meeting. Lots of small talk is the preamble to conducting business
- American dollars are used as easily as local currency. French is the second language and English the third.
- Don’t expect things to happen quickly. Decisions are taken slowly whilst relationships build
- Don’t impose deadlines – you’ll disappoint yourself and get frustrated!
- Don’t criticise anything directly; suggest /hint you would like changes
Public Holidays
There are six Muslim and six Christian national holidays taken by all along with several non-denominational holidays:
January 1 New Year’s Day
January 6 Christmas (Armenian Community)
January 7 Christmas (Orthodox)
February 9 St. Maroon’s Day
Feb/March Eid Al Adha
March 5 Islamic New Year
March/April Good Friday/Easter/Easter Monday (western/orthodox on different dates)
May 1 Labour Day
May 6 Martyr’s Day
May 14 Prophet’s Birthday
August 15 Assumption
September 24 Lailat al Miraj
Sept-Nov Start of Ramadan(not a holiday) date changes every year
October 25 Ashoora
November 1 All Saints’ Day
November 22 Independence Day
Oct/Nov Eid Al Fitr
December 25 Christmas Day
Weekend: Sunday (Friday Muslim holy day)
Business Hours: 8.00-6.00
Kuwait
- Subjective feelings are the only way of knowing real truth; facts and evidence are unimportant. Information that does not reflect Islamic values is rejected. Solutions to all problems lie in the correct interpretation and application of divine law.
- Behave in a calm and respectful manner; don’t be loud or obtrusive. Maintain plenty of eye contact with your host.
- Public life is almost entirely the exclusive domain of men (10% of workforce are women)
- You will need a letter of introduction to make an appointment. Be prepared for up to three polite-small-talk meetings before you can start any business dealings. Business cards are of immense importance.
- No privacy in meetings – and these will be constantly interrupted. Muslims take time to pray five times a day. Serving coffee signals the meeting is being brought to an end.
- A sign of power and superiority will be to keep you (the supplicant) waiting – can be for hours. Negotiations and decisions take hours. Silence is part of this process.
- Contracts should be as brief as possible and written in Arabic (with an English translation as necessary). Hire a Kuwaiti lawyer
- Don’t assume the person asking all the questions is the decision-maker. He is usually an unimportant underling.
- Don’t consider making more than one appointment per day
- Don’t get upset if you have to keep on repeating your message or presentation; it is common practice to ask this for the people who wander into your meeting
Public Holidays:
January 1 New Year’s Day
February Eid Al Adha
February 25 National Day
February 26 Liberation Day
March 5 Islamic New Year
May 14 Prophet’s Birthday
September 24 Lailat Al Miraj
Sept-Nov Start of Ramadan(not a holiday) date changes every year
November Eid Al Fitr
Weekend: Friday
Business Hours: Traditionally 7.30/8.30-2.30 and 4.30-8.30
Saudi Arabia
- The strictest of all Arab nations; you need to obey their rules. The religious police actively stop and/or apprehend anyone who is misbehaving – e.g. men and women holding hands, inappropriate dress, a woman alone.
- If you are a woman, don’t go – (a Kuwaiti man’s advice to Deborah)!!! Women are segregated in everything. Expect to be clothed from head to foot, chaperoned, and not be allowed to drive a car. As a business woman, if you are given a visa, there will be little you will be allowed to do.
- The Saudis are very nationalistic; even other Arabs are FOREIGNERS, but are more tolerated than (in descending order) Europeans, Philippinos, Indians/Pakistanis
- Large hierarchy in organisations with Saudis always in the middle to top positions. Only the boss has the right to make a decision
- All documents should be dated in Islamic and Gregorian (western) dates.
- Everything stops or closes during the time of prayers. Saudis are forbidden to work more than six hours per day.
- Meetings are frequently interrupted. They take place early morning or after sundown, up to midnight. Often discussions that you think should be private will take place in public.
- Be very sensitive to their traditions
- Don’t be surprised if a Saudi ‘queue jumps’; he is entitled to come before any foreigners
- Don’t expect expertise to count in the decision-making process. Governance is by superiority and hierarchy.
Public Holidays
The Islamic Hijrah calendar is 12 months x 28 days – therefore, public holidays fall on a different ‘western’ calendar date each year.
February Eid Al Adha (3 days)
September Unification of the Kingdom
Sept-Nov Start of Ramadan date changes every year
November Eid Al Fitr (3 days)
Weekend: Thursday, Friday
Business Hours: 7.30/8.30-2.30 (and possibly 5.00-7.00)
Things to be considered:
Non-Muslims need to be invited or sponsored to enter the country. You need an exit permit to leave the country, whatever the emergency.
Israel
- Israelis speak bluntly, assertively and honestly, demonstrating their respect for you; i.e. you can take straight forward discussions.
- Very adept at strategic planning, they will try and guess your next move. Assume they know your game plan and be prepared with answers and new tactics.
- They want action, rather than empty words. Ask for ‘time to think’ if things are moving a little too quickly for you.
- Assertiveness is respected if you stand by what you think is right. Stick up for yourself and you should find they will compromise.
- They appear very, very argumentative.
- Israelis are experienced negotiators. They are known for being tough but fair.
- Bargaining starts with high ideals, extreme positions, and moves towards ‘compromise’.
- Keep written agreements short, but always finish up with one.
- Don’t use ‘high sounding’ or impressive rhetoric. Communication is open, direct, and to the point. Use concise and explicit language.
- Don’t be surprised if your plans have to change. The Israelis are a spontaneous people, so be adaptable.
Public Holidays:
January 28 Tu B’Shevat New Year of Trees
February 26 Purim Feast of Lots
February 27 Shushan Purim
March/April Pesach Passover (1) date changes every year
April 9 Yom HaShoah Holocaust Memorial Day*
April 16 Yom Hazikaron Soldiers Memorial Day*
April 17 Yom Ha Atzmaut Independence Day**
April 30 Lag B’Omer
May 10 Yom Yerushalayim Jerusalem Day
May 17 Shavuot Giving of the Torah**
July 18 Tisha B’Av Fast of 9 Av*
September 7-8 Rosh Hashana New Year**
September 16 Yom Kippur Atonement Day**
September 21-27 Sukkot Feast of Tabernacles (1 )
September 28 Shemini Atzeret and Simchat Torah
November 30 – December 5 Hannukah Festival of Lights
(1) The 1st and last days of Sukkot and Pesach are national holidays
*Most stores and restaurants close
**National holiday, everything closes
Weekend – Friday afternoon, Saturday
Business Hours 8.00-4.00 (Fridays 8.00-1.00)
Things to be aware of:
The Jewish day begins at sundown (6 p.m.) The feast itself begins at sundown on the day preceding the date shown and ends at sundown on the date shown. Banks and most businesses are closed during all major Jewish holidays. There is no public transportation except for taxis.
Tags: Israel, Kuwait, Saudi Arabia, The Lebanon, top business tips, United Arab Emirates
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