The first word that comes to mind when you hear Saudi Arabia is OIL. But, there is much more to this relatively young country than just Black Gold.  This kingdom is steeped in culture and religious conviction (“Muslim (official; citizens are 85-90% Sunni and 10-15% Shia))”. Additionally, this nation is a monarchy created in 1932 by ABD AL-AZIZ bin Abd al-Rahman Al SAUD (Ibn Saud) constructed by a proud, self-sufficient nation (CIA, 2016). However, this region has also been plagued by stereotypes and animosities. Furthermore, the kingdom has also struggled with their perceptions of the United States and European nations.  In the past decades, “both Arabs and Westerners are given to distorting each others’ actions, behavior, and beliefs, thus promoting mutual xenophobia” (Moran, Abramson, & Moran, 2014, p. 331).  As defined by Merriam-Webster, xenophobia is identified as the “fear and hatred of strangers or foreigners or of anything that is strange or foreign” (Xenophobia, n.d.). This hostility and distrust of different cultures between Western societies and Saudi Arabia have historically caused a lack of cultural synergy and cross-global industrial trade.

However, ‘Times They Are A-changin”! Since the ascension of King Salman bin Abdulaziz Al Saud to the throne in 2015 and the subsequent assignment of Mohammed bin Salman, as the Deputy Crown Prince, President of the Council for Economic and Development Affairs, and Minister of Defense, the kingdom is going through many changes. Among these transformations, Saudi Arabia is finally attempting to embrace globalization and they are looking to diversify their economy to not be so dependent on Oil production. These changes, also known as Mohammed bin Salman’s “Vision 2030” consists of: (Alkhalisi, 2018)

1. Increased Taxes

By increasing local gas prices to ~ $2.05/gallon at the pump and adding a new 5% sales tax, the kingdom has been able to assist in reducing the country’s deficit without relying on foreign loans.

2. Movies are back

After 35 years, the people of Saudi Arabia are finally able to see the movies available to the rest of the world that had been prohibited for many years in the kingdom. Additionally, it is expected that this introduction could have the potential to be a $1 billion industry.

3. Women can drive

The first step in increasing the rights of women and the goal of Vision 2030 to expand women in the workforce from 22% to 30% and the ultimate goal of “generating 65% of GDP from the private sector” starts with women gaining the right to drive. This has been a long battle that has been finally attained.

4. Family days

Additionally, women and men have often been segregated in public. Thus, a second win for women’s right scan be observed in the concept of “accommodating families” at sporting events and allowing men and women to sit together in communal areas.

5. Increased tourism

With the growing drive to promote tourism, for the first time in history, tourists will be eligible for visas. Furthermore, the government is planning to build resorts in an attempt to “attract 30 million visitors a year by 2030, up from 18 million in 2016”.

6. Aramco – “going public”

The Saudi stock market has surprisingly been an attractive emerging market without the inclusion of the government’s largest owned company, Aramco. However, if officials sell as few as 5% of the shares to investors, this “would raise $100 billion”.

Due to the contemporary philosophies and the goals of diversification of the new regime in Saudi Arabia, this is the perfect time to form alliances and bridge gaps between the Western World and the Kingdom of Saudi Arabia. In fact, Energy Minister Khalid al Falih commented “Our message to investors is that the kingdom is transformed, we’re serious about change, it’s comprehensive change”.  Additionally,” ‘(We need to) not only be ready for the future but to create the future through initiatives that are not only around our traditional strength in oil and gas, which we’re going to build on, but also about creating new industries, through mining, through more advanced manufacturing, through tourism and at the same time socially there are a lot of reforms – all of these are coordinated and they’re bringing a lot of hope,’ he said” (Ellyatt & Gamble, 2018, para. 14-15).

Thus, there is no time like the present for all parties to embrace the concept of growth and change. As noted by Moran, et al. (2014), “practicing synergy is the key to peace and prosperity in the twenty-first century, both for the region and the world… only in such peaceful cooperation can the world community, especially through the United Nations, contribute to solutions of current Middle Eastern challenges” (p. 332). Therefore, the US and European leaders need to understand and learn the Saudi Arabian culture to engage in open communication and industry diversification that will be welcome in the kingdom. There is no time like the present.

 

 

References:

Alkhalisi, Z. (2018, January 03). 6 ways life in Saudi Arabia will change in 2018. CNNMoney. Retrieved from https://money.cnn.com/2018/01/03/news/economy/saudi-arabia-2018-year-of-change/index.html

Central Intelligence Agency. (2016). Saudi Arabia. In The World Factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/sa.html

Ellyatt, H., & Gamble, H. (2018, January 23). Goodbye oil, Saudi Arabia’s future economic growth will come from its mega-cities. CNBC. Retrieved from https://www.cnbc.com/2018/01/23/goodbye-oil-saudi-arabias-future-economic-growth-will-come-from-its-mega-cities.html

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences (9th ed.). Oxford,UK: Routledge. ISBN: 978-0-415-71735-9

Saudi Aramco efforts to balance upstream and downstream industries in KSA. (2016, April 07).  Oil Review.me. Retrieved from http://www.oilreview.me/petrochemicals/saudi-aramco-efforts-to-balance-upstream-and-downstream-industries-in-ksa

Xenophobia. (n.d.). In Merriam-Webster.com. Retrieved October 7, 2018 from https://www.merriam-webster.com/dictionary/xenophobia

 

 

 

 

 

 

In a question and answer style article examining women’s rights in the Middle East, PBS (2002) points out, “The Quran explicitly states that men and women are equal in the eyes of God.”

Historically, there are interesting pieces of Islamic (or Muslim) history that support gender equality. One is this: “Khadijah the first wife of Muhammad. This woman was a widow; she was wealthy and ran her own successful mercantile business. She employed men to work for her. Muhammad started as her employee. This shows that women, prior to Islam, could own and manage businesses” (FaithFreedom.org, n.d.).

Another is: “During the time of Muhammad, or perhaps just before he announced his prophethood, a woman, called Sijah, had claimed to be a prophetess and had gained many followers” (FaithFreedom.org, n.d.).

If the Quran states men and women are equal, and Muhammed himself initially lived with women who were strong partners, why, then, is there such a disparity between the rights of women and the rights of men in the Middle East today? The Quran is, quite literally, the law of the land. If the book says men and women are equal, and if the book is the basis for most of the laws governing the citizens, why is equality not a thing?

Max Fisher in the Atlantic (2012) tells us, “The fact that feminism is broadly (and wrongly) considered a Western idea has made it tougher for proponents. After centuries of Western colonialism, bombings, invasions, and occupation, Arab men can dismiss the calls for gender equality as just another form of imposition, insisting that Arab culture does it differently.”

Is the treatment of women in Arab nations truly just a dig at Americans and others who would seek to tell the rest of world what to do? Really? Is Saudi Arabia banning women from leaving their homes without their male guardians just to pop a proverbial middle finger up at Western Civilization? I really don’t think so. That seems like such a stretch.

 

 

References

Fisher, M. (2012, Apr. 25). The Real Roots of Sexism in the Middle East (It’s Not Islam, Race, or Hate). The Atlantic. Retrieved October 8, 2018 from https://www.theatlantic.com/international/archive/2012/04/the-real-roots-of-sexism-in-the-middle-east-its-not-islam-race-or-hate/256362/

FaithFreedom.org. (n.d.) Muhammed: A Misogynist. Retrieved October 8, 2018 from http://www.faithfreedom.org/challenge/misogynist.htm

Public Broadcasting Station (PBS). (2002). Global Connections: The Middle East. Retrieved October 8, 2018 from http://www.pbs.org/wgbh/globalconnections/mideast/questions/women/

It is very easy to see the cultural differences between American and Middle Eastern business practices. With American business leaders focused on the capitalistic perspective with too much ethnocentrism, Middle Eastern leaders are focused on “…business is done between people, not merely with a company or contract.” (Moran, Abramson, & Moran, 2014) These divergent positions set up these two sides to clash. This isn’t stated in this manner to say that American business strategies are wrong or poor, but rather to describe the differences that could make successful business between these two sides challenging.

But the differences and stereotypes are not one-sided, they are ingrained on both sides. Many Americans “carry distorted cultural images… about people from the Middle East and their contributions to human development.” (Moran, Abramson, & Moran, 2014) And Middle Eastern countries such as Egypt, Turkey Saudi Arabia, and Persia take part in “’…anti-American’ campaigns” in an effort to “undermine both political and business relationships.” (Moran, Abramson, & Moran, 2014) Is it any wonder that business for Americans in the Middle East can be a challenge?

The major difference between these cultures is the underlying motivation for doing business. Middle Eastern people have a strong connection to their religious beliefs and this is apparent in the way they conduct themselves. They also have an ethnocentric perspective in wanting their business partners to align with their value system. Americans in contrast have a strong motivation to make money and are for the most part disconnected from their religious beliefs in conducting business.

To overcome the differences and be a successful leader, anyone seeking to do business with another culture needs to first understand that culture, their perspectives and motivations. Davis states four tips to be successful in the Middle East, they are face to face communication, understand the culture, get results fast, and consider getting a local partner. (Davis, 2018)

Successful business can be conducted between seemingly opposing cultures if the leaders of each take time to learn about the other. Synergy between different cultures can be achieved through education and appreciation.
I believe that a fundamental shift in thinking is required at all levels of leadership to be successful in business between cultures. Moran, Abramson, and Moran state it succinctly when they say “…cultural skills are necessary to help peoples comprehend what is actually meant when they communicate with or about one another.” (Moran, Abramson, & Moran, 2014)

Finally, it would be in any business’s best interest to conduct business in the Middle East as these countries have strong and growing economies. Specifically, Saudi Arabia in 2012 had a Gross National Product of $740 Billion mostly from the production of oil and petroleum products. Additionally, importing of various goods is also lucrative business to be a part of totaling $136.8 Billion. Taking time to create good working relationships and high-synergy teams could translate to a very profitable endeavor.

References:

Davis, R. (2018, February 14). Four Tips For Successful Business In The Middle East And Asia. Retrieved October 7, 2018, from https://www.forbes.com/sites/forbesagencycouncil/2018/02/14/four-tips-for-successful-business-in-the-middle-east-and-asia/#2b5ddeab2b6e

Mitt Romney Quote. (n.d.). Retrieved October 7, 2018, from https://www.azquotes.com/quote/1563168

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). New York, NY: Routledge.

 

According to the Global Intelligence Monitor, four of the world’s most promising Emerging Markets for the period 2012-2017 are located in the Middle East. Turkey is number 9. Saudi Arabia is number 18. The U.A.E is number 21. Egypt is number 22. (Moran, Abramson, Moran, 2014, 295).  For an organization who wishes to do business in a country such as the Turkey, they must be mindful of differences in religion and the multiple aspects of doing business. An organization can’t simply show up and expect to do business as they would in the Western part of the world.

Turkey is the historical home of both Christian and Jewish shrines, attracts thousands of Christian and Jewish pilgrims every year.  Although Christianity and Judaism have a significant number of followers, Islam is the majority religion in the country where a synthesis of Islamic traditions and Western thought is prevalent in society (Moran, Abramson, Moran, 2014 p. 311).  With a unique religious mixture, one needs to be sensitive and adaptable to interacting with the Turkish people. Islam is based on five pillars: Profession of faith (Shahadah), Prayer (Salah) Almsgiving (Zakah), Fasting (Sawn) and Pilgrimage (Haj).  Islam has been the principle binder among the people of Turkey-it is a way of life and not simply a religion.

“Divine Guidance” is a fundamental component of the Islamic economic system.  While Western businesses isolate any divine principles from guiding economic activity Islam establishes a certain set of divine rules on the economic activities of its adherents to create a control mechanism over individuals (Moran, Abramson, Moran, 2014, p. 300). Westerners on the other hand focus on maximize benefit and self-interest.  According to the utility theory which is considered the cornerstone of conventional economics, economic man seeks to maximize his/her utility and acts in his/her own best interest to achieve his/her goal.  It is fair to say the Western society has been largely influenced by this utility theory.  In contrast Islam promotes “brotherhood” and “benevolence” among the people, instead of the “self-interest” principle of conventional economics (Moran, Abramson, Moran, 2014, p. 303).

Management and leadership style is another aspect of doing business in a Islamic country.  Islam focuses its attention more on the individual people who manage or are managed, and less on the methodologies and process of management. This is because Islam believes that it is the individual people that guide and apply these management methodologies and practice through their motivations, enthusiasm, desires and emotions. Western managers maneuver for leadership positions, perhaps “shamelessly” in the eyes of the Islamic counter parts. Truth is not always spoken to maintain an advantage. Pride is often evident in management and behavior styles (Moran, Abramson, Moran, 2014, p. 306). Islamic leadership assumes a role in which they set aside his/her self-interest in favor of social goods.  This is a major difference between Western and Islamic leadership values.

Implementing and managing a successful business in the Middle East is a difficult task to perform.  But to ensure success organizations can learn and adapt to the differences the Middle East has to offer.

References

Moran, R. T., Ph.D., Abramson, N. R., Ph.D., & Moran, S. V., MA. (2014). Managing cultural differences (Nineth ed.). New York, NY: Routledge

 

 

 

 

 

 

 

 

 

(Image retrieved from BBC NEWS)

On June 24, 2018, Saudi Arabia’s Crown Prince Mohammed Bin Salman ended its countries status as the last on earth to prohibit women from taking to the wheel (Fattah, 2018).  I live in the U.S. and shamefully was not even aware this was such a thing in a faraway country.  Then, I found myself internalizing the celebration! I have read Sheryl Sandberg’s book titled Lean In, and as a result view women in the workforce through a completely different (and wiser) lens.  The so-called invisible women of Saudi are said to control as much as 40 percent of private wealth now, and despite the bans they have had to deal with, cosmopolitan female Saudis slowly forge ahead (Moran, Abramson, Moran, 2014).  Let’s just say, I was overjoyed for the women (and men) behind Saudi’s women’s rights activist groups, and social media supporters all over the world for having slowly but surely conquered this big movement in history for females in Saudi Arabia.

To my dismay, I then stumbled upon further details that depicted the “why” behind this lifted ban – to help boost PR and overall economy for their country. Over the years, diminishing oil prices have left Saudi Arabia in an economic downward spiral.  Oil, as many know is the main source of income for the country and by not expanding further away from the reliance on oil, they could be in serious economic trouble which always leads to even more disaster.

So, while I am still happy for the women of Saudi to have earned the right to drive and the additional benefits yet to come from this, lifting the driving ban is a strategic component of Crown Prince’s “Saudi Arabia Vision 2030” plan, not because woman leaned in.

This vision is built around three main themes which set out specific objectives that are to be achieved by the year of 2030 (Saudi Vision 20130, n.d.).

1. A vibrant society: urbanism, culture and entertainment, sports, Umrah, UNESCO heritage sites, life expectancy (Saudi Vision 2030, n.d.).
2. A thriving economy: Employment, women in the workforce, international competitiveness, Public Investment Fund, Foreign direct investment, private sector, non-oil exports (Saudi Vision 2030, n.d.).
3. An ambitious nation: Non-oil revenues, government effectiveness, and e-government, household savings and income, non-profits and volunteering (Saudi Vision 20130, n.d.).

With advanced education, Saudi women have begun to enter the business world, and though women today make up over half of university enrollment, they number only a fraction of the workforce (Moran, Abramson, Moran, 2014).  It’s time for the country to leverage these great women for the skills learned and help drive their country’s economy forward. “Lifting the ban on driving is likely to increase the number of women seeking jobs, boosting the size of the workforce and lifting overall incomes and output,” according to Ziad Daoud, Dubai-based chief Middle East economist for Bloomberg Economics (Fattah, 2018). Whether it’s the keys to the kingdom via fighting for equal rights or not, significant changes are looking up for the girls and women in a country seeking to make change for the good of all its people.  “But it’ll take time before these gains are realized as the economy adapts to absorbing the growing number of women seeking work.” (Fattah, 2018).

 

 

 

 

 

 

 

 

 

 

 

References

Fattah, Z. (2018). Saudi Arabia’s $90 Billion reason to allow women to drive. Bloomberg. Retrieved from   https://www.bloomberg.com/news/articles/2018-06-24/saudi-women-driving-is-seen-better-for-economy-than-aramco-ipo

Moran, R. T., Ph.D., Abramson, N. R., Ph.D., & Moran, S. V., MA. (2014). Managing cultural differences (Nineth ed.). New York, NY: Routledge.

Wikipedia contributors. (n.d.). Saudi Vision 2030. In Wikipedia, The Free Encyclopedia. Retrieved October 6, 2018, from https://en.wikipedia.org/wiki/Saudi_Vision_2030

Yaakoubi, A.E. (2018). Reuters. Retrieved from https://www.reuters.com/article/us-saudi-arrests/saudi-arabia-arrests-two-more-womens-rights-activists-rights-group-idUSKBN1KM564

 

Doing business in the middle east requires a deep understanding of how this part of the world works. As I researched how best to conduct business in the Middle East I came across an article that I found was quite helpful. As business West suggests, “Doing business in the Middle East is wholly reliant on building relationships.  To an Arab businessman or woman, family and friends intertwine with day-to-day activity and as a foreign friend, you are an honored guest – being invited to their home is the equivalent of opening their arms to you… and trusting that you will support each other in friendship and in business – it’s all part of the mix.  Business is only done with people that they like and if that means sitting for 3 hours together eating a heavy lunch, that’s all part of the fun” (Hildersley, 2014). This emphasis on relationships in business is very much intertwined with the success of conducting business in this part of the world. Therefor taking a more personal approach to obtaining business deals in a genuine and sincere way would best suit anyone looking to build a business in this part of the world.

 

By conducting meeting in person this is one way that a strong business relationship can be fostered. “When dealing with business people, it is important to attempt to speak with them in person. The culture is reliant on trust and friendship, and meeting in person is the only way to build that. Face-to-face interaction is also important because the process of coming to an agreement takes much longer in the region, resulting in more time needed to get to know each other personally and professionally” (Davis, 2018). As someone who values face-to-face interaction I can see why this would be so important. It is the only true way to get a good feel if the partnership is a good fit.

 

Additionally, understanding the deeply rooted culture in this area is incredibly important.“Peoples from ancient civilizations, like Egypt, Persia, Turkey and Arabia, are proud of their past- its history, art, poetry, literature, and cultural accomplishments” (Moran, Abramson, & Moran, 2014). With the Middle East being one of the birthplaces of civilization this rich history is a part of who they are as a people and country. Therefor understanding the pride, they take in their history carries over in to the cultural beliefs, and values instilled within them today.

 

It also is important to understand how they see us as Americans and how to utilize that information to build a productive relationship with them. “Currently, resentment centers on America as the only superpower capable of military intervention in the region, especially the U.S. coalitions that went to war against terrorisms twice in Iraq, support of Israel against Palestinians, as well as against the Taliban in Afghanistan” (Moran, Abramson, & Moran, 2014, p. 331). Therefor I would advise going in to the relationship with an open mind with genuine and sincere intentions. Understanding the tensions that may exist and fostering a personal relationship with anyone you are looking to go in to business with.

 

Works Cited

Davis, R. (2018, Februart 14). Four Tips For Successful Business In The Middle East And Asia. Retrieved from Forbes: https://www.forbes.com/sites/forbesagencycouncil/2018/02/14/four-tips-for-successful-business-in-the-middle-east-and-asia/#2d18eef92b6e

Hildersley, S. (2014, June 18). Women Doing Business in the Middle East. Retrieved from Business West: https://www.businesswest.co.uk/blog/women-doing-business-middle-east

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences(9 ed.). New York, NY, USA: Routledge.