Preparing Yourself Mentally to Enter a New Business Culture

Preparing to enter a new market always requires business managers to learn the ‘new rules of the game.’ Entering the various markets within the Middle East is no different. One of the best ways to start is to look beyond the available economic and business statistics to educate yourself as much as possible about the culture, the religion and the geography of the country you are targeting. Why? Because these areas determine the ‘playing field’ and how the rules are set.

If you are focusing on Arabic-speaking markets in particular, be prepared to invest quality time and resources to carefully target, research and select the market(s) that you want to enter. The next step is to make regular visits to establish long-term relationships with your local representatives and potential customers.

This usually means that you should spend a good twelve months researching opportunities, matching these with your company's capabilities and visiting the market(s) to confirm your startup strategy and to understand the way your representatives want to do business.

Even small companies can succeed in markets like the United Arab Emirates (UAE) and Saudi Arabia if they present a strong profile. Prestige is important in this part of the world, so pay attention to your company's branding. Potential clients will want to confirm your status in your home country before moving ahead. A good-quality web site with strong links to relevant industry partners and associations really helps build confidence at the beginning of a relationship.

11 Tips for Success

Here is my list of ‘11 tips for success’ to get you started down the right path for doing business in the Middle East.

• Research each potential market well, with a strong focus not only on the business culture, but also on geography, geopolitics, religion and history. Acquire a thorough understanding of these issues and how they relate to doing business in a particular market.
• Define your brand and business proposition carefully.
• Use testimonials to reinforce your company's standing.
• Align your business plan with your partner's plans and goals.
• Build robust relationships with key business partners supported by regular personal visits to the region. Your potential partners in this area of the world prefer to do business with those with whom they have a personal relationship, so prepare to spend a great deal of time (by U.S. standards) on the ‘getting-to-know-you” process. Business will only be discussed once an atmosphere of trust and friendship has been established.
• In addition, personal appearance is an important measure of success in this region, so dress and present yourself well. Education is also highly respected, so don’t forget to mention your advanced degree, especially if it is from a prestigious university.
• Have respect for your business partner. If they have developed a company you want to do business with, it took them just as much effort to develop their business as it has for you to create yours.
• The societies are hierarchical in the Middle East. In terms of doing business, this means that many companies are structured around the family. Decisions usually come from the top only after a consensus of the various stakeholders has been reached. As a consequence, decisions are reached slowly. If you try to rush things, you will give offence and risk your business relationship.
• Perform proper due diligence when checking references of potential business associates. Understand their capability to gain access to the government and to key clients as they transact business on your behalf. It is imperative to understand who can do what for you.
• When negotiating in the Middle East, do not use high-pressure sales tactics because they will work against you. People here tend to be shrewd negotiators who are especially interested in price. Although business negotiations are often conducted in English, contracts are written in Arabic. If there are both English and Arabic versions, the Arabic version will be the one applied.

  Repeating your main points indicates you are telling the truth. Be aware of the fact that there is a tendency to avoid giving bad news and to give flowery acceptances, which may only mean “perhaps.” If you change the lead negotiator, negotiations will have to start over.

• And last, but certainly not least, you must take into account (due to reasons of geography, culture and religion!) that the perception of time is vastly different between the Middle East and the U.S./Europe. Nothing happens at breakneck speed in markets like Saudi Arabia or Kuwait.

  Patience is a virtue in this part of the world, and impatience is viewed as criticism of the local culture. People are event- rather than time-driven, i.e., the event of getting together is more important than the timeliness of the meeting or the outcome. The bottom line? Relax, enjoy the coffee and schedule one appointment a day!

And one bonus tip …

• Appointments with traditional Arab-speaking entrepreneurs are rarely private! Interruptions in the form of phone calls and visits from friends and family are to be expected. The key? Remain calm and understanding.

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Ahmed Ezzat is the Marketing Manager for Europe for Arabize Computer Services Ltd. He can be reached at ahmed.ezzat@arabize.com.eg.