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How to do Business in the Middle East - 15 Essential Tips

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Each market in the world has different business dynamics. You cannot start your business in the Middle East in the same way as you start a business in the Western world. The Middle East is the region with full potential. Many entrepreneurs want to invest in this region to explore untapped opportunities. At present, doing business in this region has become very easy because of many business reforms.  The Middle East encompasses the Persian Gulf and Arab Gulf states of Oman, Kuwait, Bahrain, Qatar, United Arab Emirates, and Saudi Arabia. These countries represent the political and economic block of the Gulf Cooperation Council GCC. Let’s have a look at how you can penetrate this region successfully.

Selecting the Local Partners

Whenever you enter the foreign markets, the first challenge you have to go through is competing with local companies. Therefore, you need to select a local partner. The Gulf companies will sign Memorandum of Understanding MoU and strategic partnership with foreign companies with great interest. These companies will support you and help you in producing and selling products. Although it is very beneficial to work with local partners, don’t get trapped with leads and new orders. Sometimes, it becomes hard to manage local partners. Therefore,  find such a local partner that creates synergy between both organizations. Moreover, people have the same intellectual level.

Understanding the Cultural Diversity

Do you know what comes into the minds of Western people, when they think of the Middle East, oil, dessert, and sands? This is one aspect of the Middle East. It enjoys a diverse culture that ranges from Morocco to Yemen. Moreover, there are 20 countries with different backgrounds and histories. Approximately, 335 million people reside in this region which is 6% of the global population. The MENA is the most diverse region of the Middle East consisting of oil reserves. On the other hand, there are less resourceful economies like Egypt, Yemen, and Morocco. For a successful business venture in the MENA region, you should understand the cultural diversity So that you can produce and sell products according to the target market's preferences.

Know-how of Arabic Language

One thing which is famous about Arabs is that they are very proud of their language. This is because Arabic is the language of Muslim's Holy book Quran. Therefore, to get entry into the Arab world, you must have the know-how of the Arabic language. Learning a few phrases of Arabic will show your respect towards Arabic culture. You can finalize your deal with Arabic stakeholders if you communicate with them in a language that they understand. If you are in the e-commerce business, then you must translate your website into the Arabic language. In this way, people will know about your business and will buy products and services from your company. It is better to hire a professional translation agency. They will provide you with affluent website translation services and help you in approaching potential customers.

Find a Business Associate to Penetrate in Arabic Region

You must find a business associate or influential friend to mitigate the barrier to entry in the Middle East. If you don’t have any acquaintances, then do go for professional advice on business matters. This will channel your efforts in reaching potential customers before your competitors. Try to find stakeholders that have already done business before in the Middle East. For example, if you have a Salesforce from the Arabic region that has already met the sales targets before, then it saves you from target market challenges. Making your business team with experienced people will do wonders for your business. Arab people love to do business with those people that are warm and friendly. Therefore, you should be open to them in business communication and start with a little chat to break the ice.

Business Decision-Making in UAE

Stakeholders in the UAE take time in taking any major business decision. Therefore, you need to be very patient and flexible. If you are impatient, then it will give a bad impression of your character to the business partner. It might be possible, in the future, they refuse to work with you. The important thing to keep in mind is no matter if it is your personal life or professional life, you need to demonstrate patience in every aspect of life while living in the UAE. It will help you in dealing with the most crucial phases of business. Managers cannot make any decision unless they consult their stakeholders. On the other hand, employees cannot question the decisions made by managers. They have to do whatever is told by their managers. Business decision-makers that are usually the managers are great risk-takers.

Face to Face Communication is Preferred

If you are unable to meet your business counterpart for any reason, then don’t forget to make a phone call. People living in the Middle East don’t give importance to written communication and e-mails. They often go to the spam folder. Therefore, you must call them to have a follow-up on your business deal. If you are in Saudi Arabia, then don’t ever think of doing business communication on the phone. They prefer meeting each other for business purposes. The same scenario goes for countries in the MENA region. You will often find Arab people checking their smartphones if you are communicating with them face to face. Don’t get offended. Try to understand their language and culture. They are not showing you disrespect but keeping pace with innovative technology.

Business Attire

Businessmen living in the Middle East usually dress in the same way as businessmen around the world. However, it is recommended to wear the dress according to the region and business sector. Wearing dark colors is recommended. You should avoid wearing short sleeves and shorts. This applies to both men and women to keep modesty in society. People in Arab countries give great importance to outward appearances. It depicts their social status in society. Therefore, to have a good impression on your business partner, you should wear comfortable and high-quality clothes. The weather has also affected the clothes that people wear. When Western people come for meetings in the Middle East then they put off their jackets and extra shirts in cars because of warm weather Otherwise, they will sweat. Arab hosts understand this thing. Therefore, if you are attending the meeting, they will not mind if you take off your jackets.

Understanding the Hosts

The Golf corporation council implements common business practices. However, there are still many differences among different Arabic countries because of cultural nuances. No doubt that Arabic people are arrogant, but making assumptions about them before starting the business is not good for all stakeholders. You need to have the know-how of locals so that you can understand the consumer behavior of Arabic people. If you are unable to understand the local people then go for professional advice from a reputable local law firm like chambers of commerce, or you can hire a local law firm. Moreover, your homeland embassy can also be of great assistance to you.

How to Understand Arab Negotiation

Arab people are not straightforward in negotiations. You will come across many vague terms, metaphors in negotiations. They don’t speak like this to irritate you. It is their way of negotiation to finalize the table deals. They are aware of the fact that insulting a business partner will result in losing the deal. Therefore, you need to be very submissive and open to considering all business options. Moreover, you need to ensure that everyone in the room understands what you are saying. One important thing to know about Middle East people is that they don’t ask for any clarification. Therefore, you must clarify everything in the business negotiation.

Signing Business Deals

Before starting your business in the UAE, you need to check which companies are serious about doing business with you. If you want to do business with a certain company, then don’t start up with the mega project. First, go for small projects. Once they are successful, and you are successful in making a good relationship with your client, then you are ready to sign mega projects. You can sign mega business deals and spend your time and money on these deals without any fear.

Organizational Structure

Hierarchy levels are strictly followed in the UAE business culture. Organizations follow a vertical hierarchy structure. The senior and old employees are in top positions. They are promoted on merits. Moreover, they are responsible for making decisions for the company. On the contrary, the employees at the lower level have no input in business decisions. They are bound to accept the top management decisions. Therefore, if you want to do business with any organization, then you need to develop good relationships with the top management.

Business Cards

All entrepreneurs and businessmen should have their business cards. Your name, company name, designation, phone number, e-mail, and website should be mentioned on it. The important thing to note is that your card should be both in English language and Arabic language. People's attitude towards business cards in the UAE is very casual. They usually present to each other before the start of the meeting. Do remember to give your business card with your right hand because it is considered offensive if you give it with your left.

Role of Women in Business in the UAE

Women are playing a massive role in business in the UAE. They are taking more education and focusing on careers rather than getting married. Many women from abroad are coming to the UAE to seek good jobs and to start their businesses. The UAE government is also supporting women by providing them with facilities like part-time, flexible hours, and maternity leaves. You will be surprised to know that 66% of the women are present in the public sector. Additionally,30% are serving the managerial positions and only 27% are in the UAE cabinet.

Corporate Social Responsibility in Business

Corporate social responsibility has become an important part of the UAE business culture. Back in February 2018, the UAE government passed a CSR law and announced incentives for the businesses that opt for it. Many financial leverages and exemptions are given to those companies that are performing corporate social responsibility on a global level. Many companies are spending on welfare projects, while some are working on environmental issues.

Business Corruption and Fraud in the UAE

The UAE penal takes strict action regarding bribery, embezzlement, and abuse in any business venture. This is why these types of crimes don’t happen often in the UAE. According to the survey by Transparency International, the UAE is the least corrupt country in the world. The main challenge they face in corruption is money laundering. Transparency International has reported that millions of dollars are brought in Dubai. Moreover, people have bought real estate for cash. These things are under investigation.

Wrapping Up

Tapping into any foreign country is not an easy task. You must use the native language to understand the market dynamics first and then devise a business strategy. Moreover, you need to learn the mindset of stakeholders and local business partners. So that you can deal with them accordingly. Doing business by following the country’s rules and regulations and understanding the target market preferences will make your business venture successful in the UAE. Are you ready to do business in the UAE?

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