Influence of cultural factors in business: a focus on Middle Eastern Culture

During the lessons in Regional Cultural Studies in AMSIB, we have been through many different cultures in the previous classes. Each one of them has some obvious differences. I have always found the Middle East and North Africa culture fascinating.

The language and the religion they have in common have unified them. The Arabic language originated in the Arabian Peninsula in the 5th century CE. It is an official language in 26 countries and is spoken by millions of people worldwide. Its rich history and cultural significance continue to shape the world we live in today. Their religion, Islam, is an Abrahamic monotheistic religion centered on the Quran and the teachings of Muhammad, the religion's founder. Adherents of Islam are called Muslims, who are estimated to number approximately 1.9 billion worldwide. 

These are the key factors for understanding the culture, but there are also several factors that we need to take into consideration so we can do business with them successfully.

 


Religion, business model and communication

The Middle East is predominantly Muslim, and Islam plays a profound role in shaping the cultural, social, and business practices in the region. Religious principles influence various aspects of business, from work schedules to communication styles and ethical standards. For workweek and holidays, they usually work from Sunday to Thursday, since they keep Friday as the main day for religious observance (Jumu'ah prayers). This is important for businesses to consider when scheduling meetings, deadlines, and operations. Halal standards is also crucial to know because as many people know, they do not eat food that is not halal, not only in the food sector but also in sectors like finance and cosmetics, there is some standards as well to pay attention at, for instance, Islamic banking follows Sharia law, prohibiting interest (riba) and speculative practices (gharar). Lastly, during Ramadan, the Islamic month of fasting, work hours are often shortened, and the pace of business slows down. 


Regarding their business model, family ties are important in their culture, that is why the majority of the private sector is controlled by family-owned businesses with family members working on it. Therefore, it is essential to maintain a good relationship with their relatives when it concerns hierarchy and authority in the company.

In the Middle East, business relationships are built on trust and personal connections, rather than solely on contracts or transactions. This is often expressed through indirect communication, extensive networking, and a focus on building long-term relationships.
Unlike the direct communication styles found in Western cultures, Middle Eastern communication tends to be more nuanced and indirect. The phrase “insha’Allah” (God willing) is often used in everyday conversation, it has different meanings depending on the context, in some situations can mean "yes", in others "no". Consequently, reading between the lines and understanding context is crucial.

Then, business meetings often begin with small talk about family, health, or general life matters before getting into business discussions. Taking the time to establish trust is essential, as rushing into a business proposal without rapport can be viewed as disrespectful or overly transactional.

In addition, the concept of "keeping face" is significant as they care about their image conveyed to others in public. The Arabs are also known for their hospitality and generosity, but it may be a prelude to seek some kind of commitment or request.

Gender roles and certain rules

While there has been significant progress regarding women's roles in business in the Middle East, the cultural and religious expectations regarding gender differ from Western norms. Gender roles can vary widely depending on the country, with nations like Saudi Arabia and the UAE having distinct expectations compared to more liberal countries like Lebanon or Jordan.

In some parts of the Middle East, women's participation in business and leadership is limited by traditional roles and cultural expectations. However, in recent years, many countries in the Gulf Cooperation Council (GCC), including Saudi Arabia and the UAE, have made strides in empowering women through reforms and increased participation in education and the workforce. Additionally, in certain countries, such as Saudi Arabia, there are strict gender segregation rules in public and workspaces. Understanding these rules and respecting them is critical for foreign businesses. Appropriate dress codes and social interactions, especially when meeting with conservative clients or government officials, is highly required. 

Another interesting issue is that according to experts, in the Middle East, entrepreneurship is attractive for women who have grown up with technology and social media. They have ideas, ambition, drive, and determination to startup and scale-up businesses. 


Time management

As opposed to Western cultures, in which there is often an emphasis on punctuality and rigid scheduling, the concept of time in the Middle East can be more fluid. Meetings may start late, or deadlines may be seen as more flexible. This approach comes from a business culture that values relationships, where building trust is often more important than focusing strictly on the schedules.

For businesses working in the region, patience and adaptability are key qualities. Negotiations, especially with government entities, can take time, and businesses should be prepared for unexpected delays.

Middle Eastern business people often focus on the long-term benefits of a business relationship rather than quick gains. Demonstrating a commitment to the relationship over time, rather than pushing for immediate results, is often more valued.

Arab people also link time with destiny as they believe in fate, that things will happen when they are supposed to happen.

Conclusion: a complex culture

Operating in the Middle East requires businesses to adopt a culturally aware approach, recognizing the critical role that religion, hierarchy, communication, gender norms, and time perception play in business practices. Success in the region is less about adhering to a universal business model and more about adapting to the distinct cultural factors that govern interactions and decision-making.

The Middle East has a complex culture that influences many aspects of business and social interactions. As a business person you have to be a quick-learner and not only react quickly, but also respond in an appropriate way. In my opinion, in general, doing business with other cultures requires respect and be well-informed, for example, taking lessons or courses related to your possible partner's culture. Taking into consideration all the factors mentioned is essential for succeeding. 

References

  • Alif arabic (2022). What is the history of the Arabic language? https://alifarabic.com/what-is-the-history-of-the-arabic-language/
  • Culture Vulture (2024) The Culture of Time in the Arab World. https://www.commisceo-global.com/blog/the-culture-of-time-in-the-arab-world
  • Kayed, N. (n.d.). Cultural Considerations for Doing Business in the Middle East https://www.henleyglobal.com/newsroom/industry-insights/cultural-considerations-doing-business-middle-east#:~:text=Middle%20Eastern%20countries%20are%20generally,Observe%20time%20and%20be%20punctual 
  • Tewari, H. (2023). Women in the Middle East are becoming entrepreneurs. Here’s why. https://fastcompanyme.com/work-life/women-in-the-middle-east-are-becoming-entrepreneurs-heres-why/#:~:text=Therefore%2C%20one%20in%20every%20three,and%20influence%20is%20notable%20everywhere. 
  • Wikipedia (2016). Islam. https://en.wikipedia.org/wiki/Islam

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