![[PHOTO] Light streaming through a key hole illuminating an old iron key.](../images/ph_findings.jpg)
(The Company, names and situations are disguised due to confidentiality agreement. The actual client approved the case)
The Middle East is always in the news, and the headlines always focus on the politics of the region. Are there any positives, you may wonder? Just ask the major oil, engineering, project management, and construction players as well as many other internationally minded businesses. From Microsoft to waste management companies to health services, small specialist operations, and technology transfer, companies have been making steady gains from the region for decades. So how do you?
First, successful firms recognize that the Middle East is not like other parts of the world. The people are different, the work week is different, the rituals and customs in conducting business are unique. The climate--both business and meteorological--the local rules, regulations, systems, and requirements are all very normal to them and different for you, if you have lived your life in the Western hemisphere and Asia Pacific.
Even within the Middle East there are surprising differences. For example, the United Arab Emirates (UAE) is an open market combined with nightclubs and all the expected trimmings of, for example, France-yet there is little new business to be had in Dubai for most western companies. Saudi Arabia, on the other hand, is continuing to open the door to its markets and economy. The Kingdom's capital projects budget has expanded by 46% for the next fiscal year.
So how do you go about exploring the possible opportunities in Saudi Arabia, UAE, Qatar, Bahrain, Jordan, and the like? The best first step is to contact someone who has lived and worked in the area for many years and who can give you insightful and realistic advice on specifics and what to expect in your industry. Kevin S. of Moravec and Associates has some 20 years' experience in this part of the world and can provide a forthright appraisal of what to expect. He has developed an expansive network of contacts in the region and, should you decide to proceed, can help you locate suitable local contacts. Such contacts are nearly always required; there are few legal exceptions.
Westfield Manufacturing, Sales and Services had spent a number of years developing their 'green' energy efficient air conditioning units, and it seemed logical that they should start exporting beyond the U.S. and Europe. The Middle East, with a rapidly growing population and a boom in home construction, seemed an obvious market to explore. They contacted Moravec and Associates and after some initial meetings decided to make a trip to Riyadh in Saudi Arabia, along with Kevin S., to meet with potential distributors that Kevin had suggested.
Kevin was the first to arrive in Saudi Arabia. He spent the week meeting with his business networks in Jeddah, Riyadh, Damman and Madinet Al-Jubail Al-Sinaiyah.
The first meeting between the Saudis and Westfield's Todd B. was scheduled at the International Hotel in Riyadh. Kevin and Todd arrived at 10:30 a.m., just at the conclusion of the second prayer of the day. Soon afterward their guests arrived: Abdullah the owner and Abdurrahman the manager of the local trading company.
Kevin had briefed Todd about the necessity for developing personal relationships as a precursor to doing business in Saudi Arabia. So he was surprised when, as soon as everyone was seated around the table, Todd began a formal presentation of the benefits of Westfield's AC system and the company's success in European markets. As Todd spoke, he distributed glossy multi-colored marketing materials. Abdullah and Abdurrahman listened attentively, at times smiling and nodding their heads as Todd went on to describe the financial benefits of marketing various product lines. The formal presentation took 15 uninterrupted minutes.
At the conclusion Abdullah smiled. "Thank you very much," he said.
"Any questions?" asked Todd.
A long pause ensured. Finally Abdurrahman broke the silence with, "A most informative presentation."
"I'm sure you could make good money selling these here," said Todd. "I'll leave you some additional literature on suggested retail prices and examples of some of our most successful marketing campaigns in countries similar to yours, like Malaysia and Egypt." As Todd began to gather his materials from the table he added, "I will call you in a day or two and we can go over some additional details if you like."
"Insha Allah" and "Maasalamah," replied Abdullah as he and Abdurrahman shook hands and departed the conference room with pleasant smiles.
On the way out Todd turned to Kevin. "That went well, I thought. I had their undivided attention and they were nodding in agreement. Looks good, doesn't it?"
"No," replied Kevin. "They were in fact quite shocked by your approach: people here have a strong aversion to an impersonal business relationship. Never, I repeat never, just launch into a sales pitch. They are not buying your product. They're buying personal ties and connections--a relationship with YOU. No matter how good the product, Abdullah will only deal with you if you are credible and person-oriented.
"You'll find," continued Kevin, "a preference for informality both in the structure of the organization and in dealing with people. Did you know, for example, that it's acceptable for the lowest ranked employee to have a personal audience with the top person of a company at any time without repercussions? This is part of their open-door tradition. And there's a lot more to learn about how they do business.
"At the next meeting, let me facilitate things. You should first offer coffee, tea or soft drinks. Then for a period of 5-20 minutes you and your guests should talk about several topics of mutual interest, but not the business at hand. You're a guest here, so expect your time and energy to be taxed by the 'rules of the road' of this country.
"And don't only talk about yourself--ask questions of the two men. Do you know what kinds of questions to ask, Todd?" Todd shook his head.
"We'll go into that later. Meanwhile, I'll call Abdullah to apologize and explain that you didn't appreciate the way things are done here, that you were 'jet-lagged' and brought the habits that you knew the best with you," said Kevin. "I know Abdullah and a client of mine does business with one of his import firms. He may be willing to see us again; you'll find that the locals can be very understanding of our mistakes. But if he perceives that the treatment he received at your hands was a slight against him, he will never do business with us, regardless of apologies and expected profit margins.
"Once we develop a substantive relationship with someone here, our partner will be just that, a true partner. As long as we're genuine, honest and true to our dealings, both Abdurrahman and Abdullah will be extremely loyal to the partnership and will work to ensure our mutual success.
"Remember, Todd, we have to approach these initial meetings like a courtship. We're seeking potential relationship partners, personal ties and connections, not just market share and distribution channels."