Opportunities and Potential
The first area to consider is the potential opportunities available in Saudi Arabia that could lead to wealth. It is, by far, the largest and richest country in the Middle East. With access to a large oil industry and Saudi Bedouin culture, there is a significant potential for success and significant wealth. The desert environment offers the potential for a unique lifestyle, with a high standard of living. The government offers economic stability, and there are numerous investment opportunities. In addition, there are many potential opportunities in agriculture, commerce, and tourism.
On the other hand, there is a significant risk associated with doing business in Saudi Arabia for Americans. The laws are Sharia law-based, and the government enforces a very strict moral code. Potential business owners should ensure they possess an understanding of Sharia law and Saudi culture to remain in line with the law. There is also a relatively high cultural discrepancy between Saudi and American culture which could make it difficult to easily blend into the Saudi business culture.
Travel to Saudi Arabia can also require special visas. A general tourist visa is available if the intention of travel is not business-related. Depending on the nature of the travel, Umrah and Hajj visas may also be required. Obtaining either of these visas can be highly regulated, making it important to research thoroughly before attempting to enter the country.
Gaining Knowledge and Education
Americans looking to move to Saudi Arabia should be well educated on the country and its culture. Taking the time to learn about the economic, political and cultural backgrounds of the region is vital to developing an understanding. Additionally, knowledge of the Arabic language is particularly valuable and can be acquired in lessons offered by many universities and institutes in the United States. Having the vocabulary and phonetics associated with the Saudi culture can give potential business owners a realistic view into the country and a better understanding of its culture.
Cultures and languages aside, those looking to make their fortune in Saudi Arabia should also gain an understanding of the local economy. Familiarizing oneself with the local currency, Riyadh stocks exchange, and specific industries of the economy can be essential when making business decisions. There are various resources that can help Americans gain knowledge and understanding including local businesses magazines, official Saudi government websites, as well as non-government websites and forums.
Maintaining a good understanding of the Saudi culture can be equally important. Becoming familiar with forms of dress, traditions and culture can create better understanding for those from outside the region. Becoming fluent in the Saudi dialect, as well as any of the other seven dialects, can therefore be beneficial.
Earning Respect
The importance of being a respectful member of the Saudi business community cannot be underestimated. The government insists on this, and potential business owners must smoothly adapt to the culture. Practices such as avoiding public displays of affection, following appropriate dress codes, and maintaining respect in public is essential. Above all else, respect for the Saudi government and its laws should also be demonstrated. This can often be seen in politeness and tact, making it important for an American businessperson to learn the rules of the culture.
Likewise, it is critical to develop relationships and bonds with local Saudi businesses. Business owners should actively participate in networking events and create their own circles of contacts. Showing genuine interest in the Saudi business community, and attending local events such as conferences and receptions can help increase trust and respect. Establishing connections and building relationships are powerful methods of gaining advantages in the business environment.
Establishing a Company
Establishing a business in Saudi Arabia can involve various complexities, and it is important to understand the entire process. One of the most important considerations is the company’s structure, which is based on Sharia law. It is important to make sure the structure is set up accurately with no company laws that go against local rules and regulations. There are various documents that must be completed, including a memorandum of association, board resolution and contractual agreements.. Additionally, the foreign business must also partner with a Saudi company, choosing a partner who is compatible and with the same business values.
The business must also acquire the necessary license, which requires applications and various forms. The process also includes filing with the corporate affairs directorate and signing a contract. Depending on the type of business, other of approvals may also be necessary. Making sure all documents are completed on time and correctly can save a great deal of time and effort, speeding up to process of applying for permission.
Research
Another essential element to consider is the process of conducting research. Researching the local market is important to better understanding the local traditions, customs, and of course, the language. Additionally, learning about the competition, products, services, and competitive advantages of rivals can help make informed decisions. There is also a great deal of potential information available to potential business owners, including secondary and primary research methods. This may include interviewing local businesses, searching company directories, and researching business reports.
Equally important is the process of finding a place to stay in Saudi Arabia. The best places to look are in the local newspapers, classified advertisement sites, and real estate agents. These can often provide helpful resources in finding suitable accommodation and the best places to live in the area.
Financing
The process of financing a business venture in Saudi Arabia is highly regulated, and there are a few options. The most common financing sources include personal or family funds, government grants, and bank loans. In the case of the latter two sources of funding, applicants must make sure to secure the necessary documents and approvals. This includes applying for any visas required to legally enter the country, as well as any required permits and licenses.
For even greater access to funds, potential business owners could consider finding venture capital from reputable firms and investors. This could involve reaching out to renowned firms in the region, or even contacting investors from outside the country. Regardless of the source, it is important to complete all financial paperwork correctly and in a timely manner.
Marketing
No matter the product or service, one of the most important elements to any business is effective marketing. Understanding the Saudi population and their habits can be beneficial when devising a marketing strategy. Additionally, potential business owners should look to build a comprehensive website in both English and Arabic. Establishing social media accounts and taking advantage of local search engine optimisation can also be advantageous.
There are also other available marketing resources that could be explored. These include radio and television advertising, market research, as well as traditional and digital advertising. Finding an appropriate budget for marketing should also be taken into consideration. It can be easy to be overly ambitious when it comes to marketing, but in reality, it is important to be conservative and practical to ensure long term sustainability.
