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Group 11
The country is nearly 100 per cent Muslim (85% Sunni, 15% Shia). Major industries include petroleum mining and refining, petrochemicals, cement, construction, fertiliser and plastics
Business Environment
Value Analysis
PDI (95) High level of inequality of power and wealth Rule-oriented society Leaders separate themselves from the group IDV(25) A collectivistic society. Close long-term commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty is paramount, and over-rides most other societal rules MAS(60) Males dominate society and power structure Managers are expected to be decisive and assertive Limitation of rights to women mainly due to Muslim religion
UAI(80) Strict rules, laws, policies, and regulations to minimize uncertainty. Society does not accept change and is risk averse
Norms
Consumption of Alcohol and Pork No Public exhibition of films Public expression of opinion about domestic matters is not encouraged.
Social Structure
Saudi Arabia has a medieval social structure, comprising four classes of people:
The royal family is on top: It includes all the descendants of the original Saudi rulers and their tribal allies. Second comes a smaller group of businessmen dependent on the patronage of the Royal Family, followed by government employees. At the bottom are the majority of commoners who are supported through the welfare state.
Religion
Saudi Nationals preserve the religious value and ancient traditions of the Islam religion, which affect the way business is dealt with
Investing in businesses that provide goods or services contrary to Islamic principles is sinful and prohibited No unjust profit through the exploitation of others Live up to contractual obligations and no deception
Closing stores for prayer five times a day. Weekends in the Kingdom are set on Thursdays and Fridays Fixed or floating payment or acceptance of specific interest or fees on loans of money is prohibited
Education
The great weaknesses of the Arab world are the lack of freedom, the lack of knowledge and the lack of womens empowerment. In Saudi Arabia male and female students are educated in separate classrooms. Interestingly, male teachers can teach female students and vice versa. Women comprise 58% of Saudi Arabia's college students but only 14% of its labour force Among conservative families, teaching is one of the few approved professions for women. In Saudi elementary schools, nine hours per week (out of 2831 teaching hours) are devoted to Islamic studies
Language
Verbal
Saving Face
To avoid confrontation and conflict
Verbal Expectations
To address elders, use their correct title, such as Mr., Mrs, Dr., etc. When members of the same sex greet one another, a handshake or kiss on each cheek is accompanied by saying: As Salaamukum
Non Verbal
High Context
Non-direct communication cues such as body language and eye-contact, tone of voice, facial cues, and the use of silence.
Haptics
Deals with the sense of touch. Left hand is considered unclean and right hand is used for shaking hands, eating, drinking
Cultural Changes
Relaxing Restrictions on Women
Commercial Business licenses Right to Drive Female shop assistants in cosmetics shops Vote in municipal elections Work as teacher and doctor
Saudiazation Program
Transforming cultural attitude toward work for Modern manufacturing and business To replace foreign workers with Saudi Nationals To stop remittances of foreign workers
Thank You