BUSINESS SUCCESS IN THE MIDDLE EAST 55
What are the cultural and situational deter-
minants of success in the Middle East?
Business
Success in the
Middle East
Sami M. Abbasi and Kenneth W. Hollman
Management Decision, Vol. 31 No. 1, 1993. pp. 55-59,
MCB University Press Limited, 0025-1747
In the rush to explore new market opportunities in Eastern
Europe, American companies and investors have
overlooked a significant region — the Middle East. Yet
the trade and investment opportunities are enormous
throughout the Middle East region. In its 1992 global
economic outlook report, the International Monetary Fund
(IMF) predicted that the Middle East will grow faster than
any region in the world between now and the year 2000,
and will quickly return to normal trade following the Gulf
War[l,2]. This prediction appears to be reinforced by
recent information from the US Department of Commerce
about the surge in exports to Middle East markets[3].
Other reasons for American companies to consider their
options in the Middle East include [4,5,6]:
(1) The region is projected to have over 200 million
consumers (with a plethora of ethnic types) by the
year 2000. It offers a rapidly growing market for
a multitude of goods and services.
(2) A significant share of the world's fossil fuel
resources, which are of crucial importance to
Western economics, are located in and controlled
by Middle Eastern countries. For example,
approximately 40 per cent of the world's oil is being
produced in the Middle East and Arab Africa, and
about 70 per cent of all proven oil reserves are
located in this region.
(3) Many Middle Eastern countries, particularly those
in the OPEC group, have proved to be of strategic
military importance to the West. This assertion was
verified during the recent Gulf war.
(4) The oil-fuelled boom of the mid-1980s caused the
wealth of many Middle Eastern countries to
multiply in a short time. They experienced a
tremendous rise in national income and in cash
balances available for investment worldwide which
has helped to alter the pattern of world trade.
(5) Although not all Middle Easterners are Arabs,
Arabic cultural characteristics are dominant in this
region as well as in other parts of the Islamic world,
which comprises over 20 per cent of the world's
population.
(6) The cultural, ideological, political and economic
mosaics vary greatly among countries in the Middle
East region. However, in most cases there is a
sophisticated infrastructure (road, bridges, schools,
communications networks, utilities), and a high
quality of services is typically provided.
In reviewing the above information, it would appear logical
that the Middle East would be an ideal choice for trade
and investment by American companies. However, this
is not the case. The lack of investment and trade could
be attributed to lack of information by businessmen —
benign ignorance might be the appropriate term — about
the Middle East. Some contend, however, that it is due
to flawed perspectives and a host of subtle cultural and
political biases that skew the usually objective process
of defining potential market opportunities away from
Middle Eastern countries[7,8].
Although some American firms have experienced success
in doing business in the Middle East, others have
encountered problems when confronted with cultures that
are unfamiliar and challenging. Nevertheless, if American
businesses are to succeed in the latest round of going
global, it is important that they look at the USA-Middle
East business relationship in cultural terms. It is ironic
to note that many US allies such as Japan, Germany,
Britain, Canada, France, South Korea and others, have
rnade great efforts to become familiar with the cultural
dimensions of doing business in the Middle East. Their
acculturation efforts have enabled these countries to
capture large shares of business in Middle Eastern
markets.
It is well documented that knowledge of another country's
culture can help to reduce the number of failures and hence
the cost of doing business there. For example, one study
revealed that more than two out of every three business
people assigned to Saudi Arabia are brought home early
due to problems arising from cultural differences. Each
expatriate failure is very costly. A company may lay out
anywhere from $25,000 to $1 million for each such transfer,
depending on the employee's income, the country
involved, and whether he has his family with him[9].
 56 MANAGEMENT DECISION 31,1
Understanding Culture and Cultural
Differences
Warped cultural understandings may result in problems
that have important implications in business relationships
among and within firms. Therefore, it is important that
managers be familiar with, and oriented to, the cultures
of countries in which their firms operate. Culture manifests
itself in the attitudes, values, beliefs, morals, mores, habits
and traditions acquired by members of a society. A
manager assigned to the Middle East should make every
effort to cut through the web of mythology which
surrounds this vastly different culture and region. In
particular, the visiting manager should [10]:
(1) Be able to judge situations based on facts, not on
prejudice. Be positive, curious and flexible, and
respect local value systems even if you do not
comprehend or agree with them. Cross-cultural
training for managers assigned to the Middle East
is imperative.
(2) Recognize that' people in other cultures are
different, not inferior. Middle Easterners resent the
imagery Westerners have of them as sinister people
in a hot climate with long knives and short tempers."
They feel themselves to be a moral and peaceful
people with a rich history of art, science and
learning. This is a difficult concept for many
American managers to grasp.
Cultural Characteristics of the Middle East
Religion
Many cultures find in religion a reason for being; typically
this is a dominant force in their daily lives. Muslims, who
comprise the majority in the Middle East, see their
religion (Islam) first as a guide to a righteous way of life.
Second, they see it as the route to an eternal reward in
the hereafter. They may admire Western technology and
the supposed "superiority" of Western ideals, but they
have a deep and profound reverance for their own values,
heritage, traditions and religion.
The Islamic ideology was first pronounced through the
Prophet Muhammad in Mecca in the Holy Book, the
Koran (or Qu'ran), in 610 AD. Muslims consider
Muhammad to be the messenger of Islam — the appointed
mouthpiece of God. The Koran is the principal inspiration
and basic guidance of Islam. The term "Islam" means
submission, that is, the believer's submission to Allah.
In the eyes of believers, Muhammad, like Abraham,
Moses and Jesus, was a prophet who delivered the
message of the true God. However, unlike the Christian
conception of Jesus (the Son of God), Muslims do not
consider Muhammad to be a divine figure. Rather,
Muhammad was a mortal commissioned by God to deliver
God's sacred message to mankind. Muhammad's objective
was not to supplant but rather to complement the mission
of his predecessors, Jesus and Abraham. In fact,
Muhammad taught that Jesus and Moses were the most
important bearers of God's hallowed message to his people
in the Testaments and the Torah[1l].
In countries where Islam is the state religion, the belief
in Islam and its civil and ceremonial codes creates
consensus; there is no distinction between secular and
religious law; and religion permeates the whole fabric of
society, both public and private. The following list contains
the fundamentals (dos and don'ts) of the Islamic
religion [11, pp. 8-10]:
(1) Acknowledging that there is no god whatsoever but
God. This is the essence of Islam. The Islamic
religion has as its foundation submission and
obeisance to the will of the omnipotent and
omniscient creator, the one and only God, who
admits of no consorts or associates in the worship
and adoration of him.
(2) Honouring and respecting parents. No message
which the Prophet received from Allah is so
thoroughly underscored in the revelations as
honouring and respecting parents. In this area, the
familial and communal responsibility of believers is
expressed in its purest form.
(3) Respecting the rights of others. The Koran speaks
often against such injustices as the wealthy lording
their wealth over the poor, or the strong taking
advantage of the weak and helpless.
(4) Being generous but not a squanderer.
(5) Avoiding killing except for justifiable cause.
(6) Not committing adultery.
(7) Safeguarding the possessions of orphans.
Muhammad himself was born to a father who died
soon afterwards, and with the death of his mother
was orphaned at the age of six. He undoubtedly
understood very well what poverty accompanied
by orphanage meant. Revelations regarding
orphans, minors, the needy and destitute, as well
as slaves and their treatment and liberation, form
the cornerstone of the social structure of Islam.
(8) Dealing justly and equitably. The faithful are
commanded to be honest in their dealings with
others, to be true to their commitments, to honour
their promises, and to be truthful, trustworthy and
reliable.
(9) Being of pure heart and mind. A firm com-
mandment of Islam is to be beneficient, to be good
in communal relations, and to act rightly in all
circumstances. The faithful are admonished to be
constantly mindful of God's will in all dealings.
(10) Being humble and unpretentious.
In addition, it is important for managers who conduct
business in the Middle East to note that many occurrences
are justified in the name of religion. Specifically, the

behaviour of people in the Middle East is greatly influenced
by the belief that destiny depends more on the will of a
supreme being than an individual behaviour. That is, a
higher power dictates the outcome of important events,
so individual action is of lesser consequence than in
Western cultures. Even major holidays are often tied to
, religion in the Islamic world. For example, Islam requires
extensive fasting during the holy month of Ramadan.
During that month, few major business transactions are
accomplished. Furthermore, Muslims have strict prayer
requirements and the faithful must pray five times a day
at fixed times. Therefore, businessmen in the Middle East
should not be surprised if the man with whom they are
engaged in conversation suddenly takes a rug out of his
desk drawer, drops to his knees facing the east, and starts
praying. The best advice for a visitor is to just sit quietly
until he has finished.
Family Roles
Strong family relations and obligations are important factors
to be considered when doing business in the Middle East.
This is due to the fact that the concept of family often
extends to the workplace. In some cases, managerial and
other key positions in a business are held by family
members. For example, one study of businessmen in the
Gulf States identified the executives' families as the major
influence on their business success[12]. Specifically, the
father has absolute authority over activities of family
members. This situation develops from the fact that the
Middle East is a close kinship-oriented society. From birth,
young family members look to older members as role
models and the older people play a major role in the
intergenerational transfer of religion, attitudes, and
values [13,14].
There are many economic advantages to having such family
relationships. They are helpful in the creation of good
business connections, which are extremely important in
the Middle East. Middle Eastern business is conducted
on a very personal basis; parties to a transaction often
know each other and each other's family members.
Powerful, often interconnected families may influence the
sales of products and services, assist in cutting through
,the mountains of bureaucratic paperwork necessary to
initiate business, and help in gaining acceptance of licensing
and co-production agreements necessary for manu-
facturing production and regional distribution. These
relationships are especially important in countries where
business and government are closely interwined and the
government is a principal purchaser.
Decision Making
Patience is the fundamental quality needed for a person
doing business in the Middle East. This need for patience
arises from the fact that managerial styles of Middle
Easterners are highly authoritarian, with organizational
power and authority focused at the top[15,16]. It often takes
BUSINESS SUCCESS IN THE MIDDLE EAST 57
a protracted period of time for a decision to filter down
to lower levels in the organization. Some argue that this
style of decision making was inherited from early colonial
powers in the region (i.e. the Ottoman, French, and British
empires), which were characterized by extreme
centralization[17,18]. Thus, individuals raised in such an
environment are likely to behave passively and leave all
decisions in the hands of high-level managers. One
manifestation of this style is that Middle Eastern
executives like to deal with chiefs and not Indians.
Therefore, foreign companies are advised to send
executives to Middle Eastern countries who have the
power to make decisions.
When foreign businessmen travel to the Middle East for
negotiations, they should become silent observers of their
counterparts' habits and they should remain flexible and
be prepared to adjust their tactics to consider new
information.
They should also remember that, in negotiations, personal
relationships play an important role. Consequently, it is
important for foreign businessmen to establish not only
a business relationship but also a strong bond of friendship
with host counterparts. In addition, Middle East managers
tend to interject an emotional appeal in their business
negotiations. However, they are usually not inflexible in
their bargaining position. They will almost always
reciprocate an opponent's concessions[19,20].
In the decision-making process, it is advisable that one
avoids the "take it or leave it" approach. Tact and
diplomacy are extremely important when expressing
dissent or even doubt. People in the Middle East believe
in the concept of "saving face" and preserving one's
honour. This may explain why some Middle Eastern
businessmen would prefer to negotiate through trusted
third parties. In general, people in the Middle East like
to be independent, especially persons who are well
educated. They respond most favourably in a climate of
trust because trust reinforces their concept of cultural
pride. Thus, when communicating or negotiating with
Middle Eastern businessmen, foreign executives should
show sensitivity and empathy to the cultural heritages
which exist in the host country.
Situational Determinants
Winning business negotiations in the Middle East is
contingent on developing an understanding and
appreciation of the Middle Eastern attitude towards time,
space, manners and customs[4,21,22].
Time
When visiting the Middle East, American and European
managers often experience cultural shock relating to
differences in the treatment of time. Americans believe
 58 MANAGEMENT DECISION 31,1
that conserving time is an efficient process. A frequently
quoted adage is: "time is money". On the other hand,
to people in the Middle East, time is controlled by Allah
(God). Punctuality is not important. Time is flexible and
businessmen there would resent being coerced into
conforming to someone else's tempo. For this reason, they
may show up late for appointments or not come at all.
Showing indignation or impatience at such behaviour would
amaze and offend them. However, this casual perception
about deadlines and appointments is changing among
educated Middle Eastern businessmen. This change could
be attributed to their continuous exposure to the Western
way of doing business.
Another aspect of time is the waiting game. For example,
visitors received in a business office might find several
other people there, each conducting business totally
different from the others. The best advice for a person
in this situation is to take a seat and wait for his turn.
When the time comes to talk, one should not come straight
to the point. Rather, one should break the ice with
innocuous but positive small talk, discussing such things
as the beautiful scenery in the country, the decor of the
office, the delicious food one has recently eaten, etc. Keep
in mind that the first meeting is only to get acquainted
and to establish an amicable relationship. To show
professional courtesy, the businessman should make sure
that his business cards are presented in English on one
side and in Arabic, or some other Middle Eastern
language, on the other side.
Spate
Non-verbal cues are very important in the Middle East.
Middle Eastern businessmen like to stand close to people
they are talking with. Backing away by a foreign visitor
might incorrectly be taken as a negative reaction or lack
of interest. In addition, kissing on the cheeks is a common
practice when members of the same sex greet each other.
However, the visiting businessman should avoid
"backslapping" and other forms of playful frivolity
acceptable in America, because it is considered rude and
inappropriate in the Middle East.
Manners and Customs
Understanding manners and customs is very important
for negotiations in the Middle East. In general, Middle
Eastern people are warm, hospitable and courteous by
tradition. Therefore, misinterpretations of manners and
customs may lead to a totally incorrect conclusion. Below
are certain practices which one would be wise to observe
or to avoid:
(1) In any meeting, you should be sure to recognize
senior men first. This stems from the Koranic
dictum that older persons should be respected.
Also, people in the Middle East are status- and
rank-conscious.
(2) Always remember that a Middle Eastern
businessman does business with the "man", not
with the "company" he represents or the relevant
contract. Therefore, perceive your first business
visit and initial transactions with the host national
as part of the "getting to know each other" process.
(3) Never underestimate the educational background
of Middle Eastern businessmen or assume that
they are your intellectual inferior. Quite likely they
are more educated than you might think, and
subsequent negotiations may prove how shrewd
they are.
(4) Always remember that social customs are based
on the societal and familial dominance of males.
Consequently, women are usually not part of
business transactions or related entertainment for
traditional Muslims.
(5) Avoid asking any questions or making comments
about a man's wife or his adult female children.
(6) Avoid swearing and off-colour jokes. American
businessmen may condone and even appreciate
risque humour. Their Middle Eastern counterparts
may not.
(7) Do not give or accept anything with the left hand.
It is considered the "toilet hand".
(8) Consider the fact that the Islamic religion has strict
dietary requirements. Pork products and alcoholic
beverages are prohibited in certain Middle Eastern
countries.
(9) Never cross your legs or show the sole of your shoe
in the presence of others. This is the non-verbal
equivalent of telling them that they are worthy of
being stepped on and is considered to be very rude.
Conclusion
As international trade continues to increase, Americans
need to become better world citizens by learning more
about other cultures. Former US Secretary of Commerce,
Robert Mosbacher, indicated that: "American companies
have to rely on all available tactics for winning in the global
marketplace today. Learning international business
diplomacy should be the first step they take" [23].
A good starting-point for Americans who wish to conduct
more business in the Middle East is to eliminate as much
bias as possible from our perceptions of the region. We
need to begin by recognizing that most of our knowledge
about the people in the Middle East comes from media
which entertain rather than educate. Our view of Middle
Eastern customs is distorted by what we read, see or hear
in the electronic and printed media. Economic
considerations aside, business persons cannot hope to
function successfully in Middle Eastern countries in the
long run with biases which denigrate local cultures.
 BUSINESS SUCCESS IN THE MIDDLE EAST 59

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Sami M. Abbasi is in the School of Business at Norfolk State University, Norfolk, VA, and Kenneth W. Hollman holds
the Martin Chair of Insurance at Middle Tennessee State University, Murfreesboro, TN, USA.

Application Questions
(1) Does your organization offer any cultural training or orientation to its executives engaged in negotiations with
foreign business people? How could it do so, how might these be improved?
(2) Do you agree with the author that understanding and respecting other cultures is a prerequisite to success in
doing international business? Why/why not?